To decide how much of the total Weight Pool rewards are distributed to each rollup in a given stage, a gauge weight voting process is used. This is similar to the one pioneered by Curve Finance for use with their liquidity pools.

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Voting Cycles

Voting on VIP gauges occurs at regular intervals called cycles. Every VIP-whitelisted rollup has a “gauge” that determines the ratio of total Weight Pool rewards it can receive. INIT and Enshrined Liquidity stakers can then use their voting power to increase the weight of the gauges for their preferred rollups. They can allocate their entire voting power to a single rollup’s gauge or distribute it across multiple gauges. All gauge voting occurs on Initia L1.

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Gauge Voting Power

For VIP Gauge Votes, a user’s voting power depends on their staking position. For INIT staking, their VIP voting power matches their voting power in the Initia L1 governance. However, for Enshrined Liquidity staking positions, an adjustment factor is applied to their voting power. This adjustment factor varies for each staked LP token pair.

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Example Scenario

Consider a case with 3 users and 3 rollups:
UserTotal Voting Power
User 130%
User 250%
User 320%
Each user decides to vote on the gauges as follows:
UserRollup 1 GaugeRollup 2 GaugeRollup 3 Gauge
User 110%15%5%
User 225%25%0%
User 320%0%0%
*Percentages represent the portion of each user’s total voting power allocated to each rollup. After the voting period ends, the final Weight Pool reward distribution is calculated as follows:
RollupPercentage of Total Rewards
Rollup 155%
Rollup 240%
Rollup 35%
In this case, the Weight Pool rewards for the cycle will then be split 55:40:5. VIP Gauge Voting