Funding Mechanisms
Understand the different approaches to capital allocation. From quadratic funding to retroactive rewards, explore how each mechanism works and when to use it.
Showing 8 mechanisms
Quadratic Funding
A democratic funding mechanism that matches community contributions quadratically, amplifying the impact of many small donors over few large ones.
Best for:
Retroactive Public Goods Funding
Rewards projects after they've demonstrated impact, rather than funding promises. "It's easier to agree on what was useful than what will be useful."
Best for:
Conviction Voting
A continuous voting mechanism where support accumulates over time, allowing preferences to be expressed without discrete voting periods.
Best for:
Direct Grants
Traditional grant-making where a committee or individual directly allocates funds to selected projects based on applications and evaluation.
Best for:
Token Streaming
Continuous, real-time transfer of tokens from sender to recipient, enabling salary streams, subscriptions, and ongoing funding flows.
Best for:
Milestone-Based Funding
Funding released in tranches as projects complete predefined milestones, reducing risk and ensuring accountability.
Best for:
Attestation-Based Funding
Using onchain attestations and reputation signals to determine funding eligibility and amounts.
Best for:
Quadratic Voting
A voting mechanism where the cost of additional votes increases quadratically, allowing for nuanced preference expression.
Best for:
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