Governance

Make Your Voice Heard.

The Graph’s decentralized governance puts power into the hands of community members to ensure stability and progress in the ecosystem. A quick guide on how you can vote via Snapshot can be found here: Voting on a Proposal.

Let’s have a look at how your voting power is calculated.

Voting-Snapshot

Calculating Your Voting Power in 3 Steps.

The score of a wallet (i.e. voting power) is calculated by using strategies. A strategy is a function that returns a score for your address. By default, Snapshot calculates the balance of a specified ERC20 token in your wallet and returns a score based on it. However, Edge & Node has created three strategies for counting a vote. Let’s have a quick look at the process for calculating your vote:

1

Taking a snapshot

For each proposal, there is a specified Snapshot block number. If you were not holding GRT tokens during that block number, you cannot vote

2

Counting your GRT holdings

Snapshot counts the GRT in your wallet during the specified block number. Holdings are broken down into delegated GRT, Indexer staked GRT and wallet GRT

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3

Calculating your vote

Based on the defined calculation strategy by Edge & Node, the score of your wallet is calculated. Your voting power could be higher than your GRT holdings

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The Three Strategies for Calculating Your Vote

While taking a snapshot of your wallet during the time of the specified block number, Snapshot will categorize your GRT holdings into three groups:

Wallet GRT

The amount of GRT sitting unused in your wallet

Delegated GRT

The amount of GRT you have delegated to an Indexer

Indexer staked GRT

The amount of GRT you have staked (if you are an Indexer)

Your score is calculated based on your holdings of GRT. Depending on how your GRT are used (delegated, Indexer staked and unused in wallet), a different set of votes will be attributed to 1 GRT.

Voting power – Attributing Votes for each GRT

The baseline for calculating votes is the total amount of GRT in wallets. Each of the three groups (wallet GRT, delegated GRT and Indexer staked GRT) are worth exactly 33.33% of the scoring.

Total GRT in wallets

Baseline of 1 vote per GRT

Total GRT in wallets

Total Indexer staked GRT

Indexer Multiplier

Total GRT in wallets

Total delegated GRT

Delegator Multiplier

Calculating Multipliers

Let’s calculate the voting multipliers based on the assumption that there are 7.8B GRT in wallets, 550M GRT staked by Indexers and 1.65B GRT delegated.

7.8B GRT in wallets

550M GRT Indexer staked

14.18 Indexer Multipl.

7.8B GRT in wallets

1.65B GRT delegated

4.73 Deleg. Multipl.

Attributing Votes

Based on the three calculating strategies, a different set of votes is attributed to each GRT token you are holding in your wallet, delegating to an Indexer or staking as an Indexer. 

Wallet GRT

1 GRT = 1 vote

Delegated GRT

1 GRT = ~4.73 votes

Indexer staked GRT

1 GRT = ~14.18 votes

For each proposal, the multipliers will be recalculated based on the amount of GRT in the network during the time of the specified block.

Calculating Votes – Based on Your Holdings

Let’s have a look at some practical examples to show how votes are calculated. (Note that the exact multipliers vary based on the number of GRT in the network during the snapshot of the specified block).

Scenario 1: The Hodler

Let’s assume you own 5000 GRT which are all stored unused in your ETH wallet.

Wallet holdings
5000 GRT

Wallet multiplier
1 Vote

Your voting power
5000 Votes

Scenario 2: The Delegator

Let’s assume you own 5000 GRT which are all delegated to one or several Indexers.

Delegated GRT
5000 GRT

Delegation multiplier
4.73 Votes

Your voting power
23.650 Votes

Scenario 3: The Indexer

Let’s assume you are an Indexer who has staked a total of 200,000 GRT.

Staked GRT
200,000 GRT

Indexer multiplier
14.18 Votes

Your voting power
2.836.000 Votes

Summary.

Awesome! You now perfectly understand the intricacies of how your voting power is calculated on Snapshot.