Voting Mechanisms and Weighted Analysis Dilemmas, for Portfolio, Crowdfundig, Majority overshadowing Problem and more.

Voting for portfolio distribution problem.md

Voting Mechanisms and Weighted Analysis Dilemmas, for Portfolio, Crowdfundig, Majority overshadowing Problem and more.

Tweet: https://twitter.com/GWierzowiecki/status/1701162675084947892

Introduction:

A decentralized system is envisioned wherein fractional owners of a portfolio contribute to decision-making regarding the distribution of funds among tokens. As a simple example, consider tokens named A, B, C, D...

Problem Statement:

When taking a straightforward approach of collecting proposals and performing a weighted analysis based on the fraction of the portfolio they own, it can lead to discrepancies in the desired distribution.

Example:

Consider two fractional owners:

1. Person 1 owns 25% of the shares and desires 75% in token A and 25% in token B.
2. Person 2 owns 75% of the shares and desires 100% in token A.

With a direct weighted analysis:

• From Person 1's perspective, the distribution results in 18.75% in token A and 6.25% in token B (25% of 75% and 25% respectively).
• Person 2 contributes 75% to token A.

Cumulatively, this would yield 93.75% in token A and 6.25% in token B.

However, if Person 1 voted 100% for token B (to counteract Person 2's dominant weight), the resulting distribution would then be 75% token A and 25% token B, as they actually wanted!

This reveals a misalignment where Person 1, to achieve their actual desired distribution, needs to vote differently.

Thought-Provoking Questions:

1. How can we devise a voting mechanism that ensures accurate representation of fractional owners' desires?
2. Is it fair to allow fractional owners to potentially 'game' the system to achieve their desired distribution?
3. How do we strike a balance ensuring that the majority doesn't always overshadow the minority's desired distribution?
4. Is "quadratic voting" scheme in anyway helpful for described dillemas?
5. What are the implications, pros, and cons of potential counting schemes?
6. How can fairness be defined and measured in such systems?

Call for Proposals:

The community is invited to propose potential solutions, weighing the pros and cons, and exploring innovative ways to measure fairness in this context.

Understanding and addressing this challenge can help decentralized portfolio management, crowdfunding platforms, and general community activities, giving voiting different outcome.

We eagerly await your insights and recommendations.