Quadratic Funding for the AEZ
The go-to resource for public goods seeking community-driven funding empowering Cosmos builders and introducing new use cases and opportunities to the Atom Economic Zone (AEZ).
Whether you’re a builder or Cosmos enthusiast, this program enables all to take part in driving the future of the AEZ and Cosmos Hub as a whole.
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How Quadratic Funding Works
Quadratic funding (QF) is an innovative on-chain mechanism built to ensure a democratic and equitable allocation of resources.
By leveraging QF, Dora Factory and AADAO are able to revolutionize how public goods receive the funding they need to make a significant impact on the AEZ, all in a fair way.
For BUIDLers
Public goods are the backbone of any thriving blockchain ecosystem, providing the essential tools and resources that enable communities to grow and innovate.
The AEZ QF Fund encourages all builders to bring forward their public good ideas for a chance to get funded support from users and organizations alike.
User Voting
There are two ways you can take part in Quadratic Funding: Contributions, which enables users to vote on and contribute funding to their preferred projects.
And MACI voting, which enables any ATOM staker to give their say without having to contribute their own funds. MACI leverages zkSNARKs to allow anonymous, on-chain voting. Learn More.
Matched Funding
On top of individual user contributions, there’s a total matching prize pool of 80,000 ATOM from the Community Pool, and $200,000 USDC granted by AADAO.
Each round, ATOM-staker contributions are matched up to 8,000 ATOM and $20,000 USDC from this total prize pool, all sent directly to the builders. Learn more
Going in Rounds
The AEZ QF Fund is split into rounds, each with periods for project submissions, community reviews, and project demos to further show off their impact.
During these periods, any ATOM staker can either contribute to a project, or vote with MACI voting. This is then followed by anti-sybil attack checks and final result announcements!
Projects that received match funding
Cosmos-indexer SDK – Round 3
Interchain Info – Round 3
On-Chain registry – Round 3
About the Quadratic Funding Program
The AEZ Quadratic Funding program, mandated and funded by Cosmos Hub governance, is a collaboration between DoraFactory and the AADAO, with $900k in match funding.
The AEZ Quadratic Funding Program, a joint initiative with DoraFactory (the team behind DoraHacks), supports the sustainable development of projects within the Atom Economic Zone (AEZ) or public goods projects that the AEZ relies upon. The program aims to amplify the impact of grassroots support for projects by utilizing a quadratic funding mechanism, which ensures that smaller donations receive a proportionally larger share of matching funds.
What’s QF? Quadratic funding is an on-chain funding distribution mechanism based on the result of quadratic governance, an innovative governance scheme often considered an improvement of the traditional 1-person-1-vote or 1-dollar-1-vote model. With a quadratic voting algorithm, the power of each vote to a single project from a single contributor will decrease, which would prevent funding distribution from the extreme preferences of whale voters. For more details, check out Quadratic Funding & Voting Guide
Cosmos Hub governance mandated this program and allocated 80,000 ATOM (~$700k at the time) to the program as part of proposal #917. This funding was then backed a $200,00 USDC contribution from the Atom Accelerator DAO. This total matching pool will support 10 successive rounds of quadratic funding at AEZ Quadratic Grant, starting from Round 2 to Round 11 over a period of 24 months starting in March 2024.
While projects across several categories are eligible for funding under this program, we have listed some of the key ones below. But importantly, don’t feel limited by these!
Infra & Tooling
Effective developer and user tooling is essential for the Cosmos Hub.
This category supports projects that improve access to and the quality of tools and infrastructure we have available to the Cosmos Hub and AEZ – to improve the experience of both developers and users.
Ideas include:
- Enhancements to governance tooling (UI, voting mechanisms, dashboards)
- Standardization of developer tooling
- Providing vital core infrastructure for the Cosmos Hub
- Creating tools to help users manage their assets
- New tools and dashboards not covered elsewhere
Interchain Public Goods
Investing in core public goods is vital for the interchain ecosystem’s health. This category supports projects that develop and maintain essential infrastructure, including:
- Inter-Blockchain Communication Protocol (IBC)
- Cosmos SDK
- Consensus mechanisms
- CosmWasm
- Open-source libraries
- Relaying and validating
- Smart contract development and testing
- Cryptographic primitives
R&D
Research is fundamental to informed decision-making. This category focuses on applied research to enhance the Cosmos Hub’s economic impact and effectiveness. Possible research topics include:
- Optimization of staking mechanisms
- Tokenomics research for liquidity, price stability, and growth
- Network performance analysis and optimization
- Economic resilience testing and game theory
What are the eligibility criteria for Quadratic Funding?
Generally speaking, most projects can nominate themselves to receive funding from the AEZ Quadratic Funding program run by the Atom Accelerator DAO and DoraFactory.
There are, however some key guidelines and nice-to-haves:
- Applicants must have active Github repos and a video demo of your project (as applicable)
- Applicants must specify what the Quadratic Funding will be used for
- Applicants must have received less than $1.5 million in total from venture capitals and previous grants.
- Projects must not be commercialized or have tokens listed.
- Projects must specifically contribute to the Cosmos Hub and/or the Atom Economic Zone (AEZ) ecosystem.
- There are no restrictions on project categories. Applications can be from either technical or non-technical projects.
- Nice-to-haves:
- Detailed information of projects’ team members
- An actual usable demo with front-end (if applicable)
- Smart contract address if the project is already deployed on a blockchain
Can I apply to multiple funding programs?
Technically, yes—you can apply for funding through more than one of our funding programs. However, the scope of the funding and arrangements will have to be different.
For example, you are developing a new Cosmos SDK module that will add a specific functionality to the Cosmos Hub. Assuming you meet the requirements of the different funding programs and the approval thresholds, you could:
- Get funding via our Regular Grants program to build out the module and integrate it to the Cosmos Hub
- Get funding via Quadratic Grants, once you have completed the above, and have now released the module for any other Cosmos SDK chain to use.
- Get funding via our Ventures Program, once you decide to apply some monetization strategy and wish to further develop the module and productize it
This is just an illustrative example of how a project could be eligible for multiple funding programs. It does not mean that you will definitely be eligible, nor guarantee that your applications will be approved.
I want to apply for a grant but I don’t see my category. Can I still apply?
Absolutely, although we expect to give funding priority to the categories we listed on our website. We are aware some grant ideas might not be covered in the listed categories and as such are committed to process them as well.
How do you prevent double-funding between Regular Grants and Quadratic Funding programs
A team could technically apply for funding through more than one of our funding programs. However, the scope of the funding and arrangements will have to be different.
Several teams have applied and been approved for funding by our Regular Grants program and the Quadratic Funding program. In the example below, we will use DAO DAO.
- DAO DAO received $67,100 in funding via our Regular Grants program in August 2023 to deploy their tooling on Neutron. The grant included the development of some specific functionality and integrations that we requested for their tooling.
- DAO DAO then received $80,000 in funding again via our Regular Grants program in July 2024. This grant was to deploy their tooling on the Cosmos Hub, now that the Hub can host CosmWasm contracts (a requirement of DAO DAO).
- Unrelated to both of these grants, the DAO DAO team applied to our Quadratic Funding program and received $1,060 in matching contributions in Round 2 of the program in June 2024. The scope of that grant was a generic “maintenance and development” of the tooling as an Interchain-wide public good since the tooling is deployed across the ecosystem. The amount of matching contributions from us was determined by the public support they received during that round.
So, the two approved funding requests from our Regular Grants program were for pre-determined amounts for a fixed scope, where our Grants Team worked closely with DAODAO to define and evaluate deliverables.
In comparison, the Quadratic Funding for DAO was for a smaller, undetermined amount. It has a loose scope (since funding amounts are not set) and is generally open-ended in terms of deliverables. It is based solely on community support that projects get during the Quadratic Funding Round.
AADAO does, however, monitor new projects that list themselves for Quadratic Funding. Where it is a team that we have funded through our Regular Grants program, we ask them to clarify the scope of their QF application, and should the scope be exactly the same as the Regular Grant funding they received, working with DoraFactory, we exercise discretion in removing them from the QF Round.
What is your funding policy regarding Interchain public goods such as the Cosmos SDK or CosmWasm?
The ATOM Accelerator is focused on the Cosmos Hub and the ATOM token. Since our funding is not unlimited and because Interchain public goods are often expensive, our stance is to fund some in association with other app-chain grant programs. We have a liaison with these grant programs and will coordinate with them when necessary to fund together Interchain public goods.