Merit Systems

About Merit Systems

Merit Systems Inc. is a New York-based startup founded in 2024 by Ryan Sproule and Sam Ragsdale. The company is developing a protocol to address the attribution and compensation challenges within the open-source software ecosystem. Sproule and Ragsdale bring relevant experience from the venture capital and technology sectors; Ragsdale was formerly an investor at Andreessen Horowitz (a16z), and Sproule was associated with Blockchain Capital. Ragsdale also possesses a background in open-source and blockchain technologies, having contributed to the design of Jolt, a virtual machine utilizing zero-knowledge proofs.

The firm's core offering focuses on what it terms 'open-source capitalism,' a model designed to create a sustainable economic framework for software developers. By integrating rich attribution data into version control systems like GitHub, Merit Systems' protocol enables capital to be channeled directly to the developers and codebases responsible for impactful contributions. This system aims to create a dynamic market where builders are directly incentivized and rewarded for their work, moving away from traditional corporate hierarchies.

The business operates in the software development and Web3 market, targeting open-source projects and the developers who contribute to them. Its business model centers on facilitating a transactional layer for open-source contributions, potentially through a platform based on blockchain technology to ensure creators receive fair credit and remuneration. In January 2025, Merit Systems secured $10 million in a seed funding round. The round was co-led by a16z Crypto and Blockchain Capital, two prominent venture capital firms in the Web3 space.