Algorand Governance: Shaping the Future of the Blockchain and Earning ALGO Rewards

By 2sats | 2sats | 11 Oct 2021


*obligatory not financial advice*

 

Algorand is a smart contract blockchain that is known for its speed and low transaction fees. Due to its scalability, it has drawn the interest of countless investors, businesses and even governments. One problem, however, is that the blockchain entirely depends on the decisions of its founders, but this will now slowly change with the on-chain governance that will allow all ALGO holders to vote on possible changes and updates.

By participating in governance, you are not only helping to shape the future of the blockchain, but you are also getting additional rewards. Depending on how much ALGO is being used for governance, you can get an APY of 6-24% on top of the regular 6% that all ALGO holders currently receive. The only downside is that you shouldn't use your ALGO during the commitment period of 3 months because you wouldn't get the rewards in that case.

 

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When you want to participate in governance you can choose how much ALGO you are committing to it, the more ALGO you have the more does your vote count, this is done because someone who is deeply invested in ALGO will want the network to succeed. The amount of ALGO you decided to use can technically still be accessed by you during the governance period, but you will not get any rewards if you spent it.

The very first governance period has recently started, and you can register yourself for governance until the 14th October, after that your funds will be committed until 31st December and you will earn governance rewards during that time, but only if you vote on proposals. The first vote is about whenever governance participants should only not get a reward if they don't vote, or if they should get 8% of their committed ALGO slashed.

If you are invested in ALGO then you should absolutely participate in governance to help shape its future and be rewarded for it. You can do that by visiting the Algorand Foundation Governance website and connect it to an ALGO Browser wallet, like the MyAlgoWallet, and commit an amount you know you will not need for the next 3 months.

 

 

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