The algorithm take takes into account the strength of preferences
Quadratic voting allows people to express how strongly they feel about an issue. Quadratic voting implements a curved voting weight system, where every additional vote for a proposal becomes exponentially more expensive to cast.
For example, Voting "Yes" for a proposal follows the following rules:
1 vote for "Yes" requires 1 token.
2 votes for "Yes" requires 4 tokens.
3 votes for 'Yes" requires 9 tokens.
Quadratic voting rewards smaller users who are very passionate and adamant about the proposals being voted on. Additionally, whales don't have as much voting power due to the quadratic curve.
The price paid to increase voting power in the Votility context is the opportunity cost of the staked tokens that are voluntarily locked during the desired period. The term quadratic comes from the discount in the linear increment of voting power compared to the quadratic increment of required lock time in weeks.
Voting Power = Tokens staked * Blocks passed * Voting Power Multiplier
Alice and Bob are voting on whether or not to increase the marketing budget.
Alice has 40,000 VOTY tokens and chooses "Yes" at a block height of 1000.
Bob has 120,000 VOTY tokens and chooses "No" at block height 2000.
Alice cares deeply about this decision and is willing to stake her own tokens for 16 weeks to increase her voting power.
Bob is fairly indifferent about the decision and only decides to stake his tokens for 1 week.
If the election ends at a block height of 2100, what would be the net result of Alice and Bob?
In this case, "Yes" would win even with fewer tokens allocated because of the staked time that increased the voting power.