9 ♦ · Consensus · Draft
Osmotic Funding
A funding stream to each project that speeds up or slows down as members move their stake.
How it works
Projects apply to a shared funding pool. Members stake tokens on the projects they want funded and can move that stake at any time. Each project's target funding rate is set by its share of total stake and the size of the pool. Instead of jumping to the new rate, the actual stream moves toward the target a little at a time. Payments flow continuously, so a project receives money every block rather than in lump sums. Stake that stays put keeps the stream steady.
Use it when
- Fund ongoing work, such as maintainers or working groups, rather than one-off grants.
- You want project income to be stable and predictable while still following member preference.
- Replace repeated grant votes with a signal members can adjust whenever they like.
Watch out for
- Slow adjustment means a project that loses support keeps getting paid for a while.
- Projects with early stake have a head start that newcomers struggle to overcome.
Example
Osmotic Funding. Osmotic Funding was built by Blossom Labs at the ETHOnline 2021 hackathon on Superfluid streams and conviction voting, then reworked as Fluid Proposals for 1Hive Gardens.