Quadratic Voting Models
Quadratic Voting Models are a governance design where the cost of a vote is the square of the number of votes cast. This structure aims to balance the influence of large token holders against the preferences of a broader community of smaller participants.
While one-token-one-vote systems can lead to plutocracy, quadratic voting increases the cost of acquiring more votes, making it exponentially more expensive to exert disproportionate influence. This encourages participants to vote on issues that are most important to them rather than just accumulating voting power.
It promotes a more democratic outcome by giving weight to the intensity of preferences across a larger group. This model is increasingly used in decentralized autonomous organizations to foster more equitable decision-making processes.