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Polynomial Voting Rules

Author

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  • Wenpin Tang
  • David D. Yao
Abstract
We propose and study a new class of polynomial voting rules for a general decentralized decision/consensus system, and more specifically for the PoS (Proof of Stake) protocol. The main idea, inspired by the Penrose square-root law and the more recent quadratic voting rule, is to differentiate a voter's voting power and the voter's share (fraction of the total in the system). We show that while voter shares form a martingale process that converge to a Dirichlet distribution, their voting powers follow a super-martingale process that decays to zero over time. This prevents any voter from controlling the voting process, and thus enhances security. For both limiting results, we also provide explicit rates of convergence. When the initial total volume of votes (or stakes) is large, we show a phase transition in share stability (or the lack thereof), corresponding to the voter's initial share relative to the total. We also study the scenario in which trading (of votes/stakes) among the voters is allowed, and quantify the level of risk sensitivity (or risk averse) in three categories, corresponding to the voter's utility being a super-martingale, a sub-martingale, and a martingale. For each category, we identify the voter's best strategy in terms of participation and trading.

Suggested Citation

  • Wenpin Tang & David D. Yao, 2022. "Polynomial Voting Rules," Papers 2206.10105, arXiv.org, revised Jan 2024.
    • Handle: RePEc:arx:papers:2206.10105
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    File URL: http://arxiv.org/pdf/2206.10105
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    Cited by:

    1. Wenpin Tang & David D. Yao, 2022. "Trading under the Proof-of-Stake Protocol -- a Continuous-Time Control Approach," Papers 2207.12581, arXiv.org, revised Jun 2023.
    2. Wenpin Tang, 2023. "Trading and wealth evolution in the Proof of Stake protocol," Papers 2308.01803, arXiv.org, revised Aug 2023.

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