https://polkadot.subsquare.io/referenda/1321

Quadratic Funding in Polkadot

• Purpose: Introduce quadratic funding (QF) as an alternative to the current treasury spending model in the Polkadot ecosystem.
• How it Works:
  • Projects share a fixed public fund pool.
  • Community votes, calculated by the weighted square root of donations, determine the final distribution.
• Benefits:
  • Reduces the influence of large token holders.
  • Encourages broader community support.
• Challenges:
  • Potential for Sybil attacks (fake accounts).
  • Incentivizing donations when a public fund pool exists.
• Implementation:
  • Funding rounds with predetermined budgets.
  • Projects apply and are reviewed by curators.
  • Communities donate assets, and funds are distributed via child bounties.
• Reputation System:
  • Addresses have voting weights based on on-chain and off-chain activities.
• Audit:
  • Transparent fund distribution and voting weight information.
• FAQ:
  • QF is an alternative to, not a replacement for, OpenGov treasury funding.
  • Projects can apply for both QF and OpenGov funding.
  • Whales benefit from QF by improving treasury spending decisions.