Quadratic Voting
Snapshot's Quadratic Voting (QV) type goes beyond the conventional approach of simply calculating the square root of each voter's voting power. It presents a more nuanced and democratic framework for decision-making. It emphasizes the number of individual voters rather than the size of their voting power. This voting type provides voters with the flexibility to distribute their voting power across multiple choices.
Let's look at the calculation in this example:
Let's consider there are 3 voters and their VP (voting power):
John has 100 VP
Mary has 50 VP
Dave has 20 VP
Suppose they cast their votes on a proposal featuring four choices, A and B. Two of the choices have an associated incentive:
Option A has a 100 USDT incentive
Option B has a 60 USDT incentive
Here's where voters cast their votes:
John has a total of 100 VP allocated to these options:
50% of 100 on Option A; that is, 50 VP
50% of 100 on Option B; that is, 50 VP
Mary has a total of 50 VP allocated to these options:
50% of 50 on Option A; that is, 25 VP
50% of 50 on Option B; that is, 25 VP
Dave has a total of 20 VP allocated to these options:
50% of 20 on Option A; that is, 10 VP
50% of 20 on Option B; that is, 10 VP
In summary, there is a cumulative voting power of 85 VP in favor of option A, while there is a total of 85 VP in favor of option B. Now, let's analyze the influence of their voting power on the choices by calculating the percentage.
John has a 58.82% influence on option A
Mary has a 29.41% influence on option A
Dave has an 11.76% influence on option A
Whereas on option B,
John has a 58.82% influence on option B
Mary has a 29.41% influence on option B
Dave has an 11.76% influence on option B
The incentive amount assigned to a particular choice is distributed to voters in proportion to the percentage of their influence. Referencing the provided data, the following indicates the USDT incentives each voter will receive:
John will receive 58.82 USDT on option A and 35.29 USDT on option B
Mary will receive 29.41 USDT on option A and 17.65 USDT on option B
Dave will receive 11.76 USDT on option A and 7.06 USDT on option B
The calculation of rewards is determined by the number of voters in proportion to the voting power held by each participant. However, voting power may vary on the voting type used in a proposal. To know more about Quadratic Voting, check out Snapshot docs 👉 https://docs.snapshot.org/user-guides/proposals/voting-types#quadratic-voting
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