Breadchain Crowdstaking
TL;DR:
Crowdstaking turns passive capital into recurring funding for public goods. Supporters stake crypto into a shared contract, and the interest or yield produced goes to impactful projects. Contributors don’t spend their assets—they lend their economic gravity to fund what matters.
This mechanism solves a common friction in public goods funding: people want to help, but don’t want to lose their funds. With crowdstaking, they don’t have to. They simply stake their tokens (e.g. ETH, MATIC), and the rewards go to a shared funding pool.
Crowdstaking is especially aligned with solidarity-based, non-extractive economic models. It makes it easier for supporters to participate, lowers the opportunity cost of giving, and creates a recurring, sustainable revenue stream for cooperatives, DAOs, and mutual aid networks.
The most well-known implementation of this model is by Breadchain, which uses tools like Superfluid to stream staking rewards in real time to support regenerative, post-capitalist infrastructure.
Best For
- Ongoing funding for public goods and commons
- Mutual aid networks or cooperatives
- Protocols with idle capital or aligned communities
- Communities seeking non-extractive finance models
Good At
- Lowering the barrier to support public goods
- Turning passive assets into active impact
- Creating continuous, streaming capital flows
- Aligning contributors and funders without direct payment
Dependencies / Requirements
- A staking asset with yield (e.g. ETH, liquid staking tokens)
- Smart contracts to collect and distribute yield
- Optional: streaming infrastructure (e.g. Superfluid)
- Trusted governance or criteria to determine how funds are allocated
Not Good At
- Immediate funding for urgent or upfront capital needs
- Projects needing high predictability in short-term cash flow
- Systems without accessible staking infrastructure
- Low-yield environments where the economics don’t scale
Who Should Use It?
- DAOs or networks seeking long-term, sustainable funding
- Contributors aligned with cooperative or regenerative values
- Ecosystems that want to unlock capital without spending it
- Builders looking for low-friction ways to fund shared infrastructure
Example Use Cases
- Breadchain uses crowdstaking to support cooperatives and post-capitalist public goods through yield-generating vaults
- A protocol sets up a staking pool where community members stake ETH; the yield supports grants to ecosystem builders
- A regional mutual aid network crowdsources yield from stablecoin staking to fund community services