Quadratic finance aspires to match citizen’s funding preferences with funding needs identified by governments in a three-step process. First, a public authority issues a list of investment projects. Second, citizens invest money that they have initially paid as taxes in projects of their choice following a Quadratic Voting mechanism (more about Quadratic Voting later). The square root of each citizen’s investments per project is summed up and squared by the authority which then invests that amount in addition to the investments of the citizens into the investment project in the third step.
Proponents: Eric Posner, Glen Weyl, Vitalik Buterin
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