Voting Power

The size of each validator’s delegation pool (i.e., the amount of dPEN of that validator’s flavor) is public information, and determines the validator’s voting power. However, these sizes cannot be used directly, because they are based on validator-specific conversion rates ${\psi }_v$ and are therefore incommensurate.

Voting power is calculated using the adjustment function ${\theta }_v(e)={\psi }_v(e)/\psi (e)$, so that a validator $v$ whose delegation pool has $y_v$ dPEN in epoch $e$ has voting power $y_v{\theta }_v(e)$.

The validator-specific reward rate $$r_{v,e}=r_e-c_{v,i}{r}_e$$ adjusts the base reward rate to account for the validator’s commission. Since $${\psi }_v(e)=\prod _{0\le i<e}(1+r_{v,i}),$$ and $$\psi (e)=\prod _{0\le i<e}(1+r_i),$$ the adjustment function $${\theta }_v(e)=\frac{{\psi }_v(e)}{\psi (e)}=\prod _{0\le i<e}\frac{1+r_{v,i}}{1+r_i}$$ accounts for the compounded effect of the validator’s commission on the size of the delegation pool.