Ranked Choice Voting

Each user has to rank all choices in a desired order. In the first step, votes are counted for each voter's number one choice. The result will show the percentages reflecting how users voted for their first choice only.

Let's look at the calculation in this example:

Let's consider there are 2 voters and their VP (voting power):

  • John has 10 VP

  • Mary has 5 VP

  • Dave has 8 VP

Suppose they cast their votes on a proposal featuring four choices, Alice, Bob, Carol, and David. Two of the choices has an associated incentive:

  • BOB has a 100 USDT incentive

  • CAROL has a 60 USDT incentive

Here's where voters cast their votes:

  • John ranked his choice in this way: 1st - Bob, 2nd - Carol, 3rd - Alice, and 4th - David

  • Mary ranked her choice in this way: 1st - Bob, 2nd - David, 3rd - Alice, and 4th - Carol

  • Dave ranked his choice in this way: 1st - Carol, 2nd - David, 3rd - Alice, and 4th - Bob

In this setup, only the first choice will matter in the reward calculation. In summary, there is a cumulative voting power of 15 VP in favor of option BOB, while there is a total of 8 VP in favor of option CAROL. Now, let's analyze the influence of their voting power on the choices by calculating the percentage.

  • John has a 66.67% influence on option BOB

  • Mary has a 33.33% influence on option BOB

Whereas on option CAROL,

  • Dave has a 100% influence on option CAROL

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 66.67 USDT

  • Mary will receive 33.33 USDT

  • Dave will receive 60 USDT

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 Ranked Choice Voting, check out Snapshot docs 👉 https://docs.snapshot.org/user-guides/proposals/voting-types#ranked-choice-voting-instant-runoff-voting

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