Continuous Common Good Funding

Common Goods and Funding Schemes

Since the early stage of civilization, people have been innovating for common goods. The common goods we now take for granted were mostly ingenious inventions of its time — city parks, libraries, dams, universities, hospitals, the Web, and recently, a large number of open source software.

An In-depth Discussion on Bonding Curves

In this article, I describe Continuous Common Good Funding. The scheme provides a funding mechanism for permissionless, instantaneous contribution and participation of projects that build common goods. The word “continuous” means that the token supply and price are continuous on a bonding curve.

  1. Burn (sell)
  1. Programmatic token issuance and price curve
  2. Permissionless token minting
  3. Fair mint

Continuous Common Good Funding (CF)

Assume there is a secondary market (e.g. a Uniswap liquidity pool) of a project token minted from a bonding curve. At any given supply, price discovery happens on the secondary market. There are two possibilities. First let’s say the price on the curve is Pc, the price on the secondary market is Ps.

Continuous Public Good Funding

When a common good mints token from a bonding curve in a way as described above, the common good can be funded by the curve when people buy their project token from the bonding curve. We then call the common good a Continuous Common Good. The supply of the project token and mint price of the token are totally subject to the curve.

  1. Monotonically increasing curve (mostly)
  2. Infinite token supply
  3. Supply controlled by curve price
  4. Directly funding projects
  5. No pre-minted token

Utility of Continuous Common Good Tokens (Project Tokens)

A common good funding mechanism can be independent of the nature of project tokens. A project token can be defined by the organization itself, based on the utility of the token. Some examples of simple project token utilities are:

  • Contribution Badges / Memes
  • Protocol / Network Utilities
  • Security Token
  • More to be invented…

Examples of Continuous Common Goods

  • Open Source Projects
  • Non-profit organizations and public good projects will be natural continuous common goods.
  • Non-profit Organizations
  • Blockchain Protocols
  • DAOs

Continuous Common Good Funding and Retroactive Public Good Funding

Continuous public good funding is a way to implement retroactive public good funding.

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