Extended Quadratic Funding

Our voting system considers three key factors: the number of supporters, their proven track record of social impact (shown as an "impact score"), and their financial contributions to your project.

In theory, your voting power is calculated by the square root of the amount donated, then multiplied by your impact score.

Formula

If you donate $100 and your impact score is 10, the voting power will be:

Voting Power = sqrt(donation) × impact score
             = sqrt(100) × 10
             = 10 × 10
             = 100

Extended Quadratic Funding serves to allocate resources reflecting community preferences while preventing wealth concentration.

Key Advantages

  • Democratic Decision-Making: Small donations gain more weight when combined, ensuring broader community participation in investment decisions
  • Fair Resource Distribution: Prevents wealthy donors from dominating funding decisions
  • Impact Optimization: Funds are allocated based on both community support and verified social impact

Funding Structure

All proposers have two potential funding sources:

  • Investment from the matching pool — allocated based on quadratic voting results
  • Community donations — direct contributions from supporters

Example

Consider a $10,000 matching pool with three projects:

The investment allocation across projects depends on specific donation amounts and the quadratic voting formula. Projects with broader community support (many smaller donations from high-impact voters) receive proportionally more investment from the matching pool than projects with fewer, larger donations.

This ensures that community-validated projects receive the most matching pool investment, regardless of the size of individual donations.

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