Quadratic Funding
Created on 2020-11-05T21:17:26-06:00
tl;dr using a quadratic curve allows paying more to win but applies a harsh curve to make extreme spending less desirable.
also crowd funding public works by whales using a sponsor pool that pays to projects based on area of a triangle instead of straight 1:1 matching.
the quadratic sponsorship part is inferred by doing an n-pairwise analysis of how much each actor benefits from a good even if they opt not to pay for it.
- People only buy goods if the perceived value is aligned with the value/cost.
- The more money behind a public work, the more likely it will receive the rest of the funding it needs.
- In a "public market" where everyone benefits if something is paid for, simulations predict funding comes primarily from whales.
- Someone only donates to a public work when probability of success * value > 100%.
- "One person one vote" favors voters with minimal concerns.
- "One dollar one vote" favors the wealthy.
- In quadratic buying/voting, the cost of each subsequent vote costs one more unit than the previous. Total cost of votes is {n^2}/2.
Your n'th unit of influence costs $n.
Quadratic elections
- Take one or more candidates.
- Give voters some number of points to distribute.
- Can give positive or negative votes to any candidates desired, but the ballot line costs {n^2}/2 where n is the score given to the candidate.
- Sum the points given to every candidate.
Vitalik also suggests making an entire ballot of propositions as the candidates.
Also a warning against currencies held between ballots; someone can keep re-posting the same petition to exhaust people's tokens on vetoing the measure.
Quadratic subsidies
To find out the amount of money a sponsor contributes:
- Group and sum contributions by donor
- Take the square root of each
- Sum the square roots
- The sponsor pays the square root of this sum
Quadratic ads
- Highest score bidder gets the ad spot for $time
- Each point costs more than the last ex. (score^2)/2 is total price paid