Algorand's Governance program is transitioning after three and a half successful years, making way for the new Staking Rewards system. This change aims to enhance network security and technical decentralization while maintaining community involvement in decision-making.

Governance Program Achievement Highlights

• Total Algo committed: 33.9 billion
• Average commitment per period: 2.4 billion Algo
• Peak commitment: 3.8 billion Algo
• Average governor participation: 25,000 per period
• Highest participation: Nearly 50,000 governors

Total Rewards Distribution

Total distributed: 687,500,000 Algo, allocated as follows:

• Direct governance rewards: 526,782,728 Algo
• DeFi Rewards: 110,904,577 Algo
• Targeted DeFi Rewards: 43,595,423 Algo
• xGov pilot grants: 4,267,272 Algo
• NFT rewards: 1,650,000 Algo
• NFT community collection: 300,000 Algo

Future Governance Structure

The new governance model features:

• Non-incentivized ad hoc voting sessions
• Four-week governance periods (2 weeks commitment + 2 weeks voting)
• First new period starting in Q2
• Updated governance portal with new guides

xGov Program Development

The new xGov platform will:

• Fund open-source, retroactive grants
• Launch on testnet in Q2
• Enable community review of grant proposals
• Allow submission of broader community measures

xGov Council

The newly established xGov council will:

• Review grant proposals
• Guide proposal quality
• Be elected by the community
• Open to experienced Algo holders

The transition marks a significant evolution in Algorand's ecosystem, emphasizing security, sustainability, and community-driven governance. The new structure maintains community involvement while strengthening network decentralization through staking rewards.

These changes reflect Algorand's commitment to developing a more secure, decentralized, and community-driven blockchain platform, setting the stage for sustainable future growth and development.

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