You rank the candidates by preference. They rally all the votes up based on everyone’s top selection and then they drop the last-place candidate. If your candidate was dropped, your vote transfers to your second-place option and they recount. Once a candidate has enough votes, they are elected.
Alternatively, this system can be set up to allow you to move your vote to less popular candidates if the first option had way more votes than necessary for the win. This is useful when electing groups of people, such as a proportional parliament
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