I will try to further lay out the math and logic to make things more apparent and understandable.
Let’s continue using KuCoin as an example with their large weight and show where the numbers go:
The above will equate to the shown ‘VDAOG’ (far right column)
Effectively, there is a natural log calculation nested within the formula above, being ‘lnVDAOG’.
Now the interesting part of this math is the logic of how it operates to prevent a single node in taking over an immense amount of voting power and to prevent many small nodes ran by a nefarious actor aiming to amass voting tokens to sway public voting. We will have to define some limits here:
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Upper Cap = Max Keys * (1.35 * Effective Median Stake)
- Current Max Keys set by protocol is 52
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Lower Cap = 0.65 * Effective Median Stake
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Effective Median Stake = 5,238,400 ONE (epoch 984 data)
When the equation is calculated, a node’s stake is checked via this logic:
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If Validator Stake is GREATER than Upper Cap THEN the node’s VDAOG = Upper Cap
- Look at Binance Staking as an example with their VDAOG allotted
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If Validator Stake is LESS than Upper Cap AND GREATER than Lower Cap THEN the node’s VDAOG = the above equation
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If a Validator Stake is LESS than Lower Cap THEN a node’s VDAOG = (Validator Stake / 2)
- This aims to prevent a user in spinning up nodes to amassing voting tokens as a stake above the defined Lower Cap will likely require an operational and signing validator node to keep that stake. The Lower Cap is in line with the network’s lower bound.
Please post your questions!