# Voting Power

Last updated

Last updated

Voting power is weighted based on the amount of sBTC and STX tokens staked by a voter. The more tokens a user has staked to the protocol, the greater their voting power and influence in the decision-making process.

The specific formula for calculating voting power is as follows, given:

$H_{s}$: A users stSTX holdings $H_b$: A users BTC holdings $V_s$: Price of STX $V_b$: Price of BTC $R_{sb}$: Value Ratio of STX to BTC

The ratio of STX value to Bitcoin value is determined by the STX/BTC swap price determined by an oracle.

$R_{sb} = \frac{V_b}{V_s}$

Voting power is then determined by:

$P_v = \sqrt{H_s + R_{sb} \cdot H_b}$

If a user holds .01 stBTC and 0 stSTX, with a STX price of $0.50 and with a BTC price of $26,000, then:

$P_v = \sqrt{0 + \frac{26,000}{0.5} \cdot 0.01 } = 22$

The square root formula is used to ensure that voting power is distributed in a relatively proportional manner, while also preventing any one user from dominating the decision-making process. This is intended to promote decentralization and ensure that the protocol is governed in the best interests of the entire community.

The voting power formula is subject to change based on the governance decisions made by the community through the voting process. For example, the community could vote to adjust the formula or to implement a different mechanism for weighting votes.