How do I earn ALGO rewards with Algorand's Community Governance program?

Everything you need to know about Algorand's new decentralized Community Governance rewards program!


In this article:


What is Algorand's Community Governance model?

The Algorand ecosystem has moved to a decentralized governance model. This will allow holders of Algorand (ALGO) to participate in the ecosystem’s decision-making process, as well as earn governance rewards.

Algorand's passive staking was phased out in early 2022 and replaced by the Community Governance program.

Now you can commit your ALGO for 3 months, vote on community proposals, and earn rewards!


What is the Community Governance program?

The Algorand Community Governance program began in 2021. Any Algorand address can commit to serving as a governor. In order to do so, you have to both pledge some of your ALGO to the program for a three-month period as well as vote in the growth and development of the Algorand ecosystem.

When you commit ALGO to participate in the governance program, the ALGO you have committed is not locked in your wallet. However, if you send any part of the committed amount from your wallet during the governance period, your wallet will become underfunded. As an Algorand governor, If your wallet becomes underfunded or you do not participate in the voting sessions, you will not be eligible for any rewards for that particular period.

Once the three-month period is complete, governors who committed ALGO and stayed compliant with the governance program are rewarded for their service. The rewards are automatically sent to their Algorand address.

Governors

Any address holding ALGO can signup as governor during the registration phase by sending a zero-ALGO transaction to a designated sign-up address, with a note provided by the Algorand Foundation in the Memo field. The Algorand Foundation provides a web portal that enables anyone to generate a sign-up transaction in the right format.

This zero-ALGO sign-up transaction can be sent using your Exodus Algorand wallet.

Voting

The Algorand Foundation will announce the voting sessions for each governance period with a list of the topics that are to be voted on during the inception phase. Voting sessions will be open for approximately two weeks.

To be compliant, a governor is required to vote in all voting sessions opened during the governance period and can do so by sending a zero-ALGO payment transaction from their governor's account to a designated voting address with the details of the vote encoded in the Memo field. The weight of the vote will equal the number of ALGO that the governor's account committed to the governance period.

Rewards

Before each three-month governance period begins, the Algorand Foundation will authorize and fund a rewards pool -- an on-chain escrow account. Once the governance period is closed, the governor addresses that maintained their committed ALGO level throughout the period and participated in all the votes are eligible to collect rewards for this service. The rewards rate is based on the ratio between the rewards pool for the period and the number of ALGO committed by governors.


How can I participate from my Exodus wallet?

You can sign up to be a governor and vote from your Exodus wallet! Your rewards will be sent to your Algorand address once the governance period is over. 

The zero-ALGO transaction (with a note provided by the Algorand Foundation in the Memo field) that is used to sign up and vote can be sent using your Exodus Algorand wallet.

If you would like to learn more about the Community Governance program, you can visit the Algorand Foundation’s governance site or their FAQ.


When do the governance periods take place?

There will be four quarterly governance periods per calendar year which will typically run every three months. The governance program is fairly new and the stages for each period (signup, voting, etc.) are not fixed. As such, dates may change as the program evolves.

Generally, you can sign up to be a governor for the first two weeks of a governance period. Voting takes place after the registration period has ended.

To learn more about upcoming governance periods and when you will sign up as a governor, vote, and receive rewards, please see Algorand's news feed or follow their official Twitter account.

In addition, if you have questions that are not covered under the Algorand Foundation's FAQ, you can email them directly at [email protected].


Can I sign up for the Algorand Governance Program now?

Yes, registration for Governance Period 5 is currently open and closes at 4:00pm UTC on October 14, 2022. If you do not sign up before this date, you will need to wait to sign up for the next governance period, which begins on January 1, 2023.


How do I sign up to be an Algorand governor?

A zero-ALGO transaction (with a note provided by the Algorand Foundation in the Memo field) that is used to sign up and vote can be sent using your Exodus Algorand wallet.

Desktop

The signup period has historically been open for only the first two weeks of any governance period. If this window is missed, new opportunities to participate will occur every three months.

1
Go to Algorand's governance site.
2
Scroll down to Become a Governor and click on Sign Up as a Governor.

3
Click Get Started.

4
Select Other Wallets.

5
a) Copy and paste your Exodus ALGO address in the address field, and b) click Connect Wallet.

6
The dashboard will read You're very close to becoming a governor. Click Commit Algos.

7

a) Choose the amount of ALGO you want to commit, and b) click Commit Algos.

  • MAX is your entire balance minus 1 ALGO. This 1 ALGO is a buffer that can be used to cover network fees in case you have to send a transaction during the governance period.
  • When you commit ALGO as an Algorand governor, the funds are not locked up. However, if you send any part of the committed amount from your wallet during the governance period, your wallet will become underfunded. If your wallet is underfunded, you will not be eligible to receive a reward for that particular period.

8
Next, you will need to prepare a zero-ALGO transaction. You will need both the a) the address and b) note from the Algo dashboard. 

9

In your Exodus ALGO wallet, a) paste the address from the Algo dashboard in the address field and b) paste the note from the Algo dashboard in the Memo field. Leave the amount as 0.00, and c) click Send.

The ALGO note copied from Step 8 above should be pasted into your Exodus wallet's Memo field. You can leave the Personal Note field blank, or enter a note for your records.

10
Confirm the address is correct and that you are sending zero ALGO, then click Send.

11
In the Algo dashboard, click I've sent the transaction. It can take a few minutes to process.

12
Once processed, you will see your status as Eligible. And that is it! You are now an Algo Governor!

You must vote in all voting sessions to remain eligible for governance rewards.

Mobile

The signup period has historically been open for only the first two weeks of any governance period. If this window is missed, new opportunities to participate will occur every three months.

1
Go to Algorand's governance site.
2
Scroll down to Become a Governor and tap on Sign Up as a Governor.

3
Tap Get Started.

4
Tap Other Wallets.

5
a) Copy and paste your Exodus ALGO address in the address field, and b) tap Connect Wallet.

6
Next, tap Commit Algos.

7

a) Choose the amount of ALGO you want to commit, and b) tap Commit Algos.

  • MAX is your entire balance minus 1 ALGO. This 1 ALGO is a buffer that can be used to cover network fees in case you have to send a transaction during the governance period.
  • When you commit ALGO as an Algorand governor, the funds are not locked up. However, if you send any part of the committed amount from your wallet during the governance period your wallet will become underfunded. If your wallet is underfunded you will not be eligible to receive a reward for that particular period.

8
Next, you will need to prepare a zero-ALGO transaction. Copy the a) address and b) note from the Algo dashboard. You will need both to send the zero-ALGO transaction.

9
In your Exodus ALGO wallet, a) leave the amount as zero, b) paste the address, and c) tap Advanced / Memo.

10
In the Advanced Options, a) paste the note from Step 8 above into your Exodus wallet's Memo field. b) You can leave the Personal Note field blank, or enter a note for your records. Then tap Confirm.

11
Tap Send.

12
Confirm the address and memo are correct and that you are sending zero ALGO, then slide the arrow to send your transaction.

13
Once successful, tap Continue.

14
In the Algorand dashboard, tap I've sent the transaction. It can take a few minutes to process.

15
Once processed, you will see your status as Eligible. And that is it! You are now an Algo Governor!

You must vote in all voting sessions to remain eligible for governance rewards.


How do I vote in an Algorand voting session?

To vote, you send a zero-ALGO transaction (with a note field) using your Exodus Algorand wallet.

Desktop

1
Go to Algorand's governance site.
2
Scroll down to Become a Governor and click on Sign Up as a Governor.

3
Your wallet address should already be connected. If not, click Connect Wallet. If already connected, skip to Step 6.

4
Select Other Wallets.

5
a) Copy and paste the Exodus ALGO address you registered as a governor in the address field, and b) click Connect Wallet.

6
a) Confirm your wallet is connected. Then, b) check your status. Here you can see whether or not your wallet is eligible and if you have voting sessions to complete.

7
Click on the Voting Session to learn about the voting measures.

8
Either a) vote with the Foundation or b) cast your own vote.

9
Once you have made your vote, click Submit your votes.

10
Next, you will need to prepare a zero-ALGO transaction. Copy a) the address and b) note from the Algo dashboard. You will need both to send the zero-ALGO transaction.

11
In your Exodus ALGO wallet, paste a) the address and b) note from the Algo dashboard. Leave the amount as 0.00, and c) click Send.

12
Confirm the address is correct and that you are sending zero ALGO, then click Send.

13
In the Algo dashboard, click I've sent the transaction. It can take a few minutes to process.

14
Once processed, you will see your status as Eligible and that you have voted in all voting sessions. And that is it! You have now voted as an Algo Governor!

Rewards will be collected once the governance period ends.

Mobile

1
Go to Algorand's governance site.
2
Scroll down to Become a Governor and tap on Sign Up as a Governor.

3
Your wallet address should already be connected. If not, tap Connect Wallet. If already connected, skip to Step 6.

4
Select Other Wallets.

5
a) Copy and paste the Exodus ALGO address you registered as a governor in the address field, and b) tap Connect Wallet.

6
Tap on  Voting Sessions to learn about the voting measures.

7
Select either a) Vote all topics with Foundation...

or b) cast your own vote.

8
Once you have made your vote, tap Submit your votes.

9
Next, you will need to prepare a zero-ALGO transaction. Copy a) the address and b) note from the Algo dashboard. You will need both to send the zero-ALGO transaction.

10
In your Exodus ALGO wallet, a) leave the amount as zero, b) paste the address, and c) tap Advanced / Memo.

11
In the Advanced Options, a) paste the note from Step 9 into your Exodus wallet's Memo field. b) You can leave the Personal Note field blank, or enter a note for your records. Then tap Confirm.

12
Confirm the address and memo are correct and that you are sending zero ALGO, then slide the arrow to send your transaction.

13
Once successful, tap Continue.

14
In the Algo dashboard, tap I've sent the transaction. It can take a few minutes to process

15
Once the transaction has confirmed on the blockchain, you should see the message You've already voted. And that's it! You have now voted as an Algo Governor!

Rewards will be distributed once the governance period ends.

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