DeFi Allocation: 50% of the total Rewards
The community voted strongly to allocate 25M of Algo, from the total 50M Algo available rewards in GP8, to DeFi, with 7.5M Algo distributed directly by the projects through the Targeted DeFi Rewards (TDR) program. The Foundation believes that this more targeted use of rewards has benefited the Algorand ecosystem.
The total amount available for governance rewards distribution in GP10 is 30M Algo and this measure proposes rebalancing the allocation up to 50% of governance rewards to DeFi, including the Targeted DeFi Rewards.
(The Foundation supports option A.)
Measure - Should the DeFi rewards allocation for the next quarter be 15M or 12.5M Algo per quarter?
A Allocate 15M Algo for Q1/2024
B Allocate 12.5M Algo for Q1/2024
Targeted DeFi Rewards Approval
The Targeted DeFi Rewards (TDR) have been deployed during the last three quarters by DeFi dApps to support a wide spectrum of initiatives aiming to acquire and retain users, as well as maintain ecosystem TVL.
Governors have shown their support for DeFi on Algorand by overwhelmingly voting to allocate more funding to both DeFi rewards and Targeted DeFi Rewards programs.
Whereas the TDR program was drafted without much data to inform the criteria for the Terms and Conditions (T&C), now that we have seen its effects on the ecosystem, the participating projects are looking at ways to improve the program’s qualifying and distribution criteria.
The DeFi committee, composed of members of the top 10 DeFi protocols, have started to discuss how the terms and conditions of the program could be modified to guarantee a more fair distribution, but in spite of everyone’s efforts, the T&C review has not progressed to a level that would allow for community review this quarter. Therefore, we will not seek to increase proportionally the amount distributed until this review is completed and reviewed by the community in Q1/2024.
This measure seeks governors approval to run the Targeted DeFi Rewards program in Q1/2024, allocating 7.5M Algo as in Q4. The TDR total amount will be taken from the overall amount approved for DeFi (15 or 12.5M).
(The Foundation supports option A.)
Measure - Should we run the Targeted DeFi Rewards program in Q1/2024, distributing 7.5M Algo?
A. Yes
B. No