The Supply Mechanism of Voting Power

In the process of issuing voting power (VP), DigiFunDAO aims to encourage more people to participate at the early stage, but at the same time, VP needs to be released in a relatively stable way, so that the project will not result in the loss of users in the later stage.

And, unlike the PoW mining process, our VP is obtained by holding our products, that is, the unit cost of VP is stable at the same time, without additional fixed cost. In this case, we choose a simple exponential decay model to fix the monetary tightening rate each month for 85% VP that is distributed to products.15% of VP granted to experts will be distributed in the form of soulbound NFT to prevent adverse effects on the release of VP.

Specifically, we will have a total of 100 million VPs, of which 15 million will be given to experts in the form of soulbound NFT and 85 million will be allocated to products.

The soulbound NFTs corresponding to the 15 million VP will be issued to experts accredited by the DAO organization. The DAO organization can propose and initiate a vote to appoint a DigiFunDAO expert, and all DAO organization members can vote on the proposal.

The rules for assigning VP to products are as follows. As discussed above, since there is no fixed cost, this model is stable. It is found that the half-life of the exponential decay according to the relation between Fibonacci series and the total release time is the best result to be expected. That is, the half-life is $0.382 * 18 = 6.876$. Therefore, our formula for new VPs yield each month is as follows:

$9,737,185 e^{[ln(2)/6.876] (t-1)}, t=\text{months after start}$

To facilitate allocation, we set the accuracy of vp for each month to 10,000. The total VP distribution can be expressed by the following graph: