Study on the Quadratic Voting Grant Model (2)

On May 15, DAOeco initiated the Trias Grant #1 Quadratic Voting with the aim of designing a better voting scheme. Now it has some progress.

The following is the second part of the academic report.

Trias Grant based on Quadratic Voting

On the basis of the above research results, we can use Quadratic Voting in some of the activities and issues that the community votes for Trias DAO or in-depth participants like ambassadors. In this way, the community will discuss related topics more seriously.

And also, incentives such as NFTs will promote the community’s discussion and participation.

Applicable scenarios are:

1) Pure donation and supporting programs like academic research, model design, NFT artwork, marketing activities, etc.;

2) Project incubation programs like innovative projects based on the Trias ecology, such as applications, protocols, wallets, browsers, etc.;

3) DAO governance and voting programs like voting based on a certain topic, etc.

According to different initiation methods, Grant can be divided into two categories basically.

Initiating Grant through a project.

When initiating Grant through a project, the institutions can decide whether to fund it on their own considering conditions such as project quality, public opinions.

In this kind of Grant, rewards contain two parts, individual and institutional.

An individual funder can send TRIAS through a personal wallet to fund the project directly on the page. The final number of votes the project receives from the same wallet address is the square root of TRIAS from it. And it will affect the institutional funding bonus, which is based on the Quadratic Voting.

As long as the grant isn’t completed, users can vote multiple times. The system will automatically calculate votes in the end.

The relevant calculation formula to calculate the final funds is as follows:

Assuming that a total of 2 users funded a Grant, the number of TRIAS funded by user A is m, and the number of TRIAS funded by user B is n,

Then,

The number of votes finally obtained by the project is √m+√n;

(1) If the project organizers do not participate, the project will get m+n TRIAS;

(2) If they do, the project will get (√m+√n)² as funding;

The basic rule is that the amount of TRIAS from individual funders is m+n; the amount from institutional funders is (√m+√n)²-(m+n).

For example:

Assuming that there are 5 users who vote for a project, the amount of TRIAS funded by them is 1, 9, 25, 49, and 100.

Then the funds and votes of the project are as follows:

The institution proposing the project can decide whether to fund it considering its quality. If the institution funds the project, the funding amount is calculated in above way. If the organization doesn’t fund it, the project will only get funds from individual users, which is equivalent to a normal crowdfunding model.

Initiating Grant through institutional Sponsor

This type of Grant is suitable for Grants initiated by an organization that set up a sponsoring pool and participated by several projects or many individuals. Typical examples are hackathons, ambassador programs, etc.

In this kind of Grant, the bonus is divided into two parts, individual and institution.

An individual funder can send TRIAS through a personal wallet to fund the project directly on the page. The final number of votes the project receives from the same wallet address is the square root of TRIAS from it.

As long as the grant isn’t completed, users can vote multiple times. The system will automatically calculate votes in the end.

The Grant will eventually receive a bonus from the sponsoring pool based on the proportion of votes. The calculation formula is as follows:

Assuming that the sponsoring pool set by the organization is x TRIAS, projects A and B participated in the activity, and the final votes they obtained are a and b, then,

Funding finally received by Project A will be x*a/(a+b)

Funding finally obtained for project B will be x*b/(a+b)

For example, if the sponsoring organization set up a sponsoring pool of 1,000 TRIAS, four projects A, B, C, and D participate in the event, and they won 5, 10, 20, and 50 votes respectively, then the final bonus situation is as follows:

When multiple users vote on multiple projects at the same time, the condition will be more complicated with a variety of possible voting combinations. In actual operation, we just need to calculate the funding of each user with quadratic rule and add them up to get the final results.

In this kind of grant, personal funding can also be used only for counting votes, so the TRIAS they funded will be returned after the voting.

To conclude, the calculation method of Trias Grant is not only fairer but also can prevent Sybil attack in Quadratic Voting. It is applicable for open crowdfunding and is in line with the original intention of blockchain decentralization.

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