Quadratic Funding

Quadratic Funding is a method to allocate public funds to support projects based on community interest. Instead of just counting how many people contribute, it emphasizes the size of individual contributions in a way that encourages smaller donors to participate, leading to a more democratic distribution. Essentially, the total funding a project receives increases with the square root of individual donations, so many small contributions collectively have a bigger impact than a few large ones. This approach helps fund projects that are broadly supported, making community preferences more effectively reflected in funding decisions.