Quadratic Funding in Blockchain-Based DAO: Empirical Analysis and Future Prospects

Abstract

This paper provides an in-depth analysis of the application of the Quadratic Funding (QF) mechanism in blockchain-based Decentralized Autonomous Organizations (DAOs) of the QF mechanism. Then, the empirical analysis on the influence of QF on promoting project funding is examined, taking the first round of BNB funding on the DoraHacks platform as the exemplar. The focus has been put on its performance on community voting and fund allocation as well as its real-world impact. Finally, based on the analysis results, the paper proposes improvements to the QF mechanism and presents forward-looking strategies for applying Large Language Models (LLMs) in decentralized decision-making. These insights provide valuable perspectives for understanding and optimizing Decentralized Finance (DeFi).