These Are The Algorand Governance Period 6 Draft Measures - Significantly Lowered Rewards in G7?

algorand governance measures

These Are The Algorand Governance Period 6 Draft Measures

The Algorand governance program manager, Adriana Belotti, announced the draft measures for the G6 period in a forum post on the Algorand website. 

Belotti asked the Algorand community for feedback on the measures ahead them being finalized and published publicly on the governance portal

Prioritizing Growth of The Ecosystem

The community has expressed concerns about high rewards for quarterly votes with no ecosystem participation. The foundation members are actively discussing the best moderation gradient, with the help of the governance advisory council, and will announce rewards each quarter while remaining flexible to market needs.

In the post, she stresses that the Algorand Foundation is changing its governance rewards to prioritize activities that contribute to the growth and health of the Algorand network, such as DeFi rewards and the xGov program. 

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Lowered Rewards From Governance 

She announced that their considering a total rewards pool of either 60MM Algos or 50MM Algos for the next (G7) period of governance, including a minimum of 15MM Algos in DeFi rewards, as well as the two measures below.

The Two Proposed Governance Measures

Below follows the two measurements as described in the forum post linked previously. Measures will be live on the governance portal from February 24th and the voting session will be open from March 3rd-17th (Singapore time). Those wanting to submit feedback can do so until then. 

Measure 1 - DeFi Rewards 

DeFi rewards have led to a significant boost in Algorand's TVL. Yes, TVL is not the be-all measure of an ecosystem, but it is important for our ecosystem in this early stage, as we fight to gain mind and market share amongst other L1s. 

To further boost participation in the DeFi protocols, rather than passive holding, we are considering increasing the current level of DeFi rewards from 15MM to 20MM Algos. 

This would be a yes/no vote.

Measure 2 - Project Relief Pool

We are also proposing establishing a pilot program to support projects that are struggling to find their audiences amidst bear market challenges. This program would have an initial allocation of 2.5MM Algos.

This would be a yes/no vote.

Fund allocation criteria:

• Proposals are to be submitted to vertical heads for evaluation and approvals may be processed by the vertical committees - if they are formed - or by (a) the vertical head and/or (b) GAC*.

• Proposal criteria, management, and approval process.

• project must be on mainnet; or

• project must have users, including beta users; or

• project must meet minimum development criteria if it doesn’t fall under the two criteria above.

• Maximum allocation based on the number of required FTE or operational costs;

• Support fund to be paid out in Algos in monthly installments for X months;

• Other … (from community feedback)

If this pilot program is successful and the market conditions remain unchanged, we may repeat this measure to allocate further funding.

Note: That the Relief Pool is approved 2.5MM will be deducted from the both general governance and DeFi rewards pool prorated. For example, if measure one pass and we will have pools of 40MM Algos for general rewards and 20MM Algos DeFi rewards in Q2, then ⅔ and ⅓ of 2.5MM Algos would be deducted from each pool respectively.

Article Author: Martin
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