Voting System/ VoteCoin Valuation

[Modernschool]

Dear All,

I would like to learn more about the Voting System and specifically I'm looking for an answer to the following 2 questions:

a) How the Votecoins are distributed?
b) How Votecoins' value could be measured?

Thank you,
Mordernschool

[koeppelmann]

Welcome to the truthcoin forum!

b) How Votecoins' value could be measured?

The initial distribution of votecoins is not set yet. However, one it is done further distribution is done a) by normal trades/ transactions of them. And b) by RBCD (reputation based coin distribution). A process after every voting period that rewards all that votes close to the consensus and that gives the strong incentive not to cheat on your vote.

b) How Votecoins' value could be measured?

First of all they can be traded like ever crypto coin - and the price will set the value. However, since voters (votecoin owners) get part of all the fees that needs to be paid for trading and creating a market, the value is connected to the value of this fees or the future expectation of this fees.

[psztorc]

a) Initially, my current plan is to auction them off, so as to create a stable genesis-allocation. Unlike Ethereum/Bitshares, this auction would only take place after the software had been fully developed and tested. See this presentation mentioned in this thread. Over time, I expect all owners of VoteCoins to unanimously Vote on Outcomes...but if these Votes are not unanimous the VoteCoins are redistributed according to my SVD-based algorithm. See this demo for an idea of how this works.

b) I would expect the market price of a VoteCoin to be a function of anticipated future Trading Fees.  See this presentation mentioned in this thread.

[Modernschool]

@psztorc

a) Why you need to redistributed them?

b) Maybe this is the one part of the value. The other one may is the value they obtaining as the trades are happening.

[zack]

My plan deviates from Paul's a little.
I was inspired by this guy: https://news.ycombinator.com/item?id=7693891

If you pay a large fee in cashcoins, then you produce a new type of votecoins which have a unique name.
When you ask a decision, you choose which pool of votecoins to ask.

It is possible to create prediction markets using multiple decisions such that each decision is controlled by a different pool of votecoins.

[Modernschool]

@ zack, psztorc

I do believe that the votecoins are useful for multiple reasons but I can barely see why that should be such a complicated issue.

Let's come back to the real world: If you have the right to buy vote rights for an election in an association that gives you just a small compensantion and nothing more how much you would pay for each vote right?

The example is not really similar but hope that you will get what I'm trying to say.


@ zack
You can't put large trading fee. Actually, you can't let the author set large trading fee! Will cause critical difficulties to the trading activity. Little fee many transactions

[psztorc]

a) Why you need to redistributed them?

To ensure honest voting. If everyone Votes honestly, there is no redistribution at all.

b) Maybe this is the one part of the value. The other one may is the value they obtaining as the trades are happening.

You say that one part of the VoteCoin's value is the value they obtain? That doesn't make sense to me.

[Modernschool]

@pstzorc

a) but If you redistributed then how you will know who owns what?

b) Yes. Everytime that a trade is placed they obtain 50% of the trading fee. That's along with the anticipated trading activity equals to the VoteCoin value each moment.

[psztorc]

I don't need to know who owns what. The VTC are redistributed deterministically.

[Modernschool]

@psztorc

But according to the white paper the owners of VoteCoins are taking 50% of the trading fee therefore if you change the VoteCoins redistribution who is gonna take what and why?

[psztorc]

VTC owners use those coins to claim the Trading Fees (which are in CashCoin).

[Modernschool]

@psztorc

But that's the problem.
VTC have the initial distribution and then if someone votes unrealistically you redistributed VTC. In the end of that process who will have what so it could claim with his VTC his revenues which are in CashCoins. Doesn't matter the form of the revenue what it matters is if he could use his VTC.
And that's my question. How he could claim him money when you do VTC redistributions?

[Modernschool]

@psztorc

One more concern: If you do VTC redistributions how you can ensure that voting participation will remain high round by round?

[psztorc]

See for yourself: http://forum.truthcoin.info/index.php/topic,134.0.html

After you calculate, observe 'Net Change'.

[Modernschool]

The sum net change equals to zero. Okay. I see that. I wonder the correct interpretation of that zero: the number of VTC remains constant; that make sense. If each of us has $10 and then I give you $5 of mine the total value of our cash remains $20. But now we cannot claim the same amount.

One more question: if I understand well the whole process of redistribution doesn't require the voters to vote again. Is that right?