---
description: >-
  These guides are intended to provide clarity on how each funding model
  operates on the FunDeSci platform, highlighting the unique aspects and
  participant actions required for each.
---

# Guide to FunDeSci Funding Models

### **Crowdfunding Model**

#### **Definition and Purpose**

Crowdfunding on FunDeSci is a collaborative funding mechanism that allows researchers to present their projects to a wide audience. Contributors can fund these projects, and in return, they receive unique commemorative NFTs that signify their support and participation.

#### **Key Features**

* **Inclusive Funding**: Every contribution is valuable, regardless of size. This inclusive approach ensures that a wide range of projects can seek and receive support, not just those that meet specific funding goals.
* **Commemorative NFTs**: Contributors receive digital tokens as a symbol of their support. These NFTs are not just proofs of contribution but can also hold value as digital collectibles.
* **Keep-It-All Funding**: Projects receive all the contributions made by the end of the funding period, regardless of whether the total funding goals were met.
* **Project Interaction**: Contributors can engage with project creators, offer feedback, and follow project updates, fostering a community around each project.

#### **How It Works**

1. **Project Submission**: Researchers submit their projects with detailed information and a clear funding target.
2. **Community Support**: The community funds the project by contributing any amount they choose.
3. **NFT Minting**: For each contribution, an NFT is minted and sent to the contributor's wallet as a token of appreciation and participation.
4. **Project Implementation**: Once the funding period concludes, the project creators receive the funds to implement their research, regardless of the total amount raised.



### **Fundraising Auction Model**

#### **Definition and Purpose**

The Fundraising Auction is a competitive funding model where researchers auction NFTs representing their projects. This model creates an engaging and dynamic environment where contributors bid on projects, with the highest bidder winning the NFT.

#### **Key Features**

* **Competitive Bidding**: Contributors place bids on project NFTs, driving the price up and creating a market value for the project.
* **All-or-Nothing Funding**: Projects only receive funds if the auction goal is met within the set timeframe. If the goal is not met, the project does not receive any funds, and contributors are not charged.
* **Project Representation**: The NFT serves as a digital representation of the project and may encapsulate its goals, benefits, and future potential.
* **Engagement and Anticipation**: The auction format adds an element of excitement, encouraging more engagement from the community.

#### **How It Works**

1. **Project Minting**: Researchers mint an NFT representing their project, which is then listed for auction.
2. **Auction Participation**: Contributors bid on the project NFT. The auction remains open until the specified closing time.
3. **Winning the Auction**: At the end of the auction, the highest bid wins the NFT. If the reserve is met, the project is successfully funded.
4. **Project Implementation**: Upon successful funding, the project creator receives the funds to carry out their research.

#### **Considerations for Contributors**

* **Bidding**: When you place a bid, ensure it is higher than the floor price and the current highest bid.
* **Auction End**: Keep track of the auction timer; if you are the highest bidder when the auction concludes, you will win the NFT.
* **Wallet Preparation**: Have your wallet prepared with sufficient funds to be ready for the bidding of the auction to complete your transaction.
