What is a Flow State Allocation Strategy?
In Flow State, an allocation strategy determines how funds are distributed to contributors in real time, based on defined rules or metrics. These strategies are tailored to support different team dynamics, reward structures, and community goals, making it easier to align funding with your team’s unique needs and values.
Flow State Allocation Strategies
Here’s a quick look at the allocation strategies Flow State currently supports:
1) Streaming Quadratic Funding (SQF)
- Description: SQF is designed to support collaborative funding by amplifying contributions from a large number of backers. The more people that support a project, the greater the funding it receives.
- Ideal For: Ecosystems focused on public goods or projects that benefit from broad community support, like open-source projects or shared community resources.
2) Flow Council Voting
- Description: Council Voting gives a selected group of trusted members the ability to allocate funds based on their assessment of contributor impact. It’s a flexible way to ensure resources go to high-impact contributors without needing constant community-wide input.
- Ideal For: Teams or DAOs that want to prioritize high-value contributions, especially where contributions may vary greatly in impact.
3) Contribution Weighting
- Description: Contribution Weighting assigns real-time points to contributors based on specific actions, like completing projects or referring new members. Funds are then distributed based on each contributor’s point total, ensuring rewards align with actual contributions.
- Ideal For: Ecosystems where it’s important to reward specific contributions and incentivize ongoing engagement, without the need for frequent peer reviews.
4) Equal Split Allocation
- Description: This strategy divides funding equally among all eligible contributors, providing each person with a fixed share of the funding river. It’s a straightforward approach that emphasizes equality and simplicity.
- Ideal For: Early-stage teams, small groups, or communities focused on shared goals, where equal distribution is more beneficial than performance-based rewards.
Choosing an Allocation Strategy
Each strategy in Flow State is designed to fit different types of ecosystems and goals, from collaboration-focused teams to high-impact communities. You can start with one strategy and adapt as your team evolves, ensuring your funding approach stays in line with your values and objectives.
Flow State’s allocation strategies provide flexibility and clarity, enabling you to distribute resources effectively based on your community’s unique goals and priorities. Whether you prioritize broad support, impact-driven contributions, or simplicity, there’s a Flow State strategy to fit your needs.