Attestation-Based Funding
Using onchain attestations and reputation signals to determine funding eligibility and amounts.
How It Works
1. Projects or individuals collect relevant attestations 2. Attestations are verified and stored onchain 3. Funding algorithms incorporate attestation data 4. Higher/better attestations improve funding outcomes 5. Creates reputation systems over time
Deep Dive
Attestation-based funding uses onchain attestations (verified claims about identity, actions, or impact) to inform funding decisions. Instead of relying solely on applications or votes, it incorporates objective signals about a project or contributor. This can include verified impact metrics, peer attestations, or automated oracle data. Ethereum Attestation Service (EAS) and similar protocols enable these verifiable claims.
Advantages
- Objective, verifiable inputs
- Reduces reliance on applications
- Builds persistent reputation
- Composable across platforms
- Resistant to some sybil attacks
Limitations
- Cold start problem for new participants
- Attestation quality varies
- Can create oligarchies
- Privacy concerns
- Gaming through fake attestations
Best Used For
- Recurring grants
- Reputation-gated programs
- Impact verification
- Sybil resistance
Tags
Last updated: 10/1/2024