# Problem Statement

## **The Challenge We Face**

Despite being the foundation of almost all technological innovation today, **open-source development remains chronically underfunded**.\
While corporations and millions of users benefit daily from open-source libraries, frameworks, and tools, the developers behind these contributions often go unrecognized — or worse, unpaid.

Traditional funding models for open-source projects are fragmented and inefficient:

* **Grants** are rare, bureaucratic, and centralized.
* **Donations** are inconsistent, relying heavily on goodwill rather than merit.
* **Sponsorships** tend to favor popular projects, not necessarily the most critical or innovative.

This creates a system where:

* Talented developers are forced to abandon open-source contributions for more stable employment.
* Critical infrastructure is maintained by small, unpaid teams — risking the security and continuity of the internet itself.
* Innovation is stifled, and brilliant ideas are left unrealized due to lack of sustainable support.

**In addition, Web3 governance models have their own flaws**:

* Large token holders ("whales") can manipulate votes.
* Passive staking can allow users to accumulate power without participating actively.
* Reputation is often missing or improperly measured, ignoring real contributors in favor of speculators.

***

## **Our Vision**

Server Protocol recognizes these fundamental challenges and offers a **new paradigm**:\
A fully decentralized, merit-based system that **rewards real value**, **prevents manipulation**, and **nurtures innovation**.

By blending **on-chain governance**, **staking mechanisms with dynamic emission controls**, and **a reputation-based influence system**, we build a framework that:

* Empowers developers to receive **fair, continuous rewards** for their work.
* Encourages communities to **actively participate** in project discovery, funding, and validation.
* Protects the system from manipulation and preserves the **integrity and sustainability** of the ecosystem.

Server Protocol doesn't just patch the gaps of traditional systems — it **reinvents the foundations** of open-source contribution funding for the decentralized era.
