Notes

Voting Power

The voting power of each validator is calculated using the following formula:

$$\text{Voting Power of Validator } i = \frac{\text{Staked Tokens of Validator } i}{\sum_{j=1}^{N} \text{Staked Tokens of All Validators}}$$

Where:

• (i) represents a specific validator.

• (N) is the total number of validators.

• The sum in the denominator ensures that the voting power is normalized across all validators, and the sum of all voting power equals 1 (or 100%).

Transaction Validation Threshold

Blocking Malicious Transactions:

For a transaction to be flagged and blocked, at least 66% of the voting power must agree that it is malicious.

• Block Transaction 𝑇𝑥 if:

$$\sum_{i=1}^{K} Voting Power of Validators Flagging T x ​  as Malicious ≥ 66$$

Where:

• i represents a specific validator.

• K is the set of validators that flagged the transaction as malicious.

• The summation represents the voting power of validators who believe the transaction is malicious.

Approving Transactions

If the consensus to flag a transaction as malicious does not reach 66%, the transaction will be approved by default.

Approve Transaction 𝑇𝑥 if:

$$\sum_{i=1}^{K} Voting Power of Validators Flagging T x ​  as Malicious < 66$$

In this case, if the voting power flagging the transaction as malicious is below 66%, the transaction is approved by default.

Summary

• Weighted Influence: Validators’ voting power is proportional to their stake, meaning those more at risk significantly influence the decision-making process. This creates a strong incentive for validators to act in the network’s best interest.

• Broad-based agreement: The 66% threshold ensures that decisions on transaction validity reflect broad-based agreement among validators. This collective judgment makes it difficult for any single validator or small group to exert undue influence over the consensus, reinforcing the network's decentralized nature.

• Penalization of Malicious Actors: Validators who attempt to approve or push through malicious transactions risk losing their staked assets through slashing mechanisms.