Time for a check-in about this quarter’s community governance measures.
The total rewards bucket for Q1/2024 will be 30M Algos, and we will ask governors to vote on the DeFi portion of this allocation, including Targeted DeFi rewards.
During 2023, we began moderating the amount of Algos spent and allocated to governance as rewards. Annual amounts budgeted for governance incentives were 281M Algo for 2022, 220.5M for 2023, and 105M Algo has been provisionally budgeted for 2024, with quarterly allocations of 30M Algo, 27.5M, 25.0M, 22.5M for GP 10 to GP13 respectively.
Underpinning more efficient governance spending has been the development of a significant range of “value-added,” community-sponsored incentive schemes: DeFi Incentives, Targeted protocol level DeFi incentives, xGov pilot funding, NFT purchases, and NFT Rewards Program.
As we think about how governance will continue to evolve, we envision a mechanism that rewards activities that bring greater value to the ecosystem. As announced, we are working on implementing protocol-level rewards for node operators, which might require a boost from our governance funds until we reach an activity level that makes it more self-sustainable.
GP9 measures will ask you to vote on the allocation of governance Algos to our rewards programs, including the split between regular governance and DeFi rewards and the allocation for the NFT Rewards program.
Please add your comments on the DeFi and NFT measures in the threads linked below.
Please add your feedback to each topic and share this post on your favorite social channels.
We will consider your feedback and add the measures to the governance portal a few days before the voting session opens on 1 December.
Looking forward to reading your posts!
Adri & Michele