Maelstrom Launches $250,000 Grants for Bitcoin Developers

Coin WorldTuesday, May 20, 2025 11:28 pm ET
2min read

Maelstrom, the investment fund led by Arthur Hayes, has launched a developer grant initiative that could significantly reshape the decentralized software funding landscape. This initiative is not just about the grant amounts, but about empowering independent developers to direct Bitcoin’s evolution without relying on centralized institutions. The grants, ranging from $50,000 to $150,000 per year, with top-tier awards stacking up to $250,000 annually, are disbursed monthly in BTC, USDT, or USDC. This aligns developer incentives with the crypto-native ethos, funding non-commercial contributions like code reviews, bug patches, and privacy upgrades to Bitcoin Core. Unlike VC-driven crypto projects, this program supports contributions that enhance the protocol's health rather than focusing on profit.

The applications are evaluated by a review board that includes Hayes and other domain experts. This model bypasses corporate influence, offering long-term funding tied to transparent technical merit and peer-reviewed contributions. The strategy reflects a broader ideological pivot—where capital supports protocol health, not profit. As institutional money enters crypto, Maelstrom’s move roots power back in open-source engineering, free from short-term tokenomics.

The first recipients of these grants reflect the program’s mission of privacy and independence. Developer Ben Allen secured $100,000 to advance the Payjoin Dev Kit, a privacy-preserving tool that breaks transaction linkages, increasing anonymity in everyday Bitcoin use. Another grantee, Rkrux, a Chaincode Labs alumnus, will dedicate full-time efforts to reviewing Bitcoin Core code—an area often neglected due to a lack of funding. Their work aims to strengthen censorship resistance and core infrastructure without introducing new financial instruments or risky forks. Instead of funding flashy DeFi tools, Maelstrom is rewarding critical yet invisible contributions that keep Bitcoin secure, lean, and private. This contrasts with prior funding models dominated by exchanges, corporations, or ecosystem-aligned foundations. These selections are also designed to inspire a new generation of Bitcoin contributors who may have lacked access to meaningful, independent financial support. In turn, this strengthens decentralization not just in protocol governance, but also in who gets to build the future.

Maelstrom’s grant structure reflects a deeper shift away from traditional power centers in crypto development. With spot ETFs drawing regulatory and institutional eyes to Bitcoin, ensuring the underlying protocol remains open and independently maintained has become a priority. Rather than waiting for centralized entities to support updates, this program puts that power directly in the hands of developers who earn it through technical credibility. It also addresses Bitcoin’s long-standing “volunteer maintenance” problem—by offering livable, long-term income for independent contributors. This could signal a new trend: decentralization not just in code or tokens, but in the economics of contribution. With up to $250,000 in non-equity, non-custodial support per developer, Maelstrom is designing a parallel financial system for developers—one that honors Bitcoin’s roots while preparing for its future.