Quadratic funding provides greater subsidies to projects receiving micro-donations from a larger number of people than those receiving larger donations from fewer donors. It helps in fundraising for public goods through micro-donations, which is a more efficient way than traditional fundraising techniques.
Quadratic Funding is a mechanism that allows anyone to donate money to public goods in a way that is powerful in funding projects that benefit the greater population as opposed to focusing on private goods like a car.
Quadratic funding subsidy is greater for a project that received one dollar from one hundred people than one that was given one hundred dollars from two people. The method requires identity models to prevent fraudulent activities, but it remains anonymous for donations made to each project.