Since the opening of the first batch of funding applications, the EOS ecological crowdfunding platform Pomelo has received nearly 200 project funding applications, covering multiple categories such as DeFi, wallets, NFT, and infrastructure.

As of the publication of this article, there are only 4 days left before the end of the submission of funding applications by the project party, and only 7 days left before the end of the end of users donating EOS for their favorite projects.

Project parties who have not yet submitted applications and users who have not donated to their favorite projects can seize the last time to help the EOS ecology regain prosperity.

As we all know, in the public chain ecology, investment funds play an important role in promoting the prosperity and development of the ecology. The foundation can provide financial, technical, marketing and other supports for the ecological development.<Success-feedback-success>A virtuous circle can promote the vigorous development of the public chain ecology.

Inspired by Gitcoin, Pomelo aims to develop into a self-funded, community-driven portal for funding EOSIO-based projects. Previously, the EOS Foundation donated US$500,000 to Pomelo to fund the first batch of projects, and this round of fund allocation will be carried out in the form of secondary financing.

For friends who do not understand secondary financing, there may be doubts:

• What is secondary financing?

• How will the funds be distributed?

• Why is Quadratic Financing the Mathematical Best Way to Fund Public Goods in a Democratic Community?

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What is secondary financing?

The English expression for secondary financing is Quadratic Funding.

In 2018, Ethereum founder Vitalik Buterin co-authored a paper with Harvard University's Zoë Hitzig and Microsoft's Glen Weyl:

Liberal Radicalism: A Flexible Design For Philanthropic Matching Funds

In this article, Vitalik Buterin discusses how to solve the financing problems faced by public products. The solution is quadratic financing (Quadratic Funding, some Chinese literature is also marked with Quadratic Financing, but almost all relevant English literature uses the former term).

If you want to know more about Quadratic Funding, and want to further understand the mechanism of secondary financing from a mathematical perspective, there are currently a few professional articles available in the Chinese field, and I recommend reading "Quadratic Funding: Quadratic Funding: Theory, Practice and Directions for Improvement".

To put it simply, the Quadratic Funding mechanism makes the model of raising funds for public products into two parts:

• The first part is the funds provided by direct individual supporters, that is, users donate directly to the project party.

• The second part is a matching pool composed of funds supported by institutions and individual philanthropists. According to the number and amount of user funding received by the project party in the first part, it is calculated according to the secondary financing method, and the funds in the matching pool are allocated to each project party.

The calculation of the secondary financing method is to record the square root of the funds voluntarily donated by users to the project party as donation points, for example:

• Little A donates 1 EOS to a certain project, then the project will accumulate 1 point;

• Little B donated 100 EOS to a certain project, then the project will accumulate 10 points;

• Little C donated 1600 EOS to a certain project, then the project will accumulate 40 points...

By analogy, the square of the sum of points is the amount of funds that the project party can obtain from the matching pool, for example:

• Little A, Little B, and Little C donated 1 EOS, 100 EOS, and 1600 EOS to a project party respectively, and the project party got 51 points, so the funds they got were 2601.

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Successful practice of secondary financing

The concept of secondary financing was first proposed by Vitalik Buterin, the founder of Ethereum, Zoë Hitzig of Harvard University, and Glen Weyl of Microsoft. Therefore, secondary financing is very mature in the application of Ethereum, and Gitcoin is one of the typical representatives.

There is no doubt that Gitcoin has become an indispensable part of the Ethereum ecosystem.

Well-known projects that have obtained funds through Gitcoin include: Tornado.cash, Uniswap, 1inch.exchange, Dune Analytics, MolochDAO, etc. The Gitcoin Grand list of each issue is invested with real money, and some new projects may not be popular at the initial stage of operation. It is very high, but it stands out in Gitcoin with its innovative mechanism and community support, and has achieved rapid development.

If we look back at the Gitcoin funding list for Phases 1 to 8, we will find that well-known DeFi projects have appeared here. At present, many media are also very concerned about the development of each round of Gitcoin project funding and make in-depth reports. You can It is said that Gitcoin is the first choice for everyone to discover early high-quality projects.

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The significance of Pomelo's introduction of secondary financing

We know that Pomelo is inspired by Gitcoin in the Ethereum ecosystem.

In the open source blockchain world, project codes can be easily copied, but outstanding ideas and ideas cannot be copied. Why other public chains can only passively follow the DeFi and NFT hotspots created by Ethereum, at its core, is probably because they do not have a sustainable innovation capability. This kind of continuous innovation ability is not created out of thin air, it needs an "organic soil".

With the more fair and reasonable mechanism of secondary financing, Gitcoin has played a key role in Ethereum to incubate and cultivate "new seedlings" for the entire ecology selflessly.

Based on the successful operation of Gitcoin in the Ethereum ecology, the EOS Foundation fully realizes that if the EOS ecology needs to flourish and develop, it cannot rest on its laurels and only focus on pulling carts without looking up at the road.

The EOS ecology also needs an "organic soil" to selflessly incubate and cultivate "new seedlings" for the entire ecology. Therefore, the EOS Network Foundation chose Pomelo and promised to provide $500,000 in the first round of financial support as a matching pool partner to ensure its successful support of developers, enterprises and individuals, so as to make the EOS ecosystem develop and mature.

The EOS Network Foundation uses the Quadratic Funding mechanism of the Pomelo platform to allow EOS token holders to decide how to allocate public funds, rather than the EOS Network Foundation itself. Really let the funds go where everyone wants, and give full play to the maximum value of its application.

In addition, in addition to the Ethereum ecosystem, the Quadratic Funding mechanism has been widely adopted by many major blockchain ecosystems: Filecoin, BSC, Solana, HECO, Flow, etc. So far, quadratic funding mechanisms have proven to be effective in allocating public funds to support open source software projects (Open Source Ventures) and more generally public projects (Public Goods). Math the best way.

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The first round of funding for Pomelo has started

The Pomelo platform will regularly carry out a round of donation activities. The first round lasts about 23 days and is currently in progress. After each round starts, various projects will submit their ideas and plans to the platform one after another. The platform It will be reviewed, and projects that meet the funding conditions will be displayed on the platform for community investors to choose and fund.

Entering the Pomelo official website, we can find out how many donations from community members they have accepted for projects currently approved by the Pomelo platform, and the share of the expected $500,000 in sponsorship funds that can be matched:

• pomelo.io

Click on each specific project page to see their webpage, what they do, donation address, team members and other information.

The Pomelo project application channel will be closed on November 28. Project parties who have not yet submitted an application can click the link below to view the detailed tutorial for project submission:

Click to view tutorial

The Pomelo user donation channel will be closed on December 1st. Users who have not donated to their favorite projects can click the link below to view the detailed tutorial of donation:

Click to view tutorial

After December 1st, the Pomelo team will analyze the results and allocate funds from the matching pool to eligible projects that pass KYC.

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• The form of community donations can not only obtain financial support, but also a good opportunity for community exposure for project parties, thereby attracting more investors to choose investment projects. This form promotes the activity and prosperity of the EOS ecology, forming a virtuous circle of development.

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• epilogue

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The fruits of each season of Pomelo will help make EOS a thriving ecosystem once again.

EOS is rapidly becoming an ecosystem full of infinite opportunities. The return story of EOS is taking shape. More EOS ecology is exciting. Please look forward to the follow-up news of EOS Network Foundation.

For more information about how the Pomelo platform works, the review mechanism and project reporting, please visit the following link:

https://feather-nutmeg-4f2.notion.site/Pomelo-Wiki-05383dce431c431faf8ab0f5fcef94ef

Of course, if you encounter any problems during the donation operation, you can also contact us for help in the following ways.

EOS Network Foundation Chinese Medium:

https://medium.com/@EOSNetworkFoundation

Discord invitation link:

https://discord.gg/Mc6MGrJmAp

https://discord.gg/eos-network

EOS Network Foundation Telegram Chinese Subscription Number:

https://t.me/EosNetworkFoundation_CN

EOS Network Foundation Chinese Telegram Group:

https://t.me/EOSCN

EOS Network Foundation English telegram group:

https://t.me/EOSNetworkFoundation