Quadratic Funding (QF) is a funding mechanism designed to distribute a pool of matching funds among multiple projects based on the number of unique contributors. In quadratic funding, matched amounts are calculated by using the quadratic formula, where: “the amount received by the project is (proportional to) the square of the sum of the square roots of contributions received.” (Liberal Radicalism: A Flexible Design for Philanthropic Matching Funds)

With Quadratic Funding, the matching rate decreases as the size of the contribution increases. The goal is to bring the most funding to projects that have the largest community supporting them, rather than supporting only projects with a few large donations from a small number of people. This helps to create a more democratic and inclusive system for funding projects.

For more information, details, and even a helpful simulator, visit “WTF is QF?” or check out

this explanation by Finematics.

https://www.youtube.com/watch?v=hEHv-dE4xl8&embeds_referring_euri=https%3A%2F%2Ffinematics.com%2F&source_ve_path=MjM4NTE&feature=emb_title

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