Algo Liquid Governance 2.0


The New Design

  1. gALGO is now continuous. There will be a single gALGO asset, not connected to a single governance period (unlike gALGO3 which was only for the third governance period). Moreover, the new smart contracts are built to be flexible and adaptable to the future development of the AF governance through xGov.
  2. New voting system. The Algo liquid governance will allow Folks Finance Liquid Governance users to vote on the Algorand Foundation proposals. Voting will respect our governors’ choices proportionally. In addition, Folks Finance will have its own proposals for how to run the Folks Finance Liquid Governance program.
  3. No Fees & Early Claim. The new Liquid Governance will not have any fees and will allow users to early claim their expected rewards in gALGO. Users will then be able to burn the gALGO rewards for ALGO as usual at the end of the governance period.

Revenue Share with Algorand Partners

  • A user could generate additional yield with their extra gALGO, which is greater than the potential loss in rewards.
  • A user could require additional liquidity for a loan.
  • A user could want to cash out of their position during the governance period.
  • A user could buy an NFT, which they’ve been eyeing up.
  1. Alice mints 100 gALGO and thereby commits 100 ALGO in governance.
  2. At the end of the commitment, the APR is 12%; Alice can early claim 3 gALGO.
  3. A month has passed, and the APR is 13%; Alice early claims 3.25 gALGO.
  4. At the end of the governance, the APR is 14%; the protocol receives 3.5 ALGO for Alice’s commitment.
  5. Alice burns her 3.25 gALGO for 3.25 ALGO; Folks Finance revenue is 0.25 ALGO.
  • gALGO minters, i.e. wallet, protocols, marketplaces etc. that will embed the Algo Liquid Governance commitment (see our SDK)
  • gALGO pools in DeFi i.e. DEXs/Staking/Lending
  • gALGO payment integrators, i.e. NFT marketplaces that gALGO as payment kept at a one-to-one ALGO rate
  • gALGO supporters, i.e. will be gALGO Bullish Bounty winners

Algo Liquid Governance and Aeneas

gALGO and Algorand TVL





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