What is Quadratic Funding?
Quadratic funding introduces a novel economic model where public goods receive matching funds proportional to the sum of the square roots of individual donations. This mechanism prevents wealth concentration and ensures equitable participation.
Mathematical Principle
Funding = ∑ donations + (Matching Pool × ∑√(donations)2 / ∑√(donations))
DAO Integration & Governance
When combined with blockchain-based DAOs, quadratic funding creates self-sustaining ecosystems where:
- ✅ Proposals are evaluated cryptographically
- 🔐 Voting requires token staking
- 🔄 Funds are locked in smart contracts
- 🔄 Disbursement follows verified execution
Real-World Impact
Experiments using this model have successfully funded open-source software, public infrastructure, and community-driven initiatives while avoiding the "tyranny of the majority" issues inherent in traditional voting systems.