Redemption & Rewards Distribution
Algorand Governance Period 6 is ending on March 31st. The Algorand Foundation will distribute rewards in the following few days and Liquid Governors will be able to claim them on app.folks.finance.
At the end of the governance period, users can redeem gALGO for ALGO at a one-to-one exchange rate. gALGO must be redeemed during the redemption window in order to unlock the ALGO which backs it. If gALGO is not redeemed, it will remain in the ecosystem, but will be inactive in Algorand Governance, and will not earn yield in the next governance period. The redemption window for gALGO in Gov7 will be open from April 1st to April 7th.
Committing ALGO for Governance 7
Governance Period 7 begins on April 1st. With the commitment period open up until April 21st, users can commit their ALGO into Liquid Governance by minting 1 gALGO for every ALGO committed. Any user that mints gALGO during this time will receive the governance rewards.
When committing, you can use Leveraged Commit to automatically multiply your ALGO commitment up to 4x larger, earning up to 4x more rewards! Learn how to use Leveraged Commit with this video from Folks Academy.
Gov7 will be the first quarter of the xGov program being live. Folks Finance has redesigned Liquid Governance to support xGov signup. If you’re willing to sign up as an xGov in Algo Liquid Governance Q2 2023, please see our medium article which details the subject.
If you leveraged your Gov6 commitment, you can now repay the ALGO loan with your $ALGO collateral at a 1:1 rate thanks to the ‘Repay Using Collateral Redemption’ feature.
If you participated in Gov6 and want to participate in Gov7 with the same ALGO commitment, redeeming and committing again is essential for participating.
It’s important to note that the periods for redeeming and receiving new gALGO cannot overlap. If the redemption window of the last gov period overlapped with the distribution period of the next gov period, a user could potentially commit ALGO in the new period, receive gALGO (guaranteeing himself rewards), and then redeem that gALGO in the old period. This would steal governance rewards for that user, as they would earn rewards without having to truly commit ALGO. Therefore, the windows of redemption and gALGO distribution cannot overlap.
That’s why if users commit while the redemption window is still open, the committed gALGOs will be transferred to their wallet as soon as the redeem phase is finished. Users will still be able to unmint and get the ALGO back before the end of the commit period.
Be ready to collect your rewards, then redeem and remint your gALGO starting April 1st!
Check the Folks Finance Docs to understand how Algo Liquid Governance works.