Voting Power
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:
: A users stSTX holdings : A users BTC holdings : Price of STX : Price of BTC : 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.
Voting power is then determined by:
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:
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.
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