Community manages 3.2 billion Algo
The Argoland Foundation, the operator of the decentralized public chain “Algorand,” has submitted a new governance proposal for further decentralization.
If the proposal is passed by the community, a program called the “Governor Program” will be launched, and the community will have the right to decide on 3.2 billion Algo (Argoland’s native token, equivalent to 430 billion yen) currently managed by the Foundation. It is said that it will be transferred to.
Implementation of governor program
Based on the governance proposal of Argoland founder Silvio Micali and reflecting the voices of the community, this governor program aims to further decentralize Argoland governance.
If this proposal is approved by the community, the Foundation will assume the position of governor with a total of 3.2 billion Algo (equivalent to 430 billion yen) of management rights allocated to governance participation fees, research and innovation funds, and grant programs. It will be in the hands of the community represented by. This 3.2 billion Algo is called the Algorand Ecosystem Resource Pool (AERP).
The governor is the Algo holder responsible for the governance of the South African Rand, who has the right to participate in decisions on important ecosystem development matters, including the use of governance funds as described above, through voting. Any Algo holder can be governor, but each vote requires stakes on your Algo for three months. The weight of each vote is determined by the amount of Algo stakes by the governor. Users who stake Algo for three months as governor will be rewarded for it.
Currently, the Foundation is taking the lead in setting up voting, but the Foundation itself does not participate in the governor program. In addition, community approval is essential for the launch of the governor program, and a community vote will be held in the future asking whether or not to make a proposal.
After receiving community approval, the governor system will be implemented in two stages. The first stage will start around Q4 of 2009, and a part of the system will be implemented off-chain. By the first half of 22 years, the entire system will be implemented on-chain and managed by smart contracts.
The current Governance Participation Reward System, which rewards all Algo holders with 1 Algo or higher, is scheduled to continue until the end of 2009, so users who participated in governance in Q4 2009 will have the current governance. You can receive both participation fees and rewards for the Governance Program.
After approving the proposal, 2 billion Algo (about 280 billion yen) out of 3.2 billion AERP will be locked immediately and will not be unlocked for a certain period of time. At this point, the Foundation will relinquish control of this 2 billion Algo. At the end of the governor program’s launch period and the establishment of on-chain governance managed by smart contracts, 2 billion Algo will be unlocked and moved to the governor system.
The remaining 1.2 billion Algo (about 160 billion yen) of AERP will be used for activities during the launch period of the governor program, and when the on-chain system is ready, it will be locked to the same smart contract as other 2 billion Algo. AERP is managed by smart contracts and cannot be unlocked without a governor’s approval vote.
Long-term algo dynamics model
Prior to the announcement of this proposal, Argoland has released a plan “Long-term Argo Dynamics Model” that describes changes in the Algo distribution method, and the introduction of the governor is said to be the second stage of this plan.
In the first place, Algo is a native currency on the Argoland blockchain, and 10 billion Algo was issued in the Genesis block (first block) at the launch of the chain. No additional issues or changes to the number of issues will be made in the future. The 10 billion Algo issued was initially owned by the Foundation, and the introduction of Algo to the market was controlled by the Foundation.
To date, more than half of total issuance has reached the market through the first auction in June 2019, subsequent community rewards, rewards for early investors and relay node operators, grants, and sales. Released.
The original plan was to allocate 3 billion of the 10 billion Algo to discretionary funding and to distribute all 3 billion Algo by 2024, four years after launch.
However, the Argoland Foundation is entitled “Long-Term Argo Dynamics Model” with the aim of encouraging long-term Algo holdings as well as economic and business activities on the blockchain and having a positive impact on the token economy. Under the plan, the end of the distribution period was redesigned from the original 2024 to 2030.
The original Algo distribution plan was designed to benefit all participants in the Algo network. The long-term algo dynamics model is designed to return profits to participants who participate in governance and actively contribute to the network by locking Algo for a long period of time.
It is also designed to avoid inflation and maintain Algo’s rarity in the market, as it has well-defined funding allocation and distribution plans.
Silvio Micali, the founder of Argoland, argues in past governance proposals that underpin this governance proposal that governance in Argoland requires the following elements:
- Spontaneous: Argoland accounts are free to choose to participate or not participate in governance
- Compensation: Governance participants receive compensation
- Monitoring: Accounts that participate in governance are monitored to see if they are actually participating in governance.
- Locking: Governance has a lot to do with the growth of the Argoland ecosystem, so accounts participating in governance must lock their tokens.
Micali also emphasizes that the Foundation’s role in the governance process is merely to help the community and that it is the governor who makes the decisions, and points out the following guidelines for the governance process to follow: ..
- Conduct a voting session that includes name, ID, summary, etc.
- Voting deadline setting
- Maintaining transparency
- Maintaining censorship resistance
- No spam
- Introducing the “Same Voting as Foundation” option
- Only governors can vote, vote weight is proportional to the amount of locked tokens
- Monitor governance participation
- High convenience
- Separation of governance keys
Relation:Algoland version USDC available ──Algorand November Monthly Report ｜ Official Contribution
Reference: Algorand, Algorand
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