Yep. QF basically assumes that subsidies are "free money", as discussed in the article: https://jonathanwarden.com/quadratic-funding-is-not-optimal/#free-subsi

Yep. QF basically assumes that subsidies are "free money", as discussed in the article: https://jonathanwarden.com/quadratic-funding-is-not-optimal/#free-subsidies https://jonathanwarden.com/quadratic-funding-is-not-optimal/... In the original paper, the authors acknowledge this is a problem: "...once we account for the deficit, the QF mechanism does not yield efficiency.