Analysis of “Hot” and “Cold” Trends in Badgeholders’ Voting Behavior

Created 2024-05-22By BeaconLabsVersion 1.0.0

Key Points

A simulation analysis of how voting behavior trends (hot/cold) influence funding allocation. “Hot” voters are defined as those who concentrate votes on a small number of projects, while “cold” voters are those who spread votes across many projects. The analysis simulates funding allocation excluding these types of voters and evaluates the impact by comparing it to the original allocation.

Background

In FIL-RetroPGF-1, each badgeholder (voter) had 100 votes and cast them across multiple projects. This analysis classifies badgeholders’ voting behavior based on the concept of “temperature” and examines how such tendencies affected overall funding allocation. Specifically, it identifies “hot” voters who concentrate votes on a small number of projects and “cold” voters who spread votes across many projects, then simulates scenarios excluding these groups.

Analysis Method

Dataset

An anonymized dataset of all votes cast by badgeholders in the FIL-RetroPGF-1 round.

Intervation / Explanatory Variable

Excluding the top 10% of “hot” badgeholders (those who concentrated votes on fewer projects) and the top 10% of “cold” badgeholders (those who spread votes across many projects) from the dataset.

Dependent Variable

Funding allocation to projects

Identification Strategy

A counterfactual analysis comparing three scenarios: the original funding allocation, allocation excluding “hot” badgeholders, and allocation excluding “cold” badgeholders.

Results

  • Excluding the top 10% of “hot” badgeholders had a very small impact on funding allocation.
  • In contrast, excluding the top 10% of “cold” badgeholders led to a disproportionately large reduction in the number of projects receiving funding.
  • This is likely because “cold” badgeholders helped more projects reach the quorum requirement, enabling funding to be distributed more widely. In addition, their low votes (e.g., 0, 1, 2) lowered the average scores of projects, further contributing to broader distribution of funds.

Results

  • Mixed
    Classification of badgeholders’ voting behavior based on the concept of “temperature”
    Funding allocation to projects.

Methodologies

  • Counterfactual analysis