First of all, I’d like to congratulate the Foundation on improving the proposed Q4 governance measures after the huge feedback by the community, that’s another great step towards a higher degree of decentralization.
My proposal is about measure 1, I think both the Foundation and the community agree that DeFi is a very important piece in the Algorand ecosystem, we’ve also experienced a substantial growth in TVL and liquidity during this quarter because governors previously voted to allocate an extra 7M ALGO reward for DeFi governors, this measure has proven to be very healthy to the DeFi ecosystem and we were one of very few blockchains to grow DeFi (perhaps the only one in the top 100?) while many other chains struggled with current market conditions.
The original Measure 1 proposal was to choose between the allocation of 30M for vanilla governance and 15M to DeFi governance (option A) or the allocation of 35M for vanilla governance and 10M to DeFi governance (option B), the Foundation supported option A.
Looking at the reworked governance measures, specifically measure 1, we are effectively voting to implement option B when we choose to allocate 10M ALGO to DeFi governance, this seems a bit low given the current momentum of the DeFi space in Algorand and it doesn’t make much sense given the previous support of the Foundation for option A.
I suggest increasing from 10M to 15M ALGO in the measure 1 vote
Looking forward to hear your feedback,
Thank you all
Totally agreed! We need more incentives for defi mass adoption and regular governance does not provide that. Having an incentive to bring new people to algorand defi is essential for dapps um the algorand ecosyatem to survive the bearmarket.
Governance rewards have been well discussed within the community. The facts are:
Vanilla Governance rewards are misaligned with ecosystem growth goals and actually hold back ecosystem growth.
Governance DeFI rewards were a big success. Under the worst of bear market conditions, Algorand DeFi liquidity has had healthy growth.
The bottom line is liquidity growth is required for DeFi ecosystem growth, which ultimately results in transaction volume growth and DeFi protocol revenue growth. DeFi incentives are required to prime the pump and attract liquidity providers to bootstrap Algorand DeFi. DeFi liquidity growth attracts more users, investors, and projects. This leads to transaction volume and revenue growth, and eventually self-sustaining organic growth.
We need to build on this momentum and do all we can to further accelerate DeFi ecosystem growth. If something doesn’t work, then we should stop doing it. If something works well, then we should do even more of it. Applying that logic, I propose eliminating the vanilla Governance rewards in their entirety and allocating all Governance rewards to DeFi.
I hear you and agree, but I don’t think the community is ready for such a drastic step. Too many are throwing their hands up and crying foul about having the “No” option taken away on Measure 1 as it stands. Hopefully in time, what we are saying will be plain as day and we can make that step then.
Somehow I got confused by the reworked measures, I thought we were voting to allocate 10M ALGO to DeFi governance each quarter (20M total), and if the vote failed we would only get vanilla governance rewards (90M total).