Square root weighting is a method used to assign influence or voting power in a system, where a participant’s weight is proportional to the square root of their holdings or stake. This approach aims to distribute influence more equitably than linear weighting, where larger holdings confer proportionally greater power. It reduces the dominance of extremely wealthy actors while still acknowledging their contribution. This method is applied in governance to promote broader participation.
Context
In decentralized autonomous organizations (DAOs) and proof-of-stake blockchains, square root weighting is considered a mechanism to mitigate whale dominance and promote more distributed governance. While it offers a compromise between one-person-one-vote and purely proportional systems, debates continue regarding its effectiveness in preventing plutocracy and ensuring fair representation. Experimentation with various weighting functions remains an active area in protocol design.
New non-linear stake weighting models diminish the marginal utility of large pools, structurally incentivizing stake distribution for robust decentralization.
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