Blockchain governance is one of the most interesting aspects of cryptocurrencies. Maybe one of my backgrounds as a political scientist directs me, but I study and participate in those blockchains where governance is possible and where I can participate.
Thanks to Algorand wallet I didn’t miss this Governance period #1, which started on September 30, 2021, and the registration ends Oct 14, 2021. So — tomorrow, in a day and few hours after I publish this post. So if you hold some ALGO and you plan to hold them — that’s a good idea to register and that’s one more reason why I’m writing this post. The Governance period #1 ends on Dec 31, 2021.
The process to become a Governor is super easy. You can do it, just by visiting https://governance.algorand.foundation/governance-period-1 , connecting your wallet (top right corner of the page), and then you have to choose the amount of ALGO you want to commit, sign up the transaction with your wallet and that’s it.
As you can see from the image, I connected my wallet OZ4DEUKBEBSTGMVGXOYLLXDYP5COLFX7D3FBBRCYYDMNY6ANLEED6DCEE4
and now I’m eligible to vote.
As I’m writing this post — 58 788 governors (wallets) were registered with the total amount of 763 230 998,672 Algo committed stake so far. I think that’s good for the beginning.
And that’s what everybody will vote on.
Governance Period no. 1, Vote no. 1, Measure no. 1 (G1V1M1)
Option A: The Governance rewards amount for 2022 will be 282M Algos (70.5M per quarter) while maintaining the current simple locking mechanism: the rewards are distributed among the governors who vote and maintain the committed Algos in their wallet for the entire quarterly period. Governors failing to do so will lose their rewards, but will incur no further penalties.
Option B: The Governance rewards amount for 2022 will be 362M Algos (90.5M per quarter) with a slashing mechanism: the rewards are distributed among the governors who vote and maintain the committed Algos in their wallet for the entire quarterly period. In case of failing to do so, Governors will be subject to an 8% slashing of their committed amount, on top of losing their rewards.
I will vote for Option A for 2 reasons. Firstly is that it looks just an easier way and as I read, with this option there will be more rewards during the next years, so this option from the point of tokenomics looks better to me. Secondly, I think the big value of ALGO is that it’s very liquid and fast. Any time I need cash or fiat — I can send it to exchange, and get fiat money in less than 5–10 minutes. That’s actually what I’m doing from time to time. So I’m not sure I will keep the committed amount till the end of voting. I hope so. I hope to increase my numbers, but there might be a chance I will need to sell just to pay for my bills. In this case, I won’t have to worry about any penalties. By the way, The Algorand Foundation also supports Option A.
Before voting, I would suggest checking this page
And the governance FAQ is you still will have questions