Algorand Governance Period 9 Updates
Algorand Governance officially turns 2 years old! Thankfully, Folks Finance has already toddler-proofed their product suite with all the best tools to make the most of being an Algorand Governor. Whether using gALGO or xALGO, joining Governance through Folks Finance gives access to the highest reliable yield on ALGO. Let’s jump into the options you’ll have if you choose to participate in Governance Period 9.
gALGO: Currently the most popular governance solution on the market, and for good reason, gALGO offers unparalleled flexibility and benefits in comparison to other governance options. All you have to do is commit ALGO and you’ll mint gALGO at a 1:1 rate. As your ALGO collects rewards from Governance, the gALGO remains liquid and usable around the ecosystem. Fully tradable and spendable through our partners, it’s a win-win for DeFi users. gALGO also eliminates the need to vote in governance, and allows you to leverage your commitment up to 4x to amplify your rewards. Plus, you can join in Consensus and help secure the Algorand network! If you like the flexibility of DeFi, you’ll love gALGO. Learn how to get started here.
xALGO: The only cross-chain governance solution remains an attractive option for those looking to explore the BNB Chain ecosystem. xALGO bolsters the decentralization of governance voters and holders of Algorand by provided ALGO exposure to the BNB Chain community, which is the largest in DeFi. xALGO is fully liquid, like gALGO, and can be traded or pooled on our partner DEX, Pancakeswap, which provides another potential source of yield. Another great thing about xALGO: no need to recommit at the end of the quarter. Keep your xALGO on BNB chain to continue compounding rewards, and jump between Algorand and BNB chain with a few clicks! Learn how to mint xALGO with this tutorial.
There are a few ways to structure a Liquid Governance strategy, some of which will follow below:
Leveraged Commit: Multiply your commitment by up to 4x to increase your voting power and your APY.
Lending Pools: Use your gALGO to contribute to the gALGO/ALGO Lending Pool on Pact, currently offering significant incentives for participation alongside the standard trading fee and lending market fee accrual.
PancakeSwap: Pool your xALGO with BNB on Pancakeswap to earn trading fees on top of the governance rewards you’ll earn.
Liquidity Provision: Provide Liquidity for a gALGO pairing in any pool. Then, you can commit the LP tokens into traditional governance to pad your voting power and APY.
Trading: With gALGO being one of the most liquid assets on Algorand, it’s easy to start trading ASAs after committing to Liquid Governance.
NFTs and Gaming: gALGO is accepted as a method of payment in many leading NFT marketplaces. It’s also accepted as payment in some games, or able to be won in friendly competition.
Find a complete list of gALGO use cases in our Ecosystem Directory.
DeFi Rewards Boost
We’re thrilled to announce that DeFi Rewards will be boosted again in G9! Thanks to the support of the Algorand Foundation, Folks will be distributing ALGO to liquidity providers participating in Lending Pools, Lending Markets, and Liquid Governance. Beyond DeFi, some rewards will be used in campaigns to onboard users to the Algorand ecosystem with the goal of boosting TVL, volume, and active wallets. Stay tuned for more announcements about allocation of rewards!
What happened in previous governance votes?
Let’s quickly recap the results of G8’s votes.
Algorand:
Measure 1 — Should Algo from governance rewards be allocated to the xGov Community Grants program after the initial 2M Algo allocation has been exhausted?
The winning option was “yes”.
Measure 2 — What amount of Algo from governance rewards should be allocated for distribution through the xGov community grants program?
The winning option was “Add up to 2M Algo per quarter”.
Measure 3 — Should we run the NFT Rewards program in Q4/2023?
The winning option was “yes”.
Measure 4 — How much Algo should we allocate to the NFT rewards program in Q4/2023?
The winning option was “500K ALGO”.
To find the full descriptions of each voting measure here, click here.
Folks Finance
Measure 1 — COOP token listing on Folks Finance.
The winning option was “Deny COOP listing”.
Measure 2 — Diversifying the Folks Finance Treasury?
The winning option was “Approve the diversification strategy”.
Measure 3 — Liquid Governance Sustainability Fee.
The winning option was “Approve the Liquid Governance Sustainability Fee”.
Measure 4 — Liquid Governance Sustainability Fee allocation.
The winning option was “Allocate half the revenue to business development and half to the Community Treasury”.
Measure 5 — Governance revenue distribution.
The winning option was “Approve the revenue allocation”
Measure 6— Folks Finance Technical Explanation Video.
The winning option was “Approve allocation of $3000 from gALGO Business Development to support the creation of this video”.
To find the full descriptions of each voting measure here, click here.
Let’s celebrate 2 years of Algorand governance by making this the biggest and best period yet!
— The Folks Team
