The .vote consensus mechanism is the means through which token stake is used to weight voting power in each of the miniDAOs in the finance.vote ecosystem. It utilises a pyramidic stacking mechanism to normalise vote power across a voting population, ensuring that large token holders do not have an extremely out weighted voice in the system.
Users are stacked in layers into staking slots according to the Fibonacci sequence.
This status dynamic ensures that token holders can utilise their wealth to increase their influence, but not so unduly that they dominate the system to the point of corruption. The interplay between users’ $V balance will ensure that vote power is optimised to avoid plutocracy.
A single user with the highest token stake will have the highest weighted voice in that miniDAO. Token balances thereafter determine which tier of the consensus mechanism that they sit within. Each tier has a number of staking slots, which are populated by users based on their staked token balances. Each tier has the same staking power, but is shared between a greater number of people. The tiers scale in slot size out to infinity.
For example, a user with 100,000 $FVT tokens staked on the $FVT miniDAO has the highest stake on that node. The next nearest token balances are 95,000, 90,000 and 80,000. The 95,000 and the 90,000 stakers occupy the second staking tier and the 80,000 staker takes the third slot along with two others. The 100,000 staker has 1,000 $V and the 95,000 and 90,000 stakers have 500 $V, and next tier down have 333 $V and so on.
This mechanism incentivises users to purchase $FVT to stake in their chosen miniDAOs to raise their influence in the social consensus formation process, but mitigates plutocratic power formation.