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Rewarding Impact
with Hypercerts

To solve the challenges we face in this century, we need scalable and sustainable financing models for public goods that reward contributors for the positive impact they create.

Hypercerts are a tool to build scalable retrospective reward systems for impact.

Hypercerts are like carbon credits, but on any impact vector. While carbon credits are not perfect, they allow to reward projects for positive outcomes retrospectively, i.e. when these outcomes are observable. hypercerts enable this for other impact areas, such as education, healthcare, AI safety and open source software.

Recurring income for public goods

Retrospective funding rewards projects for the impact they have created. As long as projects create impact, they can create hypercerts for the impact and get retrospective rewards for these. In contrast to today’s grant systems, projects have recurring income streams.

High-potential public goods

Buying hypercerts retrospectively allows funders to increase their funding in relation to the impact created, incentivizing projects to maximize their positive impact. Funders benefit from a large positive impact and incur project risks. Retrospective funding encourages high-risk/high-potential public goods.

Retrospective funding shouldn’t be used in cases where a significant negative impact is possible since a nongovernmental, permissionless framework can’t impose retrospective penalties for negative externalities.

De-risking impact-funding

Retrospective funders allocate their funds more effectively as they face less uncertainty about the impact projects had. This is especially important when the impact of public goods doesn't increase linearly. Retrospective funders wouldn’t waste funds by rewarding a project for building half a bridge.

Using the same hypercert primitive, funders and projects create a scalable, interoperable and transparent funding environment for innovative public goods.

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hypercerts.xyz originated from the communities of Funding the Commons, Schelling Point, and the Sustainable Blockchain Summit and we are grateful to be part of these communities.

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