Algorand Governance Period 5 will begin on October 1st and run until December 31st, 2022. September 30th concludes the 4th consecutive quarter of governance, marking a full year of the system which has revolutionized our native blockchain.
There are a few specific pieces of information we’d like to draw your attention to as we enter Gov5. Familiarizing yourself with these updates will help you become more comfortable using Liquid Governance in order to maximize its potential flexibility.
It’s important to note there is a burning window of one week (September 30th, 18:00 CET — October 7th 18:00 CET) for previous governance periods’ gALGO. The length of the voting period was determined by a vote of Liquid Governance users during Gov4. In order to unlock the ALGO committed to governance in a previous period, a user must return, or “burn”, gALGO using the Liquid Governance portal. This will enable the user to recommit the ALGO and use it for the new governance period. It also reveals an opportunity to compound the previous period’s rewards into the next, if the user wishes.
It is up to the user whether or not to burn gALGO, but to be eligible for governance rewards, you must mint gALGO by committing ALGO for the current period. There is no penalty for not burning gALGO at the end of a period. However, without burning gALGO, the ALGO previously committed from a wallet will not be unlocked. Therefore, the ALGO locked during previous governance periods will not be able to earn governance rewards until unlocked and recommitted.
In regards to users who would like to immediately recommit their ALGO in liquid governance, there will be an option to mint and burn with a single button. However, the window for burning gALGO and minting new gALGO cannot overlap, as users could potentially mint gALGO in the new period, then burn gALGO from the previous period, stealing rewards from other users. To prevent this, gALGO minted during the burn window between September 30th 18:00 CET, and October 7th 18:00 CET, will be locked until the burn window closes, then released afterward.
There are multiple advantages to utilizing Liquid Governance ahead of traditional governance. First, you can…