Rohit Malekar

WTF is Cluster-Matching QF?

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descriptionModern mechanism design assumes independent agents, leaving Quadratic Funding vulnerable to collusion and over-coordination from pre-existing participant relationships. Cluster-Matching QF, introduced during GG18, addresses these power imbalances by accounting for social ties in funding allocation. This article recaps how QF works, examines its vulnerabilities, and contrasts outcomes before and after Cluster-Matching is applied.
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1 min read

WTF is Cluster-Matching QF?

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Last Updated: February, 2024

Modern mechanism design often assumes that agents are independent and self-interested with no prior ties for cooperation. This can make mechanisms susceptible to unintentional over-coordination or deliberate collusion. As a result, public funding models like Quadratic Funding (QF) face challenges in scaling. With the introduction of Cluster-Matching QF during GG18, we have started to address the issue of power imbalances in QF models arising from pre-existing participant relationships. In this article, we will discuss the following:

  • Recap how QF works
  • Understand QF’s vulnerability to over-coordinated actions
  • Understand the need for Cluster-Matching QF
  • Contrast results between QF and Cluster-Matching QF

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