Quadratic Funding
A matching mechanism that amplifies broad community support by weighting many small contributions more than a few large ones.
Quadratic funding uses a formula where total match grows with the square of individual contributions, encouraging wide participation and reducing plutocratic influence.
"Open-source projects receive larger matches when many donors contribute small amounts rather than a few whales."
Related Terms
DAO (Decentralized Autonomous Organization)
→A DAO is an on-chain governance structure where rules are encoded in smart contracts and decisions are made collectively by token holders or members.
Governance Token
→A token granting voting power or proposal rights in protocol governance, typically used by DAOs and DeFi platforms.
Protocol
→The formal set of rules that define how participants in a network communicate and reach consensus.
All terms and definitions may update as the Cryptionary improves.
