Quadratic Funding Explained

Quadratic funding is an innovative approach to crowdfunding that prioritizes projects with broader community support rather than those funded by a few large donors. This method uses a unique matching mechanic where contributions are matched based on the number of contributors rather than the total amount raised. For instance, if two projects each raise $500, the one with a larger number of small contributions will receive a disproportionately larger share of a matching pool, demonstrating that many small donors can collectively wield greater influence. This model effectively democratizes funding, allowing projects that resonate with everyday citizens to gain the resources they need, thus reflecting true community priorities.