How Is Quadratic Funding Different from Quadratic Voting?
Quadratic funding (QF) is a mechanism for allocating public goods funding, where the total grant to a project is a function of the square of the sum of the square roots of individual contributions. It aims to match small donations from many people with a large pool of funds, maximizing the influence of the number of unique contributors over the amount contributed.
Quadratic voting (QV) is for making governance decisions, where the cost of a vote is the square of the votes cast.
Glossar
Sybil Resistance
Architecture ⎊ Sybil resistance, within cryptocurrency derivatives and options trading, fundamentally concerns the design of systems to mitigate the impact of malicious actors controlling multiple identities to gain undue influence.
Quadratic Voting
Formula ⎊ The core principle employs a cost function where the expense to cast additional votes increases quadratically, typically requiring $n^2$ tokens for $n$ votes.
Quadratic Funding
Funding ⎊ Quadratic funding represents a mechanism designed to incentivize public goods contributions within decentralized ecosystems, particularly those leveraging blockchain technology.
Unique Contributors
Metric ⎊ Unique Contributors is a key quantitative metric in decentralized finance, representing the distinct number of individual addresses or verified identities that have provided capital, labor, or intellectual input to a specific project or public good.