stakevoting

Stakevoting is a voting mechanism in which a participant’s influence over decisions is proportional to the amount of stake they hold in a given asset or system. In contrast to one-person-one-vote schemes, stakevoting ties voting power to ownership or risk-bearing, so larger stakers have more weight in outcomes.

In blockchain and decentralized governance, holders of a network’s token can stake those tokens to participate in decision making. Stake can be used directly to vote on proposals or can be delegated to representatives or committees through a process called delegation or liquid democracy. Staking typically requires locking up tokens for a period, during which participants may earn rewards and may face penalties if validators or the system’s rules are violated.

Typical governance processes involve proposing changes, a voting period, and then tallying votes weighted by stake. Some systems require a minimum quorum or a supermajority threshold for adoption. In delegated models, token holders entrust their voting power to others who vote on their behalf. The design often includes transparency about votes and proposals and mechanisms to update governance rules over time.

Benefits of stakevoting include alignment of incentives between token holders and the system’s long-term success, enhanced liquidity in governance, and resilience against short-term manipulation. Critics point to potential wealth concentration and governance capture by large holders, low voter participation, and complexity that can slow decision making. Overall, stakevoting is a common feature of modern proof-of-stake networks and other asset-backed governance systems.