June 30th, 2021
TO ALL ALGO HOLDERS - Referendum on Transition to Community Governance
Two years after the launch of the Algorand platform, the Foundation believes that the time has come to decentralize the management of the community funds that the Foundation has stewarded until now. Today marks the beginning of the Governance program referendum period, where the Algorand network will decide on acceptance of the Algorand Foundations proposal for Decentralized Community Governance.
The proposal is available in eleven languages at https://algorand.foundation/the-algo/algo-governance.
This proposes that the Algorand community will take responsibility for the remaining 3.2Bn Algo AERP ( Algorand Ecosystem Resource Pool) and how it will be distributed up to 2030. The Foundation will not stop committing to the growth of the network and the strength of the Algo market and ecosystem. However, if the proposal is approved, the commitment of the Foundation will continue under your control, as an Algo holder ready to commit your stake to earn Governance votes. The AERP funds will be the critical lever in fueling key areas of ecosystem development, education, investment and adoption of the Algo and the Algorand network. This is a significant step in the path to decentralization of the Algorand network and even greater transparency and community involvement, improving decision making.
As outlined here, the referendum will involve the network consensus participants (consensus node runners), existing or set up during the referendum period by any Algo holder willing to commit his stake for node running. Choosing to upgrade to the latest node version ( launched today ) will count as YES in favour of the proposal. Choosing not to upgrade, will count as NO, and to decline the proposal. The referendum will be passed if 90% (or greater) of the network chooses to upgrade. The window will remain open for this upgrade voting mechanism until July 14th or if the 90% of the network target has been achieved.
If the referendum is passed, the future voting process will be open to every algo holder eager to commit to the governance rules, not only node runners. The future will depend on you as well.