Mathematics of Voting Power: Part 1 - the value of votes - technical stuff by mathowl

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· @mathowl · (edited)
$4.54
Mathematics of Voting Power: Part 1 - the value of votes - technical stuff
*I will write a couple of mathematics posts about deriving an optimal strategy for maximising your voting value since I could not find a solid post with proofs. This post was sparked by a question of @iamstan.* 

<center>
![businessmen-1050341_640.jpg](https://cdn.steemitimages.com/DQmSRwfi9hzkfjNX9ptcspcXx2mex4rX6GaZPRQf3KsKKid/businessmen-1050341_640.jpg)
</center>

On steemit you use voting power (VP) to vote. Luckily it is an infinte resource since it regenerates over time.  The amount you can reward and the speed at which VP is replenished follows specific formulas. You can find an overview of them over [here](https://www.steem.center/index.php?title=Rewards:Formulas). In this post I will derive a formula for the VP you have  left after a single vote. From this we will then derive an easy formula for the amount of VP left after n-votes at equally spaced times.  Your vote value is equal to VP x Constant where the constant depends on a number of account specific properties.  So using these formulas we can derive the value of casting n-votes. In a later post we can then optimise the total value of the votes cast in relation to voting value. 

The intermediate calculations require some basic calculus, but you can also skip these if you are yet uninitiated to the calculus cult.


## Assumptions and notations

I will just be looking at votes cast at 100% weight. Also I will be assuming that all votes are cast at equally spaced times.  

<center>
v<sub>n </sub>  is  VP rate at the n-th vote and &Delta;t  is the time interval in minutes between two votes
</center>

VP is generated at fixed amount per time interval. I will just be working with minutes. So denote by

<center>
R  the VP generated per minute
</center>

## v<sub>1 </sub> and  v<sub>2 </sub> : VP at the first two votes

So the first vote you cast is equal to your starting VP so v<sub>1 </sub> . So that's easy. After you voted   your VP will be reduced by a value determined by your previous vote which is  c<sub> 1</sub>(v<sub>1 </sub> + c<sub> 0</sub>) where  c<sub>0 </sub>,  c<sub>1 </sub> are two positive constants.  In the time between your first vote and your second vote you regenerate  VP equal to   R  &Delta;t  . Observe that the time between votes could be so big that our VP has already been fully replenished. So the VP directly after you cast your second vote is equal to

<center>
![wwwwww.png](https://cdn.steemitimages.com/DQmQ9tMtVnGiMaMbxPhNthgrxs7bFiwvmbp63fE3o9epnEh/wwwwww.png)
</center>

## v<sub>n +1</sub> : VP at the n+1-th vote

The cost of a vote on your VP is determined by your previous VP. Making it a recursive relation. After you cast your  n+1-th vote  your VP will be reduced by a value determined by your previous vote which is  c<sub> 1</sub>(v<sub>n </sub> + c<sub> 0</sub>) where  c<sub>0 </sub>,  c<sub>1 </sub> are the two same positive constants as mentioned earlier.  In the time between your n-th vote and your (n+1)-th vote you regenerate  VP equal to   R  &Delta;t  . Then the equation we end up with is

<center>
![wwwwwwwwwwwwwwwwwwwwwwwww.png](https://cdn.steemitimages.com/DQmU6geuFeLE6YPATtaZmumAcrDHfRKnmPaj8vXbEae1amC/wwwwwwwwwwwwwwwwwwwwwwwww.png)
</center>


Now assume that f<sub>k </sub>   ≤ 1 for all  k ≤ n+1. This means that there is no time interval where our VP is 1. Note that under this assumption the VP rate can equal 1 at the exact time we vote. Then, with some calculus, we obtain this cool formula for the VP after n+1-votes:
<center>
![simplevn.png](https://cdn.steemitimages.com/DQmZN91gNssvTzVVvdQxvkHrQaaxwwLH2fE5BBaiMcjfNk3/simplevn.png)
</center>


## v<sub>tot </sub> : the sum of VP
Recall that the value of a vote is equal to VP x constant. So the total value of  N-votes is determined by 

<center>
![vtot.png](https://cdn.steemitimages.com/DQmb8yqJzFiY8VnKT79ZrFNeLnYfrAHgdrdVXHfDciN8wgz/vtot.png)
</center>

times a constant. Let us assume that  f<sub>k </sub>   ≤ 1 for all  k ≤ N  .  Then, yet again with the magic of  calculus we can show that
<center>
![wwww.png](https://cdn.steemitimages.com/DQmVLWG3i1mR8Ug4obwzgxJSgzsPp8n3EqkbGxcFbNCmDPi/wwww.png) 
</center>

That is all for now, all the opimisation stuff postponed to the next post.

<hr>

**Sources:** [Rewards: formulas from steemit](https://www.steem.center/index.php?title=Rewards:Formulas) . Top image from [Pixabay - Geralt - CC0 creative commons](https://pixabay.com/en/businessmen-silhouettes-man-economy-1050341/).  All equations made using [quicklatex](http://quicklatex.com/) it is free.  :D

<hr />
<center>
<h2> Merchandise :D </h2><br />
</center>
<p><img src="https://steemitimages.com/0x0/https://cdn.steemitimages.com/DQmdwbunfcePxAncstQN21fDefS97B3ofRrAABmi29zD26B/g7592-1-9.png" alt="2018-06-07 (2).png" /><br />
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<hr /> 
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<hr>
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vote details (62)
@eonwarped ·
$0.03
Just to sanity check here, the value of the vote should be proportional to the power used, not the power at the time of vote right? Finding the formulas here to be rather unfamiliar hmmm.
👍  ,
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vote details (2)
@mathowl · (edited)
$0.04
Maybe I am using wrong terminology. 

So I am only considering votes at max weight.  So in terms of the formulas from here -> https://www.steem.center/index.php?title=Rewards:Formulas we have that

https://www.steem.center/images/c/c3/Weight_from_voting_power.png 


so the  w the weight is  100 % and V_p is the voting power
 
https://www.steem.center/images/2/24/Voting_power_used.png

p_u is the power used. So there is a linear relation between V_p (voting power)  and the power used.

The vote value is then given by 

https://www.steem.center/images/7/70/Worth_of_vote.png

(I am assuming that Sp x g= constant)

So since I am considering max weight the vote is proportional to the V_p at the time of the vote

btw thanks for the dustvotes gift :)
👍  ,
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vote details (2)
@eonwarped ·
$0.04
Ah yes okay I thought that the voting power used formula was more complicated but I'm on board now. 

One other thing I'm noticing now is that the time deltas have dependence on n. I suppose you make the assumption that they are constant for now and tweak it later?
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vote details (1)
@steemitboard ·
Congratulations @mathowl! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :

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<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>


To support your work, I also upvoted your post!


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@iamstan ·
$0.05
Thanks @mathowl for taking the time to do the real math behind knowing the facts behind voting properly.
Now if we can just get everyone to understand this math and why it is important to vote properly to gain your share of the reward pool. Its another example of delayed gratification that I think needs to be considered to be a POB person.

You know that is another factor in this equation that has to be considered is the size or the reward pool and if that is a constant number or if it is growing or getting smaller every day?
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vote details (3)
@mathowl · (edited)
$0.03
According to this https://www.steem.center/index.php?title=Rewards:Formulas If you vote 30 min after a blog-entry gets posted then the  curation reward (25 % of the total reward) will  purely depend on the rshare value before and the rshare value after you vote. If you vote before 30 min then part of the curation reward will be received by the author. This follows some linear relation such that if you vote at the exact time that something gets posted then the curation reward will be entirely received by the author.
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vote details (1)
@iamstan ·
$0.06
Now with HF20 coming that will be changing. it will be interesting to see how it all plays out after the fork is done. 
Sometimes I vote right at 29 minutes to get in  before the big votes come but on some post they come quickly. On most of my friends post I just vote when I know they have a post. Not really about the rewards but letting them know I read it. Thanks again I will be happy to read the next installment on this subject.
👍  ,
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vote details (2)
@followforupvotes ·
$0.07
Congratulations
As a follower of @followforupvotes this post has been randomly selected and upvoted! Enjoy your upvote and have a great day!
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vote details (1)
@cuddlekitten ·
I like you
![cuddle_teddy1.png](https://steemitimages.com/DQmbkoTPspoJLwd21U9awA2rX2bBNpgFr2Tbm6GDsUAWkg3/cuddle_teddy1.png)
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@minnowsupport ·
<p>Congratulations!  This post has been upvoted from the communal account, @minnowsupport, by mathowl from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows.  Please find us at the <a href="https://discord.gg/HYj4yvw"> Peace, Abundance, and Liberty Network (PALnet) Discord Channel</a>.  It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.</p> <p>If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: <a href="https://v2.steemconnect.com/sign/delegateVestingShares?delegator=&amp;delegatee=minnowsupport&amp;vesting_shares=102530.639667%20VESTS">50SP</a>, <a href="https://v2.steemconnect.com/sign/delegateVestingShares?delegator=&amp;delegatee=minnowsupport&amp;vesting_shares=205303.639667%20VESTS">100SP</a>, <a href="https://v2.steemconnect.com/sign/delegateVestingShares?delegator=&amp;delegatee=minnowsupport&amp;vesting_shares=514303.639667%20VESTS">250SP</a>, <a href="https://v2.steemconnect.com/sign/delegateVestingShares?delegator=&amp;delegatee=minnowsupport&amp;vesting_shares=1025303.639667%20VESTS">500SP</a>, <a href="https://v2.steemconnect.com/sign/delegateVestingShares?delegator=&amp;delegatee=minnowsupport&amp;vesting_shares=2053030.639667%20VESTS">1000SP</a>, <a href="https://v2.steemconnect.com/sign/delegateVestingShares?delegator=&amp;delegatee=minnowsupport&amp;vesting_shares=10253030.639667%20VESTS">5000SP</a>. <br><strong>Be sure to leave at least 50SP undelegated on your account.</strong></p>
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