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Algorand decentralized governance incentive model at a glance

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The Algorand Decentralized governance program, which will be launched in October, aims to recognize those who participate in ecological construction with a very substantial governance incentive rate.

The original title: "governance incentive model view | Algorand decentralized governance program is about to start in October,

Original source: Algorand Foundation

The Algorand decentralized governance plan will be launched in October. Prior to that, any Algo holder could apply to become governor by promising to lock up Algo for three months and vote during that time. Governors will be rewarded at the end of the three-month governance period for their participation in Algorand community building.

The incentive model of decentralized community governance aims to commend the governors who participate in Algorand ecological construction and participate in voting through a very substantial governance incentive rate.

Here's a look at the range of rewards available to governors in the first period of governance, which began Oct. 1:

It is important to note that the existing participation rewards program will continue until the end of 2021, i.e., participation rewards will run parallel to governance rewards in the fourth quarter of 2021. As a result, Algorand governors who hold Algo in online wallets will receive their participation rewards as before.

Participation rewards currently have an annualized rate of 5.6%. In addition, the first phase of governance will be allocated. 60 million & have spent Algo Reward, according toBlockbuster proposal | Algorand decentralized governanceThe calculation method of the rewards listed in "governance rewards will vary according to the participation of the governance program at that time:

· If this quarter has 4 billion Algo Put into the governance account, then the return on each Algo invested in the quarter is 60 million /4 billion = 1.5%, corresponding to an annualized return of 6%, and on top of that, plus participation rewards, the total return is 12%.

· If this quarter has 2 billion Algo Put into the governance account, then the return on each Algo invested in the quarter is 60 million /2 billion = 3%, corresponding to an annualized return of 12%, and on top of that, plus participation rewards, the total return is 18%.

· If this quarter has If 1 billion Algo is invested in the governance account, the return on each Algo invested in the quarter is 60 million /1 billion = 6%, corresponding to an annualized return of &nbSP; 24%. On top of that, plus participation rewards, the total return is 30%.

Algorand governors who participate in the first phase of governance can expect to receive an annualized rate of 5.6% from the previous participation incentive model, and on top of that, a governance incentive rate with a high probability of 6% to 24% (annualized). Therefore, governors can expect to receive an overall annualized reward rate in the range of 12 to 30 percent in the first phase of governance. This is the expected upper and lower reward levels, and the controller's initial reward rate will fall somewhere in between. This is arguably the most generous governance reward model in the leading, decentralized, Layer-1 Layer 1 protocol (and can be easily participated by any Algo holder).

The incentive level of the first phase of governance and theLong-term Development Dynamic Model of ALGO Token (Full version)"& have spent We will elaborate on the sustainability of the decentralized governance plan in the Algo Economic Development Report to be released later. Please stay tuned.