Quadratic Funding: Difference between revisions
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'''= "Quadratic Funding is the mathematically optimal way to fund public goods in a democratic community".''' [https://wtfisqf.com/?grant=&grant=&grant=&grant=&match=1000] | |||
=Definition= | |||
"Matching pool is raised, and then a crowdfund campaign is matched according to the QF algorithm: | |||
Number of contributors matters more than amount funded. | |||
This pushes power to the edges, away from whales & other central power brokers. | |||
This creates more democracy in public goods funding decisions!" | |||
(https://wtfisqf.com/?grant=&grant=&grant=&grant=&match=1000) | |||
=Description= | =Description= | ||
BlockScience: | '''1. BlockScience:''' | ||
"Quadratic Voting captured the hearts of the web3 space after being re-introduced by the Radical xChange movement. Gitcoin builds on the same principle by leveraging a powerful algorithmic policy called Quadratic Funding (QF) to allocate sponsor funds via matching community donations to grants submitted through the Gitcoin Grants program. The purpose of this form of grant matching is to allocate sponsor funding via a community preference signal by capturing not just the depth of donations ($ amount donated), but also the breadth of the donation base (# people who donated). The outcome is that grants that are supported by many people with small donations would receive relatively larger matching than grants supported by few donations of larger amounts. In effect, Quadratic Funding aims to boost the influence of people over plutocracy. | "Quadratic Voting captured the hearts of the web3 space after being re-introduced by the Radical xChange movement. Gitcoin builds on the same principle by leveraging a powerful algorithmic policy called Quadratic Funding (QF) to allocate sponsor funds via matching community donations to grants submitted through the Gitcoin Grants program. The purpose of this form of grant matching is to allocate sponsor funding via a community preference signal by capturing not just the depth of donations ($ amount donated), but also the breadth of the donation base (# people who donated). The outcome is that grants that are supported by many people with small donations would receive relatively larger matching than grants supported by few donations of larger amounts. In effect, Quadratic Funding aims to boost the influence of people over plutocracy. | ||
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(https://medium.com/block-science/towards-computer-aided-governance-of-gitcoin-grants-730de7bcdbef) | (https://medium.com/block-science/towards-computer-aided-governance-of-gitcoin-grants-730de7bcdbef) | ||
'''2. Benjamin Life:''' | |||
"Building on the work of economist Glen Weyl and Ethereum founder Vitalik Buterin, quadratic funding mechanisms incorporate preference intensity and address coordination problems inherent in public goods provision. By matching individual contributions according to the number of contributors rather than contribution amounts, these systems give communities greater influence over resource allocation. | |||
For example, a community development fund using quadratic matching would prioritize projects with broad support rather than those favored by a few wealthy donors. This exemplifies what Elinor Ostrom termed "institutional diversity"—creating governance and funding mechanisms appropriate to different types of goods and services rather than applying market mechanisms universally. | |||
By incorporating these technical innovations, blockchain-based systems can implement what philosopher of technology Andrew Feenberg terms "democratic rationalization"—technical designs that incorporate a broader range of values than narrow market efficiency." | |||
(https://omniharmonic.substack.com/p/beyond-narrow-optimization?) | |||
=More information= | |||
* Video intro via https://www.youtube.com/watch?v=HJljTtLnymE | |||
* Explanation by Vitalik Buterin, https://www.youtube.com/watch?v=J0TY5mImmZ8 | |||
[[Category:Crypto_Economy]] | |||
[[Category:Crypto_Governance]] | |||
[[Category:Cryptoledger_Applications]] | |||
[[Category:Peerfunding]] | [[Category:Peerfunding]] | ||
Latest revision as of 13:54, 8 September 2025
= "Quadratic Funding is the mathematically optimal way to fund public goods in a democratic community". [1]
Definition
"Matching pool is raised, and then a crowdfund campaign is matched according to the QF algorithm:
Number of contributors matters more than amount funded.
This pushes power to the edges, away from whales & other central power brokers.
This creates more democracy in public goods funding decisions!"
(https://wtfisqf.com/?grant=&grant=&grant=&grant=&match=1000)
Description
1. BlockScience:
"Quadratic Voting captured the hearts of the web3 space after being re-introduced by the Radical xChange movement. Gitcoin builds on the same principle by leveraging a powerful algorithmic policy called Quadratic Funding (QF) to allocate sponsor funds via matching community donations to grants submitted through the Gitcoin Grants program. The purpose of this form of grant matching is to allocate sponsor funding via a community preference signal by capturing not just the depth of donations ($ amount donated), but also the breadth of the donation base (# people who donated). The outcome is that grants that are supported by many people with small donations would receive relatively larger matching than grants supported by few donations of larger amounts. In effect, Quadratic Funding aims to boost the influence of people over plutocracy.
The Quadratic Funding mechanism is one example of a resource allocation strategy derived from convex optimization, with the aim to improve the community signal of which projects receive supporting funds by tuning the network sensitivity more towards human influence (# of people donating) over monetary influence ($ amounts donated). "
(https://medium.com/block-science/towards-computer-aided-governance-of-gitcoin-grants-730de7bcdbef)
2. Benjamin Life:
"Building on the work of economist Glen Weyl and Ethereum founder Vitalik Buterin, quadratic funding mechanisms incorporate preference intensity and address coordination problems inherent in public goods provision. By matching individual contributions according to the number of contributors rather than contribution amounts, these systems give communities greater influence over resource allocation.
For example, a community development fund using quadratic matching would prioritize projects with broad support rather than those favored by a few wealthy donors. This exemplifies what Elinor Ostrom termed "institutional diversity"—creating governance and funding mechanisms appropriate to different types of goods and services rather than applying market mechanisms universally.
By incorporating these technical innovations, blockchain-based systems can implement what philosopher of technology Andrew Feenberg terms "democratic rationalization"—technical designs that incorporate a broader range of values than narrow market efficiency."
(https://omniharmonic.substack.com/p/beyond-narrow-optimization?)
More information
- Video intro via https://www.youtube.com/watch?v=HJljTtLnymE
- Explanation by Vitalik Buterin, https://www.youtube.com/watch?v=J0TY5mImmZ8