One of the latest developments in the blockchain world is that of community governance. And while the truth is that blockchain technology and cryptocurrencies are fast becoming popular around the world, not everyone knows what they are or how they work.
Okay, by now, you’ve surely heard everything about Bitcoin, Ethereum, and all the other popular cryptocurrencies like Cardano, Solana, and the way they work. And then there’s Algorand—a continuous consensus protocol that was launched in 2019. And with its new community governance program, Algorand wants to revolutionize the way people give back to their communities and earn rewards for it.
Community governance can be a major contributor to the success of a cryptocurrency. Cryptocurrencies such as AlgoCoin, Algorand, and others are designed to work on a decentralized ledger. This means that the terms of their operations are arranged in the form of smart contracts, which are independent agreements between the parties involved.
Smart contracts can be easily modified by making use of the peer-to-peer protocol which allows users to earn Algorand rewards by joining AlgoCoin’s Community Governance Program (CGP), so let’s find out how you can earn them.
What Exactly Is The Community Governance Model Of Algorand?
The governing structure of the Algorand ecosystem is fully decentralized. Holders of Algorand (ALGO) will be able to benefit from governance incentives and take part in the ecosystem’s decision-making process as a result.
This indicates that governance incentives have taken the place of staking Algorand (and staking rewards) as of early 2022.
What Is The Program Called “Community Governance”?
Starting from 2021, a governor can pledge to represent any Algorand address. You must vote in the expansion and improvement of the Algorand ecosystem in addition to pledging a portion of your ALGO to the initiative for a three-month period to accomplish this. Governors are recognized for their dedication by being allowed to collect governance awards, which are transferred into their governing address, after the three-month period.
Governors
Sending a zero-ALGO transfer to a designated sign-up address with the committed amount of ALGO encoded in the Notes field will allow any address holding ALGO to register as governor during the inception phase. A web portal will be made available by the Algorand Foundation so that anyone can create a sign-up transaction in the required format. Your Exodus Algorand wallet can be used to send this zero-ALGO sign-up transaction.
Voting
The themes that will be voted on during the inception phase will be listed along with the voting procedures for each governance term, according to the Algorand Foundation. Voting will be available for roughly two weeks.
A governor must participate in every voting session that is open during the governance period to comply, and they can do this by sending a zero-ALGO payment transfer from their governor’s account to a predetermined voting address with the vote’s specifics encoded in the Notes field. The number of ALGO that this governor’s accounts committed to during the governing period will be equal to the weight of the vote.
Rewards
The Algorand Foundation will approve and fund a rewards pool, which is an on-chain escrow account, before the start of each three-month governance period. Following the conclusion of the governance term, governor locations that maintained their targeted ALGO level all through the period and took part in all votes are entitled to receive compensation for their efforts. The rewards pool for the time and the quantity of ALGO committed by complying governors are used to calculate the rewards rate.
What Do I Do With My Exodus Wallet?
The Exodus wallet is a platform that allows you to store and send your Algorand coins. It is also the first wallet to be integrated with the Algorand platform, which means it can be used as a payment method for all services on the platform.
The Community Governance Program (CGP) is a new feature of Algorand’s Exodus Wallet that allows you to take part in voting and decision-making as well as receive rewards for doing so. You can also use your Exodus Algorand wallet to send the zero-ALGO transfer (with a note field) required for registration and voting.
When Do The Governance Periods Occur?
Every three months, there will be one of four quarterly governance periods in a given year. The governance program is still in its early stages, therefore the sign-up and voting phases for each period are not set in stone. As a result, dates might alter as the program progresses.
Final Thoughts
The community governance program is an excellent example of how to encourage community participation and keep the network secure and functional. It encourages not only community members to participate by offering incentives, but it also actually helps the network grow quicker. The more people that participate, the better the network will be overall, which is great for everyone involved in the project.