Quadratic Funding
A matching mechanism that amplifies broad community support by weighting many small contributions more than a few large ones.
Quadratic funding is a public-goods funding model where a shared matching pool favors projects supported by many distinct contributors. The matching amount is based on the square of the sum of the square roots of individual contributions, so broad participation matters more than a few large donations.
Crypto communities use quadratic funding to support open-source tools, research, education, and infrastructure. On-chain or wallet-based contributions can make funding rounds transparent, but the matching pool still needs governance and anti-fraud rules.
The model is vulnerable to Sybil attacks if one person can cheaply appear as many donors. Strong identity, reputation, or contribution limits are often needed so the matching formula reflects real community preference rather than coordinated manipulation.
Related terms
3 linkedExplore connected entries beyond the alphabetical index.
DAO (Decentralized Autonomous Organization)
→A DAO is an on-chain organization where members coordinate proposals, treasury actions, and rules through transparent governance processes.
Governance Token
→A token that grants proposal, voting, or delegation rights in a protocol's governance process.
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.
