Measure 1 - Approval of xGov pilot program allocation top up mechanism
This quarter we have launched the first iteration of our xGov program, where xGovs analyze community grants proposals and select them for funding. Governors strongly approved the allocation of 2M Algo to this program when GP5’s Measure 3 passed with 69.05% approval. The program is still in its pilot phase and is designed with the community using our ARC process.
For the first voting session, 26 projects have submitted proposals to xGov for a grand total of about 5M Algo of funding (i.e. if all funding requests were to be granted). The community is still iterating the xGov MVP so it can effectively filter funding requests and be used to collectively select the ones that will create the most impact for our ecosystem.
Discussions have begun amongst xGovs in our social channels about increasing funding for the pilot phase of this program, anticipating that the 2M Algo already allocated by the community may be fully distributed before voting session #2.
This measure seeks approval to automatically top up the xGov grants allocation by tapping into the quarterly governance rewards available.
A maximum of two top-ups would occur during the pilot, if and when the remaining funds available to xGovs drop below 1M Algo.
[We consider that having a threshold of Algo that can be drawn upon every quarter might be a good short-term solution whilst we still work with the community to improve the program. If the threshold isn’t met within the quarter, the remaining amount would be distributed as rewards.
For example, a threshold of 2M Algo per quarter is set for the duration of the pilot. At every quarter the amount of approved grants cannot exceed that 2M Algo threshold. If xGovs approve only 1M in grants for Q1/2024, then the remaining 1M would be distributed as governance rewards for GP10.]
The Algorand Foundation supports option A.
Should Algo from governance rewards be allocated to the xGov community grants program after the initial 2M Algo allocation has been exhausted?
Option A - Yes
Option B - No
Measure 2 - xGov top-up amount
This measure is conditional on the measure above (1) to approve allocation passing. Governors must vote on this measure, even if they voted “No” on measure (1).
This measure proposes creating a threshold of (up to) 2M Algo per quarter during the pilot to be allocated to the xGov grants program from governance rewards.
If the total amount of grants approved is less than the threshold, the remainder will be distributed as governance rewards. When the program is better formed, with clearer rules and a better interface, we will readdress the program’s funding needs.
As per the example above, if a threshold of 2M Algo is set per quarter, the total amount of approved grants cannot exceed that 2M Algo threshold. If xGovs approve only 1M in grants, then the remaining 1M would be normally distributed as governance rewards.
The Foundation supports option A.
What amount of Algo from governance rewards should be allocated for distribution through the xGov community grants program?
Option A - Add up to 2M Algo
Option B - Add up to 1M Algo