Voting Pool Formation

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In the case of a new voting pool forming from a group of businesses which were previously operating as independent entities, they will have existing customer deposits they must move into the pool.

To do this, first they must agree on an initial cold storage percentage (default: 95%)

After this decision, they reserve enough series numbers to create one hot series and the rest of their existing holdings as inactive series, then increment this number by one to form the active series.

Example using the default 90% cold storage percentage

The pool starts out operation with series 11 as the active series.

Each member divides their existing holdings into 10 equal batches.

They move each batch into series 1-10 without combining outputs. For example, if there are 100 unspent outputs in batch 1, then the server uses 100 transactions to send each UTXO to the first 100 addresses in series 1.

Repeat this process until each batch has been migrated to the appropriate series.

If the pool instead desired a 95% cold storage percentage, then they would reserve 20 series numbers and set series 21 as the active series.