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.