The activation of the xGov program is almost upon us. The Algorand Foundation is moving toward bringing the highly-anticipated feature to mainnet, and as the leading DeFi protocol on Algorand, we’re working alongside them to build integrations.
During the next commitment period starting in April, governors must decide whether they want to be an xGov. Being an xGov comes with a lot of responsibilities, including but not limited to:
Committing your ALGO rewards from regular Algo governance rewards for a year
Using all your available votes amongst proposals each time a voting period occurs.
Failure to fulfil your xGov duties will result in disqualification. The consequences of disqualification are significant, as the xGov will lose the rewards that were committed when they entered the xGov process. See ARC33 and ARC34 for full details about the xGov program.
The Folks Finance team would like to collect feedback about the community’s interest in the xGov program:
Are you at all interested in participating in the xGov program?
Would you stop using Liquid Governance if it did not allow you to become an xGov?
Is xGov more important to you than the option to early claim your rewards?
Please note that Liquid Governance would only allow governors the ability to become xGovs. After that, individual governors will be responsible for managing their own xGov participation and status.
I think honestly I was a lot more interested until the recent news about MyAlgo being potentially compromised and people being advised to move wallets or rekey.
Making a year long commitment to a system where you’re not sure if you can trust your wallet to be in your control to vote or to be there to receive the rewards at a later time makes it much less attractive.
I am very happy that the governance of algorand will take a step forward and also very excited to be part of it to make an increasingly active contribution of mine.
In any case I don’t think I will stop liquid governance of FF, I will probably just go and commit a good portion of my algo funds to keep an active part in the ecosystem.
but I was thinking if a liquid xgov was created so that I could participate from xgov within the folks finance portal as in the current liquid governance?
Are you at all interested in participating in the xGov program?
I am very interested in participating in xGov!
Would you stop using Liquid Governance if it did not allow you to become an xGov?
I wouldn’t stop using Folks Liquid Governance, but I might re-allocate some funds to an xGov portal that fit my needs.
Is xGov more important to you than the option to early claim your rewards?
I don’t typically Early Claim, so yes. I recognize this may not be the case for all.
Please note that Liquid Governance would only allow governors the ability to become xGovs. After that, individual governors will be responsible for managing their own xGov participation and status.
I’m curious if we can elaborate on this a little bit because I feel this can be interpreted a lot of ways. In any case, my first takeaway on how Folks might be able to implement xGov uniquely was to integrate an Early Claim feature into the xGov portion of the Liquid Governance on Folks with the same revenue-focused approach of locking in your APR in exchange for gAlgo with the potential for other xGovs to become ineligible and Folks to keep the difference in %.
From the way I interpret the question on having to choose between Early Claim and xGov and this last bit about only making it possible to become xGov but not managing the rest after, I’m asking myself, what if we passed an internal vote as we did in V1 to allow users to vote how “Abstained” votes would be treated internally on Folks? Would this be possible given the current structure?
Also, I’m wondering if this also implies that the the actual voting and proposal mechanisms, and/or rewards handling would possibly not be handled by Folks?
Some additional clarity or comment on any or all of these questions would help inform what actions I might consider in the event of “X” scenario-style questions and feedback.
Are you at all interested in participating in the xGov program?
Yes, very interested in participating in XGov.
Would you stop using Liquid Governance if it did not allow you to become an xGov?
I wouldn’t stop using Folks buy I would allocate a smaller amount into Folks and use the rest to participate in Xgov. Would prefer participate using Folks though.
Is xGov more important to you than the option to early claim your rewards?
Absolutely, we need to decentralize it.
The benefit is lending your voice and vote to the Algorand community for the betterment of all. If it is APR you are talking about here, then it is probably more beneficial to stay in general governance.
will folks finance have a option where I can have my gAlgo automatically get committed from one gov period to the next governance without me taking any actions?
I agree this is needed. I was told it’s available for Xalgo but not Galgo. It needs to be available on both chains. I really don’t want to perform a taxable transaction every quarter.