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Governance Period 5 Update on LP Commitment

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Algorand Foundation

October 7th, 2022 - The sign up window for period 5 of Algorand Community Governance is currently open for would-be governors to participate until October 15th, 2022 (SGT).

The passage of Measure 1 on the last ballot (Period 4, Measure 1 - Algorand Community Governance) ''allocating 7M ALGO from the Q4 2022 governance rewards to DeFi governors" facilitates DEX LP tokens now being committed to governance. Would-be governors who sign up and commit to period 5 now have the choice to commit eligible LP tokens. A Governor can now specify how many of the LP tokens they want to commit, along with their Algo commitment.

LP tokens of DEX pools including ALGOs vs Assets with a balance of at least 10,000 ALGOs as of August 15 2022 are eligible to be committed to governance this period. LP tokens can be committed during the sign-up window and the LP-token balance of a governor will be tracked in the same way as their ALGO balance.

‍UPDATE ON LP COMMITMENTS TO GOVERNANCE:

Due to the close proximity of the last vote, some DeFi platforms with LP-token staking were not able to integrate their solutions with Algorand governance in time for this period. The Algorand Foundation will therefore make partial accommodations, allowing staking of LP tokens in central pools whilst also using the same tokens to participate in governance.

‍Technical details of how this will be implemented in the relevant projects will be announced by the projects themselves. In all cases, governors will still be required to send a sign-up transaction, from their own wallet, consisting of their ALGO and/or LP tokens commitments. Additionally, the Foundation still requires that the entire commitment amount remains under the control of the committed governor throughout the entire governance period. We will post further updates as they become available.

You can visit the Algorand Governance Forum for further discussion or email governance@algorand.foundation with any inquiries.

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