Voting Procedure for EIP-11252019AF
The Algorand Foundation has put forth EIP-11252019AF (“the Proposal”) for a non-linear vesting schedule with accelerated vesting under periods of price increase and guaranteed base rate vesting under opposite market conditions. The Proposal has been discussed by the relay node community and has received significant support and therefore will be put to a vote.
Summary of the Proposal
The vesting freeze continues until 12/31/2019 to allow orderly implementation of the new schedule;
Node Runners receive an additional 25% of their original allocation;
Unvested Algos (125% minus 14% which already vested in 2019) are vested according to the following guaranteed base vesting schedule:
a. In Year 1 (2020), 3% (for a total of 17%)
b. In Year 2 (2021), 8% (for a total of 25%)
c. In Year 3 (2022), 25% (for a total of 50%)
d. In Year 4 (2023), 35% (for a total of 85%)
e. In Year 5 (2024), 40% (for a total of 125%)
Vesting is significantly accelerated as the Algo price increases. Node Runners capture “awards” (additional Algos) as the price goes up, potentially much faster than the base rate, so that full (125%) vesting may be reached much earlier (e.g.,
by Year 3).*
* Please reference EIP-11252019AF for details on the accelerated vesting algorithm.
There will be two steps to this process:
● On-chain vote: An on-chain vote will be conducted to provide transparency to the community about the level of support the Proposal has garnered among the group of relay node runners.
● Formal DocuSign notices: A notice of agreement must be signed via DocuSign to establish formal legally binding consent for this amendment. Anyone who votes against the Proposal should not sign this notice. Once the voting period has begun, the DocuSign notices will be distributed to the group of relay node runners for signing and submission. We ask that all supporters submit their signed notices as soon as possible.
Once this voting process is complete, the results will be published and the outcome will be put into effect.
See below for vote timing, submission instructions, consent principles, and the list of relay node runner addresses.
Vote Blocks, Date & Time
The on-chain vote will open on block 3412600 and end on block 3456000. This period will roughly start Monday, December 2 at 01:00 SGT (Sunday, Dec 1 at noon ET) and last until Wednesday, December 4 at 6:00 SGT (Tuesday, Dec 3 17:00 ET).
Submitting your vote
When the voting period opens, send a micro transaction to one of the following addresses:
● ‘YES’ Vote Transaction Address:
● ‘NO’ Vote Transaction Address:
A ‘YES’ vote indicates support of the Proposal, a ‘NO’ vote indicates you do not support it. Participants may abstain by not voting, which will be counted as a ‘ NO’ vote.
If multiple transactions are sent from the same address, we will only count the last vote from a registered address; please exercise caution when submitting your transaction.
Given the fact that this EIP will affect changes to the existing rewards schedule contained in each Node Agreement, the terms and conditions stipulated in the Node Agreements must be applied to determine how any such amendment can be affected.
Based on the terms in the Node Agreements, a vote of the node runners to change the rewards schedule will be binding provided the consent of both: (i) the Algorand Foundation and (ii) parties to the Node Agreements who collectively run a majority of the Nodes currently under operation pursuant to that group of Node Agreements. The Algorand Foundation confirms it will provide its consent if the majority of nodes vote in favor of the proposal.
With this, the Foundation confirms that the consent threshold for the Proposal shall be determined as follows:
● All relay node runners under the Node Agreements with 2-year rewards schedule are asked to indicate whether they consent to or reject the Proposal.
● A relay node runner who runs more than one Node pursuant to their Node Agreements shall be treated for voting purposes as being a separate node runner for each Node operated. In other words, each Node operated is counted as one vote.
● The Proposal will be considered as approved if a majority of relay node runners indicate their consent. The majority is defined as over 50% of operating Nodes.
● As of Tuesday, November 26 there are 81 operating relay nodes with a 2-year reward schedule.
● If a relay node runner does not respond indicating whether they consent to or reject the Proposal, that relay node runner will be deemed to have rejected the Proposal in respect of all of the Nodes that they run.
● Algorand Inc, Algorand Foundation, Universities & Non-Profits are not eligible to vote.
List of Relay Node Runner Addresses:
Please find list of addresses here.
Total Operating Relay Nodes: 81
*Please note that voting wallet registration is closed. Unregistered relay node runners will be considered “NO” votes.*Please note that voting wallet registration is closed. Unregistered relay node runners will be considered “NO” votes.