A Brief Overview of Vote-Weight
Hello! Here is a brief overview of what vote-weight is and how Gridcoin calculates its value.
Vote-Weight
Important Variables
- Total Network Magnitude = 115,000 (a constant set in code)
- Money Supply = 401,000,000+ (increases over time. For simplicity, let's use 400,000,000 for our calculations)
Vote-weight is the power behind a vote. It is the volume of your voice based on your stake in the network. Gridcoin currently has two main structures which determine a participant's stake:
- Literal stake: The number of GRC held by a participant
- Magnitude: The amount of computing resources a participant contributes to completed data analytic tasks
How much vote-weight is there?
The full formula to determine the network's total vote-weight is:
(MoneySupply) + (((TotalNetworkMagnitude)* (MoneySupply/TotalNetworkMagnitude + 0.01)/5.67))
Because there is currently no way for the pool to vote on the blockchain, pool users are unable to vote with their magnitude. In order to determine the total available vote-weight we must subtract the pool's total magnitude from the total magnitude -- pool magnitude can be considered unavailable when calculating vote-weight. The new formula is:
(MoneySupply) + (((TotalNetworkMagnitude - PoolMagnitude)* (MoneySupply/TotalNetworkMagnitude + 0.01)/5.67))
Plugging this in, we get
400,000,000 + (((115,000-35,000)* (400,000,000)/115,000 + 0.01)/5.67))
This works out to about 450,000,000 total available vote-weight.
If we include the pool magnitude, we get about 470,000,000 total vote-weight.
How is vote-weight balanced?
Part of the formula above defines the following ratio:
Balance:Mag
5.67:1
This ratio was chosen by taking the average of these polls:
This means that for every 1 vote-weight given by a GRC, 1/5.67 vote-weight is given by magnitude.
If there are 400,000,000 total GRC, which equals 400,000,000 vote-weight, the vote weight of all the magnitude will equal 1/5.67 of 400,000,000, or 70,546,737. This is why there is about 470,000,000 total vote-weight when including the pool's magnitude.
How to determine your vote-weight
Your vote-weight is a combination of your GRC balance and your magnitude. You can calculate your vote-weight using the following equation:
YourBalance + (YourMagnitude * (MoneySupply/TotalNetworkMagnitude + 0.01)/5.67)
Did you know that a poll can never achieve 100% total vote-weight participation? This is because there is a good amount of GRC burned for the creation of beacons and for voting. There is also likely a good amount of GRC lost by users over the years.
Thank you for this great overview on vote weight. It really concerns me.
I have been boinc'ing for over a decade and no matter what my grc balance says, I feel and decide as a cruncher. My vote weight on the other hand does not reflect that.
Since I joined the Gridcoin community my avg Magnitude is about 85-90. This means that the income from my first DPoR block alone, which I minted after two month, already overweighs my magnitude in terms of voting weigth.
This feels wrong to me. I'd like to see the Mag:Balance at 50:50 for all times (and also the GRC inflation needs the be compensated once every 6 months or so).
Thanks for the feedback!
I think a more balanced vote-weight ratio would be great.
The economics of GRC will likely be changing soon. We have been working on CBR and using the opportunity to start seriously exploring the hidden potential.
Sanity check: weight given of one magnitude should be higher than weight of one gridcoin.
The vote-weight of an individual magnitude is higher than the vote-weight of an individual GRC, yes. This is because there is 115,000 total magnitude and over 400,000,000 GRC. So each magnitude is multiplied by a number to make the total magnitude vote-weight 1/5.67 of the total GRC.
This is the part of the equation that does that:
(MoneySupply/TotalNetworkMagnitude + 0.01)/5.67))The total vote-weight in the network is heavily weighted in favor of GRC at a ratio of 5.67:1.
So if all the whole network's total vote-weight voted, and all the magnitude voted one way and all the GRC voted another, the GRC would win 400,000,000 to 70,000,000.
Thanks for posting jringo! Seems a number of folks are asking this one... Good to put out on steemit what we dug out of the code!
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If we can get some sort of entity identity card on Internet, we can implement democratic voting weight.