What is the voting algorithm, and how does it work?


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What is the voting algorithm, and how does it work?

The voting algorithm is the easiest way to participate in the Dynamic Peg’s voting/consensus. It will vote for a healthy price based on current market conditions, without the user having to vote manually.

Note: This algorithm is one of several voting options. It will ONLY have an effect on the supply/price if the majority of users choose to select it as a voting option. The algorithm’s initial target price ($0.20) solely exists to activate its functions, and is not a fixed price target.

  • The algorithm’s voting power depends upon the number of stakers using it.

  • Switching back to manual voting is as simple as the click of a mouse. Without an algorithmic oracle, manipulators will incur extreme risk trying to manipulate price in their favor for any significant length of time.

  • With this unique voting system, BitBay can change algorithms to test new ideas without requiring a hard fork. Hypothetically, once enough data has been collected and a series of reputable algorithms are found, the human element could be removed entirely. Users can also design their own custom voting algorithms for personal use.

For the Markets Client:

  • Also as a hard-coded rule, voters must remain active with their Markets Client wallets in order to participate in Dynamic Peg voting. One cannot simply unlock their wallet, set a vote preference, and let it run passively forever. Every voter must manually refresh their vote decision after a designated number of votes.

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These rules are as follows:

  • Manual votes (deflate, inflate, no change) = 10 votes / 4,000 blocks before reset needed
  • Algorithmic votes = 20 votes / 4,000 blocks before reset needed

Below is a visual example of how the Dynamic Peg algorithm option works:

*** COMING SOON: BitBay’s custom algorithm option! Users will soon be able to cast votes based on their favorite TA indicator.

Questions, comments, concerns? Please post them in the comments below!