Governance Terms
Glossary

Commit Algo

Locking Algo as a condition of signing up for Governance. This is a soft commitment where holders must keep the committed Algo in their wallet for the duration of the Governance Period. If a Governor’s wallet balance falls below the committed amount, they lose the right to vote and receive rewards.

Commit phase, sign-up phase

The first phase of a Governance Period (usually a two-week window) where Algo holders must commit tokens to sign up for Governance. Signing up can take place through the Governance Portal or through a DeFi protocol (see DeFi Governance).

Community Governance

A branch of Algorand Governance that comprises the Governance and xGov programs.

DeFi Governance

Where Algo holders can participate in Governance through a DeFi protocol while maintaining token liquidity that can be used within the Algorand ecosystem.

Escrow address returns

When Algo is sent in error to Governance and xGov escrow addresses, it is usually returned to the origin address around the end of the Governance Period.

Governance DeFi Rewards

Rewards for Governors who participate in Governance through a participating DeFi protocol (see DeFi Governance). These Governors must fulfill their Governor responsibilities of voting on every Measure in every voting session through the respective DeFi protocol to maintain reward eligibility. The DeFi reward balance available varies and is allocated by Governors through Governance Measures.

Governance escrow address

A wallet address controlled by the Foundation that is used to anchor committed tokens and vote transactions, and pay out the rewards after a Governance Period closes. Each Governance Period has its own escrow address, which remains active for a time after the Governance Period ends.

Governance Measure

A proposal put forward for consideration and the decision of the Governors. Each voting session contains a minimum of one Governance Measure. Governors must vote on each Measure to maintain rewards eligibility.

Governance Period (GP)

Three-month cycles in the Governance program that align with calendar quarters, starting in January, April, July, and October. A Governance Period comprises three phases: the commit phase (also known as the sign-up phase), the voting session, and the rewards distribution phase.

Governance Portal

The web portal where Governors can sign up for Governance and vote during a Governance Period.

Governance program

A voluntary program that forms part of Community Governance and allows Algo holders to vote on the future of Algorand ecosystem growth efforts. By committing a minimum of 1 Algo for a three-month Governance Period, Governors gain the right to vote on Measures proposed by the Algorand Foundation. The Governance program replaces the former system where passive rewards were distributed to all Algo holders.

Governance Rewards

Rewards paid to Governors who participate in Governance through the Governance Portal. A Governor must fulfill their Governor responsibilities by keeping the committed Algo in their wallet for the duration of the Governance Period and by voting on every Measure in every voting session.

See also Governance DeFi Rewards, and xGov Rewards.

Governor

An Algo holder who participates in Governance.

mAlgo

mAlgo is one millionth of an Algo (1 Algo = 1,000,000 mAlgo). This unit is used in the xGov Portal due to the fact that smart contracts that manage voting and record results can only handle whole numbers.

Rewards deposit

Rewards accumulated through Governance that are deposited into the Term Pool.

Rewards distribution

Division and allocation of Governance rewards among eligible Governors within a week of the Governance Period’s end date. Rewards are calculated by proportionally dividing the total rewards among all eligible governors.

Rewards eligibility

The conditions that a Governor or xGov must meet to be eligible for Governance Rewards. Governors must keep the committed Algo in their wallet for the duration of the Governance Period and vote on every Measure in every voting session. xGovs must vote on every Proposal in every session throughout the Term Pool period to be eligible for any xGov Payout.

Stacked voting power

Voting power that a Governor can stack by opting into xGov at the start of every Governance Period. Rewards will always be deposited into the most recent Term Pool, but voting power will accumulate across pools. Governors can opt into a maximum of four Term Pools at one time.

Targeted DeFi Rewards

A growth-focused initiative aiming to increase DeFi participation, where rewards approved by Governors are distributed to DeFi protocols that meet specific criteria, including an agreement to distribute these rewards to protocol users during a pre-agreed time frame.

Term Pool (TP)

A pool of Governance Rewards deposits from Governors who opted into the xGov program. The Term Pool is locked for 12 months, after which the rewards are distributed to xGovs who fulfilled their xGov responsibilities of voting on all Proposals in all voting sessions throughout the 12-month Term Pool period.

xGovs who fail to vote, even once, forfeit their initial Governance Rewards deposit as well as any xGov Payout. These forfeited Algo deposits are distributed among xGovs in the Term Pool who remained eligible throughout the Term Pool period.

Term Pool closure

Closing of the Term Pool once all funds have been distributed. The Term Pool wallet address is discarded and removed from the Algorand Foundation's public list of addresses.

Term Pool distribution

Division and allocation of Algo locked in the Term Pool among eligible xGovs within one week of the Term Pool’s end date. Eligible xGovs receive their initial Governance Rewards in addition to their share of any Algo forfeited by xGovs that became ineligible during the Term Pool period.

Term Pool escrow address

A wallet address that holds the Governance Rewards in a Term Pool on behalf of the xGovs active in the Term. Each Term Pool has a different escrow address, which remains active for a time after the xGov Term ends.

Total committed stake

Total amount of Algo committed to Governance through the Governance Portal, including stakes committed through DeFi Governance.

Voting session

The second phase of a Governance Period where Governors are required to cast their vote on Governance Measures. Governors must vote on all Measures in each voting session to maintain reward eligibility. Each Governance Period has a minimum of one voting session. Voting sessions typically take place at the start of the final month of the Governance Period. See Governance homepage for key dates.

xGov

A participant of the xGov program committed to the development and betterment of the Algorand blockchain and ecosystem. An xGov is required to apply their acumen to funding decisions, including grant applications, that align with the mission of growing the Algorand ecosystem.

xGov Grant Proposals

Formal proposals submitted to xGovs from those seeking grants to develop DApps, community services, and educational tools. Proposals are submitted on the Algorand Foundation's xGov GitHub repository.

xGov opt in

To choose to participate in xGov during the commit phase for the Governance program. When a Governor opts in, they consent for their Governance Rewards from the active Governance Period to be deposited into the xGov Term Pool and locked for 12 months.

xGov Payout

Forfeited Governance Rewards of xGovs who failed to maintain xGov eligibility throughout the Term Pool period, which are distributed among xGovs who remained eligible in the same period.

xGov Portal

The newly developed web portal where xGovs can vote and view their xGov status. Find out more about the xGov Portal.

xGov Program

An evolution of Community Governance that aims to create an expert layer of governors who have a deep understanding of the blockchain’s inner workings and the realities of the Algorand community. Learn more about xGov.

xGov Voting Power (xGVP) or Voting Power

The Governance Rewards deposit balance accrued through Governance that an xGov uses to vote in xGov voting sessions. For example, if your Governance Rewards balance from Term 1 Pool was 100 Algo, your xGov Voting Power would be 100,000,000 mAlgo. You need to use all of your xGVP during each voting session. The xGVP renews at the start of each session. Learn more about xGVP.

xGov voting session

A phase during the Term Pool period where xGovs are required to cast their vote on xGov Proposals. Each Term Pool period has voting sessions, at least one per quarter. xGovs must use 100% of their xGVP on each Proposal to remain eligible to receive their Governance Rewards deposit.

Zero-Algo transaction

A transaction on the Algorand that does not involve the transfer of any Algo, but still incurs a minimal 0.001 Algo transaction fee.