Algorand is the first Blockchain in the world to effectively and efficiently solve the Blockchain trilemma issue, hence being totally secure, totally scalable and totally decentralised.
And with decentralisation on a Blockchain comes the need for governance, which enables account holders or network participants to reach a consensus on prioritising & agreeing on actions and decisions for the progressive ecosystem of the Blockchain.
The Goal of the Algorand Governance Proposal
According to Silvio Micali, the goal is;
“decentralizing Algorand governance, and aligning network rewards with such governance. More precisely, it is putting forward the mechanics and incentives guaranteeing a governance that, just like our consensus protocol, is simultaneously decentralized, secure, and efficient.”
Essentially, Algorand is making governance on its Blockchain open to every Algorand account and incentivized in such a way that efficiently removes problems with automated scripts, spamming, and the situation of account holders setting up codes to arbitrarily vote on any agenda for the purpose of earning incentives rather than for the growth of the ecosystem. The governance process will be just as decentralised, secure and efficient as the Algorand Blockchain.
Since full decentralization has been achieved on the protocol level, it’s time to also achieve full decentralization on the governance level.
The Features Of The Algorand Governance Proposal
First is the ability to choose to be a governing account or not, any Algorand account can decide to participate or not to participate in the decentralised governance of the Algorand Blockchain.
It is Monitored
Governing accounts are strictly monitored to ensure authentic participation in governance with the prevention of spamming by including transaction fees greater than a mili algo. These fees ensure that account holders don’t abuse the governance platform by either raising agendas that don’t support the progress of the ecosystem, or taking advantage of traction and viewability by spamming irrelevant content.
It Requires Responsibility and Accountability of Governing Accounts
To ensure responsible decentralisation of the governing network which determines that governing accounts partake in the effect of their voting decisions, they’re accounts serve for one year lock, while earning rewards which can be withdrawn.
It is Incentivised
Governing accounts will earn “unlocked” rewards or incentives for their participation in governance on the Blockchain network.
The Features of the Algorand Governance in Voting
The voting process is broken in some fundamental aspects, voting sessions, voting deadlines, flexibility in voting options,validity of votes and many more. Like all voting activities, an agenda must be raised and a consensus must be reached within a specific time frame.
Voting sessions are used to create or post agendas on the blockchain for voting by;
- titling and assigning an ID number to the agenda
- A summary on the subject and external link relevant to the description of the
- A yes no voting decision option on the subject
Voting deadlines are maximum 30 days to give governing accounts time to make their analysis and come to a consensus and only votes posted within the 30-day period are deemed valid.
Voting options and flexibility in making decisions are set such that governing accounts can either choose to vote independently or go with the Algoran Foundation’s decision. Users can choose to VWF (Vote With the Foundation) or ignore and vote independently what they want to happen.
The validity of the vote, and it’s determining outcome of a governing account is directly proportional to the weight of it’s locked tokens. Hence, someone who has 10,000 Algos locked has more weight in his votes over another who has 100 Algos locked. This ensures that those who have more at stake will be propelled to vote in support to agendas that increase the functionality and profitability of the Algorand Blockchain and community.
Vote transparency is achieved when subjects or items for consensus are posted on the blockchain and the vote of the foundation is published continually through the voting process. Consequently the foundation will be the first ones to vote before others, and their votes must be published during the voting activity.
Benefits of this Proposal
Since Algorand has achieved full decentralization in the protocol level, it’s time to achieve full decentralization in the governance level, this would increase block activity on the Algorand Blockchain network.
Increase in Scarcity of Algos
Since Algos would be locked for a year and also would be used for fees, it’ll increase it’s scarcity on the market and also thereby increase price in the long term.
This will increase the participation of Algorand community members in carrying out activities for the progressive ecosystem of the Algorand Blockchain.
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