8.3 Voting Mechanisms

NXT employs a hybrid voting architecture that blends token-weighted tallies with optional mechanisms—quadratic weighting, rank-choice ballots, conviction voting—to suit different proposal classes. The guiding principle is proportional influence tempered with anti-capture safeguards.

Token-Weighted Default Standard proposals such as UI tweaks or minor parameter shifts use classic ERC-20 balance voting: one token equals one vote. Balances locked in staking contracts count via signed checkpoints, ensuring validators retain voting voice. Delegated tokens contribute to delegate weight immediately upon snapshot and remain immobilised until the vote closes, preventing mid-vote re-delegations that could game outcomes.

Quadratic Extension For social or community-fund allocations where wealth concentration could overshadow grassroots sentiment, proposers may opt for the quadratic module. Here voting weight scales with the square root of token count, reducing marginal influence of large bags without fully disenfranchising them. Activation requires an explicit proposal choice at Draft stage, and the decision itself must pass with standard token weight, avoiding Trojan-horse use of quadratic rules.

Rank-Choice for Multi-Option Decisions When proposals present mutually exclusive paths—e.g., choose one of three asset-class priorities—the ballot transforms into a rank-choice vote. Voters order options by preference, and an instant-runoff algorithm redistributes lower-ranked selections until a majority emerges. This method reduces fork risk and encourages compromise without splitting the vote across similar options.

Conviction Voting for Treasury Streams Funding of large, ongoing grants uses a conviction model where votes accumulate over time while staked. As long as supporters keep their vote weight locked, conviction grows until it crosses a dynamic threshold relative to the grant size. This approach mitigates snap-decision funding sprees and incentivises deep commitment before treasury tokens are disbursed.

Anti-Sybil Measures Snapshot leverages a Proof-of-Uniqueness Attestation optionally linked to KYC credentials. Though not mandatory for all voting, large delegates exceeding a configurable weight must attach such attestations, increasing the cost of puppet wallets. Additionally, any delegate controlling more than 2 % of supply must publish weekly voting rationales, with failure to do so resulting in an auto-flag that signals holders to reconsider their delegation.

Economic Cost of Voting To discourage frivolous proposal spam, a proposal bond—refundable if quorum is reached—must be posted. The bond amount scales with potential protocol impact: higher for treasury spends, lower for documentation edits. This bond is slashed partially if proposals fail to meet quorum, compensating the network for review effort.

These layered mechanisms allow governance to tailor decision-making styles to the nature of each change—balancing efficiency, inclusivity, and resistance to undue concentration of power.