Impact of Changes to Scoring Rules on Fund Allocation

Created 2024-12-19By BeaconLabsVersion 1.0.0

Key Points

In FIL-RetroPGF-2, the scoring rule was changed from the median in Round 1 to the sum. This change made the fund distribution closer to a power-law distribution, increasing the amount of funding received by top projects.

Background

Within the Filecoin ecosystem, a Retroactive Public Goods Funding (RetroPGF) program has been implemented to provide funding for public goods. FIL-RetroPGF-2 was the second iteration of this program. Based on the results of Round 1, the scoring rules were revised with two objectives: to make the voting mechanism easier to understand, and to ensure that while top projects received substantial funding, a wide range of projects—including those in the long tail—would also benefit.

Analysis Method

Dataset

Voting data from badgeholders (voters) in FIL-RetroPGF-2

Intervation / Explanatory Variable

Scoring rules (sum, median, mean, etc.)

Dependent Variable

Distribution of funding amounts allocated to each project

Identification Strategy

The actual fund allocation results using the sum scoring rule in FIL-RetroPGF-2 were compared with simulated counterfactual results under median or mean scoring. In addition, statistical comparisons were made between Round 1 (median) and Round 2 (sum).

Results

  • The sum scoring rule was observed to generate a funding distribution more closely resembling a power-law distribution than the median or mean rules.
  • As a result, compared to Round 1, a larger share of funding went to top projects in Round 2.
  • This change, together with the shift toward assigning absolute funding amounts rather than percentages by badgeholders, may have contributed to a more exponential distribution of funding.

Results

  • Positive
    Scoring rules (sum, median, mean, etc.)
    Distribution of funding amounts allocated to each project

Methodologies

  • Comparison of simulated counterfactual results

Data Sources

  • Voting data from badgeholders (voters) in FIL-RetroPGF-2