The Idena team suggests community-based co-funding of projects initiated by Idena users and supported by its community.

Inspired by quadratic funding, the proposed co-funding scheme is a prototype for a smart contract on the blockchain. At the moment, we would like to test the scheme viability (efficiency and resistance to abuse).

The application procedure will be running from March 30, 2020 till April 22, 2020 (during the Idena epochs #41 and #42).

The Idena community decides which work should be funded and which amount of coins should be granted from the Idena foundation wallet. Community members vote for the work with their donations.

The Idena foundation co-funds the rest of the sum:

Total funding = Community donations + Idena foundation co-funding

The number of the project’s supporters is more important for the sum of the Idena co-funding than the size of the donations: A lot of small donations result in a larger co-funding than few big ones (see the formula and calculation examples below).

How to apply

Any Idena user may propose any project. For a project to be initiated, its description should be provided in the Idena Discord channel. The project may be done by anyone: An open auction should be launched to choose the winner. All the auctions expire by the next validation at 13:30 UTC on April 22, 2020. There should be a donation wallet created by a trusted Discord member (custodian). Anyone can support the project by sending their donations to the wallet. The minimum number of supporters required is 2% of all validated Idena users. The Idena team will match the funding according to the co-funding formula. Anyone who wants to do the work should bid their price for the work in the auction. The person bidding the lowest price gets a chance to earn the collected funding. When the bid price is equal or below the total funding for the work, the auction participant which has suggested the price is considered to be the winner and may start doing the work. If by the end of the auction the lowest bid price is higher than the total funding for the work or the number of the project’s supporters is less than 2% of all validated Idena users, all donations to the project are returned back to the donors. Once the work is done and accepted by the supporters who donated for the project, the donation wallet is unlocked by the wallet custodian.

Call to action

We invite all the members of the Idena community to join the testing of the proposed co-funding scheme. You are welcome to start projects, criticize or support with donations initiatives of other community members. If the scheme proves to be working, the Idena foundation co-funding will be implemented at the protocol level.

The rules of the Idena community-based co-funding

Idena community members send donations to the donation wallet. Idena co-funds the work adding funds to the wallet according to the Idena foundation co-funding formula:

R — Required fund for the proposed work discovered with auction bid price

n — Number of donors (Idena validated users)

d₁..n — Donations collected from donors

D = sum(dᵢ) — Community donations

Idena foundation co-funding

F = min( sum(dᵢ ⁰·³³³³³³³)¹·⁶⁶⁶⁶⁶⁶⁶, R-D, 5×D)

Total funding

F+D

You can find calculation examples of Idena co-funding here. All calculations are performed using data of the current epoch (the validation status of the donors, the number of validated Idena users).

The more validated users support the proposed work the larger fund will be granted by the Idena foundation. Donations of non-validated identities are not considered when calculating the Idena foundation co-funding.

The Idena foundation co-funding can not be more than 5 times the sum of the collected donations.

***

Idena is a novel way to formalize people on the blockchain. It does not collect or store personally identifiable information. Idena proves the humanness and uniqueness of its participants by running an AI-hard Turing test at the same time for everyone around the globe.

The Idena blockchain is driven by proof-of-person consensus: Every node is linked to a cryptoidentity, one single person with equal voting power.