Voting Power
The weight assigned to a validator or governance participant when votes are counted.Definition
The weight assigned to a validator or governance participant when votes are counted.Why it matters
Governance concepts explain how decentralized networks coordinate changes and collective decisions.How it works
Voting power is determined by a contract querying the user’s current token balance at the time of a vote. If delegation is allowed, the contract adds the delegated power to the user’s own balance before finalizing the total weight.Real-world example
In Compound, token holders can delegate their voting power to delegates who vote on their behalf, allowing for a more professionalized governance process.Advantages
- Reflects economic interest
- Enables delegation
- Incentivizes long-term holding
Limitations
- Risk of plutocracy
- Concentration of power
- Potential for vote selling
Common misconceptions
- People think voting power is always equal for every person, but it is almost always tied to assets. Some believe delegation means losing ownership of tokens, which is incorrect.
Related knowledge
- Blockchain — term
- Cryptography — term
- Web3 — term
Canonical knowledge ID:
glossary:voting-power