GP8 Measures DRAFT for Community Feedback

Governance Governance Measures
42

My thoughts are following, in order of importance:

  1. Algorand is a Proof Of Stake network, fundamentally staking, participation in consensus, should be incentivised, and not actual node running. If AF removes its stake from online, someone else will take its place, because it is financially viable. This would ensure the network survival, even if AF doesn’t exist anymore or maybe even if Algorand protocol needs to be tweaked to make it slightly inflationary to pay for consensus security beyond 2030.

  2. Most stakers would opt in running their own node anyway, to avoid sharing their part keys. But this should be optional, so that the Algorand creates a business model for the community where you can delegate Node running to more professional ppl, and to allow staking your Algo online for non-technical users, otherwise a huge cohort of ppl and tokens will be on the sidelines.

  1. Networks grow adoption by creating business models for its users, look at the Internet.

  1. I am generally against incentives for applications, DeFi & NFTs are just applications, service providers like Folks Finance, Tinyman, NFT market places etc. should compete for survival by offering better quality of service to attract more users.

  2. BUT Targeted DeFi rewards are crucial for maintaining the TVL in this bear market. And since those rewards incentivise users to provide liquidity on the network, it’s like a core fundamental feature that Algorand could offer, almost as important as consensus. I wish it was part of the protocol, not sure if technically possible.

  3. Government incentives - I kind of think this one might not have the desired outcome, does it really increase adoption or engagement by clicking a few buttons and locking your Algo? I think locking your Algo might have the opposite effect and decrease velocity of Algo on the network, holders would be spending more if they were not required to lock their Algo, which would obviously benefit all other applications on the network. Having your own money in the network is already an incentive to participate in Governance.

Hope those points make sense.

3 Likes
43

I actually like your idea. Algo lying in Governance is still too many

1 Like
44

+1 on that proposal.
There is a lot of Algos sitting in wallets that farm rewards from trad governance without doing anything to contribute to the growth or security of the ecosystem. While for other chains they’d at least have to delegate the stake to an operator, which is the main difference on user behavior between Algorand model and other PoS chains. Many of those wallets are not contributing to DeFi because they don’t want to have any risk, but there is no reason to keep that stake idle.

4 Likes
45

Couldn’t agree more on simplicity and clarity being key