A stake weighting function is a mathematical rule or algorithm that determines the amount of influence, voting power, or reward a participant receives in a proof-of-stake blockchain or decentralized governance system, based on the size of their staked assets. This function is critical for maintaining network security and incentivizing honest behavior among validators. It directly impacts the distribution of control and economic benefits within the protocol. The function helps to align participant interests with network integrity.
Context
The design of an effective stake weighting function is a central concern in proof-of-stake consensus mechanisms, directly influencing decentralization, security, and the economic viability of a blockchain. Different functions, such as linear, logarithmic, or square root weighting, are explored to optimize these properties and prevent excessive centralization of power. Ongoing research seeks to refine these functions to create more robust and equitable digital asset ecosystems.
New non-linear stake weighting models diminish the marginal utility of large pools, structurally incentivizing stake distribution for robust decentralization.
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