Algorand Governance Period 6 (G6) now online

TLDR: Voting period for G6 is now online, vote from Mar 2 2023 - 4:00pm and the 'Cooldown' period starts from Mar 15 2023 - 4:00pm. The governance info can be accessed here: https://governance.algorand.foundation/governance-period-6/period-6-voting-session-1 and you can vote on the following measures:

Measure 1:
Boost allocation to DeFi rewards by 5MM, from 15MM to 20MM Algos
Measure 1 options:
A. Boost DeFi rewards to 20MM Algos
B. Keep DeFi rewards at 15MM Algos

Measure 2:
Use up to 5MM of the “Boost” for Targeted DeFi Rewards
Measure 2 options:
A. Allocate the 5MM “Boost from Measure 1 to the Target DeFi Rewards Program.
B. Do not allocate the 5MM “Boost” from Measure 1 to the Target DeFi Rewards Program

Personally, I am sitting on the fence but not sure increasing DeFi rewards without a proper DeFi infrastructure is the right way forward but what do I know, I am just a degen like the most of you.

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Overview

24 February 2023 - As announced in Q4/2022, the Algorand Foundation will begin moderating the amount of rewards distributed through the General Governance program, or Governance 1.0, for the purpose of shifting the ALGO distribution to programs that focus on ecosystem growth, such as: the on-going DeFi rewards program, the xGov Program, or Governance 2.0 (which will kick off in Q3) as well as other programs that might come to fruition later in the year.

The total amount of rewards for Q2 2023 (GP7) will be 60 MM Algos, of which at least 15MM Algos will be distributed via the currently established DeFi rewards program.

We will evaluate the impact of next quarter’s moderation before defining rates for future periods.

The community sentiment across various platforms is mostly pro-moderation, agreeing that we should be slowing down ALGO inflation and using these funds for more productive uses. Amongst the community sentiment there is also support for enhanced and more timely disclosure of resource allocation generally, which is underway with the use of disclosed structured selling activities (complete) and more frequent transparency reporting (beginning in Q2 2023).

The two measures below are still in draft mode, the wording may still change based on community input.

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Measure 1
Boost allocation to DeFi rewards by 5MM, from 15MM to 20MM Algos

The reallocation of some rewards from General Governance to DeFi rewards has contributed to the growth of our DeFi ecosystem in two meaningful ways:

It helped move users from more passive holding towards more active participation; and

It has attracted users from other ecosystems to our protocol.

This measure proposes to boost DeFi rewards by 5MM, from 15MM to 20MM, via re-allocation from General Governance Rewards to DeFi Rewards.

Voting options for this measure are:

A. Boost DeFi rewards to 20MM Algos
B. Keep DeFi rewards at 15MM Algos

The Foundation supports Option A.

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Measure 2

This measure is conditional on Measure 1 passing. Governors must vote on this measure, even if they voted “No” on measure 1.

This measure proposes that the extra 5MM Algos (“Boost”) from Measure 1 be given to DeFi protocols that fit the criteria below, to be used in targeted activities to attract new DeFi users from within and outside the ecosystem. The goal is to give Defi projects more flexibility in how these rewards are structured and distributed among their user base, targeting rapid growth, deeper DEX liquidity, and incentives for users who come to Algorand in the middle of a governance period.

Rewards under this program will be distributed to projects at the beginning of each governance period, and the projects must distribute at least 95% of them to their users by the end of the period, with the rest distributed in the following period. Projects that fail to distribute rewards directly to users will be ineligible for subsequent periods, until they’ve distributed all the rewards received under this program.

To be eligible to apply to receive ALGO under this program, projects must have high enough TVL comprised of the white-listed assets below. Specifically the TVL of white-listed assets, denominated in ALGO, as counted on March 15, 2023, must be at least 500K Algos. The DeFi Advisory Committee will review applications to ensure the protocol reported TVL is accurate. Approved projects will receive 7500 Algos for each 500K Algos TVL as above, rounded down. Rewards per project are capped at 33% of the total rewards distributed under this program for that period.

White-listed assets: ALGO, gALGO, USDC, USDT, STBL2, goBTC, goETH, PLANETS, GARD, OPUL. The Algorand DeFi advisory committee can add to this list from time to time, by unanimous consent.

In the event that 5MM Algos are not enough for all the projects, the DeFi committee will distribute ALGO to each protocol based on their weighted contribution of TVL to Algorand DeFi. If the entire 5 million are not needed, any remaining funds will be distributed as regular DeFi governance rewards.

See the Terms of the Program for the complete set of rules.

Voting options for this measure are:

A. Allocate the 5MM “Boost from Measure 1 to the Target DeFi Rewards Program.

B. Do not allocate the 5MM “Boost” from Measure 1 to the Target DeFi Rewards Program.

The Foundation supports Option A.

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Happy voting!