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.
This podcast talks about the two ways of determining the value of a project; retrospectively, based on reputation, or prospectively through a combination of quadratic funding with tokens and investments, along with the existing, poorly implemented version of federal campaign financing.
DARPA and the US government in Congress introduced a new funding model where funding was based on outcomes rather than efforts. The procurement process required stacks of paper to describe the research project, and the contractors used to getting paid per hour were automatically drawn out due to the lack of a tax code that allowed the use of congressional tax money for a price.
X prize founder, Peter Diamandis, and the government of Abu Dhabi have funded a prize focusing on stem cell grown meats called "Feeding the Next Billion." The goal is to create a solution that can feed the growing population without harming the environment or animal population.
The amount of capital raised by a fund can determine personal wealth generation for the fund manager, with a $10 million fund potentially not being a significant wealth creator unless highly successful, while a $7 to $10 million total fund can lead to wealth creation through high returns.
The speaker suggests that charities should publicly set a standard amount of donation for their cause, instead of constantly asking for less and less. Additionally, leveraging peer pressure may help increase positive impact while reducing the costs of soliciting donations.