I wrote previously about how SmartCash can become the system that replaces the oligarchy that currently governs all people in the world. SmartCash can turn this all upside down because of its community governance system. 70% of all block rewards get put into a community fund. Members of the community can propose uses for these funds and can vote these proposals up or down. And we're not talking small potatoes here.
But in order for SMART to topple rather than simply replace the oligarchy with a new one, the 1-to-1 relationship between money and political power must be altered. The current SMART voting system uses the blockchain to grant one vote to every unit of SMART in a wallet address. This essentially allows one person or a small group of people who hold very large amounts of the currency to govern the community fund more or less by themselves.
I have done some thinking and a little bit of math and have come up with an algorithm that is simple and easily fine-tuneable to implement the amount of equalization of voting power that is desirable by the community.
Instead of 1 SMART = 1 vote, consider this: SMART * (SMART/SMART^1.175). This algorithm gives us the following breakdown of number of coins held to number of votes that can be cast on proposals.
You can see that under this algorithm, more SMART equals more voting power. But the more you accumulate, the less political power each unit of the currency holds. This prevents the extreme concentration of wealth from leading to the extreme concentration of political power. In my view this is vitally important to address, as our currency society's failure to do so has lead to a world where money makes the rules, and capital replaces common sense.
As mentioned, he algorithm is easily tuneable by changing the value of the exponent. The lower the exponent, the lesser the equalizing effect.
SMART * (SMART/SMART^1.1)
SMART * (SMART/SMART^1.2)
There is a thread (started by someone other than me) on the SmartCash forums titled Is the Smartcash Voting System Right? where you can follow this discussion and see how the community feels about it.
