The killer use case so far in the Web 3.0 ecosystem is supporting public goods via quadratic funding. Let’s start with some definitions.
- Public goods are freely accessibly goods that anyone can access, and one person accessing them does not reduce availability for others (More here).
- Quadratic Funding – The community contributes to the projects they feel should be funded and supported; a matching partner offers funds to match the community’s contributions, but not in a 1:1 match. Instead, the match is more aligned to the sentiment of the community as opposed to the sheer dollar value amount raised by any grantee. The number of contributors matters more than the amount funded. [via https://gitcoin.co/blog/gitcoin-grants-quadratic-funding-for-the-world/] (More here)
Gitcoin has been the poster child for a public goods ecosystem and has funded thousands of projects using Quadratic Funding. The public goods use case that excites me the most is open-sourcing and making freely available multi-lingual educational content (Age 1-18) for children in India. A teacher can put up their educational content as a public good and get funded/paid via the Quadratic Funding route. All the content is always free, but consumers may pay the content creator directly if they want to do so. This is a win-win for both teachers and students. Students get high-quality educational content for free, and teachers get paid directly for the content they create with no middlemen.
I’m very excited about the transformational impact public goods will have via quadratic funding.