Quadratic Voting: A System for Expressing Preference Intensity

Quadratic Voting (QV) is a voting mechanism designed to capture not just the direction but also the intensity of voters' preferences. Unlike traditional voting systems that allow a single vote per person, QV enables participants to allocate multiple votes toward issues they care about more deeply, with the cost of additional votes increasing quadratically.

How Quadratic Voting Works

1. Token Allocation
   Participants are given a fixed number of tokens. These tokens can be spent to vote on one or more options in a decision-making process.

2. Quadratic Cost Structure
   The cost of votes follows a quadratic rule:

   • Casting 1 vote costs 1 token.

   • Casting 2 votes costs 4 tokens (2²).

   • Casting 3 votes costs 9 tokens (3²), and so on.

   As the number of votes increases, the cost rises exponentially, making it progressively more expensive to express stronger preferences.

3. Vote Distribution
   Participants allocate their tokens based on their priorities. This system allows individuals to signal which issues matter most to them by investing more heavily in those areas.

Key Features of Quadratic Voting

1. Preference Intensity
   QV enables voters to indicate not only their choice but also how strongly they feel about it. For instance, someone with a strong preference for a specific policy can allocate more tokens to that option.

2. Fairness and Balance
   The quadratic cost function ensures diminishing returns for additional votes, preventing a single voter or group from dominating the process with an overwhelming number of votes.

3. Strategic Decision-Making
   Voters must consider both the importance of the issue and the cost of expressing their preference, promoting thoughtful token allocation.

Benefits of Quadratic Voting

1. More Representative Outcomes
   Traditional voting systems often fail to reflect the intensity of preferences. QV addresses this by allowing stronger preferences to have a greater, though not unlimited, impact.

2. Protects Minority Interests
   By capping the cost-efficiency of multiple votes, QV reduces the risk of majority groups overpowering minority voices with strong preferences.

3. Customizable for Various Contexts
   QV can be adapted for use in governance, resource allocation, and public decision-making, offering flexibility across different scenarios.

Challenges of Quadratic Voting

1. Complexity
   The quadratic cost model can be challenging to understand for participants unfamiliar with the concept, necessitating clear explanations or tools to calculate costs.

2. Token Distribution Fairness
   Equitably distributing tokens is critical to ensuring that no group or individual has disproportionate influence.

3. Potential for Collusion
   Coordinated efforts by groups to pool tokens may undermine the system’s fairness, especially in competitive decision-making contexts.

Applications of Quadratic Voting

1. Governance and Decision-Making
   Organizations and decentralized networks can use QV for governance to account for varying levels of stakeholder interest in specific proposals.

2. Public Policy and Resource Allocation
   Communities and governments can implement QV for decisions like budgeting or public project prioritization, ensuring resources align with collective preferences.

3. Market Design and Collective Choices
   QV can be used in market settings where participants vote on issues like pricing or product features, balancing consumer preferences effectively.

Quadratic Voting offers a nuanced approach to decision-making, allowing voters to express both their choices and the intensity of their preferences. While it introduces some complexity, its ability to produce more balanced and representative outcomes makes it a valuable tool for governance, policy-making, and resource allocation. With careful implementation, QV can enhance fairness and inclusivity in a wide range of contexts.