Open Source Quadratic Funding
Description
Liam 'Akiba' Wright:
"According to information shared with CryptoSlate, Gitcoin has been making strides in fostering an ecosystem of public goods, seemingly under the radar. The organization has distributed over $50 million across over 100 Quadratic Funding rounds, supporting institutions like UNICEF with blockchain-based public goods funding.
Among its many initiatives, Gitcoin focuses on regenerative initiatives, issuing grants for nature-based solutions, clean energy, and indigenous communities. One shining example is the Universal Impact Pool, which guarantees donations are funneled to projects that matter.
Quadratic Funding is a distinctive crowdfunding approach inviting community members to ‘vote’ with their contributions on project funding allocation. The method pools together small donations, matching them with a more significant amount from a central fund.
A defining feature of QF is its emphasis on the number of contributors rather than the total donation amount, fostering community involvement and shared ownership.
According to WTFisQF.com, a funding round where several projects receive funds from a varying number of contributors has the final distribution calculated using the QF formula and then projects with broader support receive a more significant match.
Despite potential challenges such as collusion or misuse of funds, QF presents a novel way of empowering the community and could play a significant role in shaping the future of cryptocurrency projects like those on Gitcoin."