HODLpac Donation Rounds
TLDR: Quadratic funding for politics.
For the 2022 election cycle, HODLpac will use a quadratic funding system to make donations to candidates for Congress. Like Gitcoin Grants but for politics.
For an explainer on quadratic funding, the mathematically optimal way to fund public goods in a democratic community, see: https://wtfisqf.com/
- 1.Members of the crypto community participate in HODLpac's Donation Rounds to donate directly to candidates they want to support, using HODLscore data as a guide. These donations are "earmarked donations," passed through HODLpac from individual donors to candidates.
- 2.HODLpac's traditional PAC treasury functions as the quadratic funding matching pool, with a certain amount of money from the treasury designated for matching earmarked donations to endorsed candidates (see Endorsement Process for more info) during each Donation Round.
Thus, HODLpac's donation decisions are made by the community, algorithmically, according to the quadratic funding formula.
Quadratic funding enables HODLpac to:
- 1.Achieve governance minimization and credible neutrality since HODLpac's donation decisions are made by an algorithm based on individuals' earmarked donations.
- 2.Be maximally effective by increasing the amount of money we’re able to raise for candidates. Candidates can receive up to $2,900 from each individual donor per election + the $5,000 max contribution from HODLpac per election (rather than only $5,000 from HODLpac itself). Moreover, individual donors can only support candidates that align with their other political beliefs, if they choose.
HODLpac has three matching pools - a Single Issue pool, a Democratic pool, and a Republican Pool. This allows for partisan-yet-crypto-focused donors to HODLpac to ensure their funds aren't supporting candidates from the opposite political party.
The Democratic and Republic pools match earmarked donations to endorsed Democrats and Republicans, respectively. The Single Issue pool matches earmarked donations to all endorsed candidates.