Algorand Initiates Voting for Expanded Governance and NFT Rewards Programs
Rebeca Moen Sep 03, 2023 13:50
The Algorand Foundation is voting on governance measures, including auto-renewal mechanisms and increased NFT rewards, amid a plummeting native token, $ALGO.
Key Takeaways
- Algorand Foundation opened voting for its Period 8 governance measures from September 1 to September 15, 2023.
- The foundation aims to auto-renew the xGov Grants Program and increase allocation for the NFT Rewards Program.
- Total stake voted so far stands at 575.7 million Algo, with 7.8K governors participating.
- The native token $ALGO has seen a sharp decline from $3 in 2021 to its current price of $0.094.
Governance Measures in Focus
The Algorand Foundation has entered the voting phase for Period 8, Session 1, focusing on initiatives including the xGov Grants Program and the NFT Rewards Program. The voting window is open from September 1, 2023, until September 15, 2023, and has already seen 575.7 million Algo staked and 7.8K governors participating.
The core of the voting session is aimed at auto-renewal mechanisms for the xGov grants and an increased allocation for the NFT rewards scheme. Preliminary results show strong approval from the Algorand community.
Although the Algorand Foundation is working to expand its ecosystem and add more functions, its native token, $ALGO, has plummeted from $3 in 2021 to just $0.094.
xGov Grants Program: Piloting for Sustainability
The xGov Grants Program is in its pilot phase, and 26 projects have submitted proposals for grants amounting to around 5 million Algo. The community aims to refine the xGov Minimum Viable Product (MVP) to better filter and select impactful projects. This voting session also includes a measure that seeks to "automatically top up the xGov grant allocations by tapping into the quarterly governance rewards available."
If approved, the top-up mechanism will activate when the remaining grant funds drop below 1 million Algo, ensuring continuity. Currently, the measure has gained 76.68% approval, according to the foundation’s data.
NFT Rewards Program: Measuring Success and Proposing Expansion
The NFT Rewards Program initially allocated 500K Algo to boost Algorand's NFT community. Since its launch in late July to early August 2023, the program has seen significant results. For instance, Rand Gallery experienced a 4X jump in transaction volume within the first week of the program. Another platform, Shuffl, saw a notable increase in listings and user engagement, while Algogems doubled its monthly volume to 33K by mid-August.
The current voting session proposes to extend the NFT rewards program and increase the allocation from 500K to 1 million Algo. However, this measure has so far received less favor, with only 42.23% approval, according to current data.
Future Outlook
These governance measures provide an outlook into how the Algorand Foundation is seeking to sustainably manage the grant allocation and strategically incentivize its growing NFT ecosystem. The decisions made during this voting session will play a critical role in shaping the Algorand community’s initiatives for the upcoming fourth quarter of 2023.
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