Quadratic Voting

If you have been in the crypto space for a while you may have heard of Quadratic Funding as described by Ethereum co-founder Vitalik Buterin in 2019. Quadratic Funding is widely accepted as the mathematically most optimal way to fund public goods in a democratic community.

In the crowdfunding model, quadratic funding matches the total pooled funds of a crowdfunding raise and distributes it according to the quadratic funding algorithm based on the number of contributions rather than the total amount of funds raised.

When the quadratic funding model is applied to decentralized voting it moves some of the voting power away from whales and other centralized power holders and redistributes some of their voting power closer to the wishes of the majority.

In essence, the algorithm redistributes a portion of the votes to the decision that the majority of participants engaged in so that the overall result is not solely based on the majority of total votes – remember, each NFT and MFI token holder can cast multiple votes if they own two (2) or more NFTs or MFI tokens because each NFT and MFI token held in a DeFi wallet represents a vote.

This prevents one whale or a group of whales from imposing their will solely through the action of buying a very large number of NFTs or MFI tokens for the purpose of their votes benefiting themselves personally rather than benefitting the interests and wishes of the wider MetFi community.