In 2021, Gitcoin and Open Source Collective launched a pilot matching campaign based on a novel new matching model that amplifies the voice of the many. Called – Democratic Funding – the matching algorithm raised almost $95,000 for 55 projects.

Not bad for a first run, but we decided to pause and work in improvements that would enable us to support the larger Open Collective ecosystem.

Here’s how it works  

We’ll raise a matching pool that we’ll then distribute starting in accordance to a crowdfunded donation campaign. The more people who donate to your collective during the campaign, the larger the match. 

It’s like an NPR programming interruption, but with a lot more intelligence and a lot less noise. Developed by Ethereum co-founder Vitalik Buterin, Democratic Funding (also known as Quadratic Funding) formulates a matching multiplier inline with a project’s popularity.

What’s it all mean?

Democratic Funding amplifies a single voice. On a systemic level, it optimizes the distribution of the matching in a more democratic distribution of contribution. “Small” donations can be supercharged (🔥🔥🔥) In past campaigns, a $1 contribution has yielded up to $150 in matching funds.

Democratic Funding can turn individual donations into powerful signals of exponential monetary value.