Algorand Governance Period 10 Updates

Folks Finance
4 min readDec 30, 2023

Double digits of Algorand Governance; what an achievement! Liquid Governance is about to be available across three of the premier blockchain networks. The new location, AVAX, joins BNB Chain and Algorand.

xALGO launches on Avalanche:

Ground was broken in May 2023 when Folks launched xALGO on BNB Chain, the first expansion of Liquid Governance into a new network. By minting xALGO, the Folks community can bring their liquidity from Algorand into BNB Chain to trade, stake, or pool. Meanwhile, the xALGO steadily rises in value due to its innate yield-bearing properties from Algorand governance. This was a significant step for Folks Finance and Algorand DeFi.

Algorand Governance is worth expanding further, and the next stop will be Avalanche. As one of the fastest-growing networks in the industry, Avalanche has captured significant market share with its high speed, low fees, and robust scalability. It’s a network which aligns with the requirements Folks Finance sought before launching on Algorand. Here is an overview of what will happen starting in Q1 2024. Please note that details may be subject to change.

Beginning in Q1 2024:

  • xALGO will be available on Avalanche
  • Deposit ALGO on Algorand, mint xALGO on Avalanche.
  • An xALGO/AVAX pool will be established on Trader Joe.
  • An xALGO/sAVAX pool will be established on Trader Joe, in partnership with Benqi.

xALGO on BNB Chain

Support for xALGO on BNB Chain will continue as usual. 4.88 Million xALGO have been minted at the time of writing.

The minting period for xALGO in Governance 10 opens after January 5th and will last until January 15th, 2024. Learn how to mint xALGO.

gALGO

gALGO continues to grow, with over 3900 governors joining in G9. Now one of the most-used assets on Algorand, more options for applying your gALGO are available than ever before.

The minting period for gALGO in Governance 10 opens on December 31st and will last until January 15th, 2024. Mint gALGO here. Learn how with Folks Academy.

Lending Pools

  • Deposit gALGO and ALGO to earn yield from Pact’s DEX fees and the Folks Lending Markets.

gALGO as Collateral

  • Use your gALGO as collateral to borrow a variety of assets, from stablecoins to crypto to precious metals.
  • Multiply your Governance voting power with Leveraged Commit.

Collect

Use gALGO to purchase pieces on NFT Marketplace partners.

Swap

Exchange your gALGO for other assets and explore the Algorand ecosystem.

ce partners.

Find a complete list of gALGO use cases in our Ecosystem Directory.

Voting Results: Governance Period 9

Algorand Foundation Governance.

Measure 1 — Should the DeFi rewards allocation for the next quarter be 15M or 12.5M Algo per quarter?

The winning option was “15M”.

Measure 2 — Should we run the Targeted DeFi Rewards program in Q1/2024, distributing 7.5M Algo?

The winning option was “yes”.

Measure 3 — Should we run the NFT Rewards program in Q1/2024?

The winning option was “yes”.

Measure 4 — How much for NFT rewards in Q1/2024?

This measure is conditional on Measure 3 passing.

The winning option was “650k ALGO”.

Folks Finance

Measure 1Governance Revenue Distribution

Folks Finance generated a minimum of 1,288,672 ALGO from Liquid Governance during period 9. The proposed allocation of this revenue is as follows:

Community Treasury: 150,000 ALGO

Partners and Ecosystem Adoption: 175,000 ALGO

Business Development: 963,672 ALGO minimum (amount is likely to increase with APR as Gov9 continues)

The community voted to “Allocate funds as described above.

Measure 2 — Revised proposal for diversifying the Folks Finance Community Treasury.

In light of our recent experience and market analysis, we propose a strategic enhancement to our treasury diversification. This proposal considers our past performance and introduces new, tailored asset allocation strategies to align with our community’s diverse risk preferences voted on last period. Measure 3 outlines two potential options considering this proposal is approved.

The community voted to “Approve a revisal of the Folks Finance Treasury funds.

Measure 3 — Selecting how to diversify the Folks Finance Treasury

Since our last strategy implementation, we’ve seen significant changes in our treasury composition:

Initial Allocation:

  • ALGO/gALGO: 85.47%
  • USDC: 10.89%
  • USDT: 1.55%
  • Others: 2.09%

Current Allocation:

  • ALGO/gALGO: 61.671%
  • USDC: 29.140%
  • USDT: 6.934%
  • Others: 2.256%

To further optimize our treasury, we propose two new asset allocation strategies. If the previous vote passes, which of the listed options would you prefer to be implemented into the treasury diversification strategy?

Conservative Allocation:

  • ALGO/gALGO: 5.40%
  • USDC: 72.00%
  • USDT: 18.00%
  • BTC: 3.00%
  • ETH: 1.40%
  • Others: 0.20%

Risky Allocation:

  • ALGO/gALGO: 27%
  • USDC: 40%
  • USDT: 10%
  • BTC: 15%
  • ETH: 7%
  • Others: 1%

Execution Plan

Phase 1 (Rebalancing): Implement the chosen asset allocation strategy and commence the process of adjusting our holdings (bi-weekly swaps) to align with the new targets.

Phase 2 (Evaluation): Conduct quarterly assessments of the treasury’s performance and market conditions to adapt and refine our strategy.

The community voted for “Risky Allocation”.

Wrapping Up

Thanks for being a part of this journey, for using Folks Finance, and for leading the DeFi revolution. We appreciate you!

  • Folks Team

Join us on our social media: https://linktr.ee/FolksFinance

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Folks Finance

DeFi at its finest: lend, borrow, trade, and manage digital assets all in one place.