Stake Weighting Metrics

Stake weighting metrics define how the amount of staked capital influences a participant's role in the protocol. While standard systems use a linear weighting, more complex systems may apply logarithmic or quadratic functions to prevent concentration of power.

These metrics are used to determine voting power, reward distribution, and validator selection. In derivative protocols, these metrics are crucial for ensuring that the system is not dominated by a few large entities.

By carefully designing stake weighting, protocols can balance the need for capital with the goal of broad community participation. This is a fundamental aspect of decentralized governance and security.