What is Algorand's new governance model?

Everything you need to know about Algorand's new decentralized governance model!

In this Article:

What is Algorand's new governance model?

The Algorand ecosystem is moving 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.

This means that staking Algorand (and staking rewards) will be phased out in 2022 and replaced by governance rewards. Until then, participants in the governance program will also receive staking rewards.

What is the Community Governance Program?

Once the Algorand governance program begins, 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.

Once the three-month period is complete, governors are rewarded for their service by being allowed to claim governance rewards, which are deposited into their governing address.


Any address holding ALGO can sign-up as governor during the inception phase by sending a zero-ALGO transaction to a designated sign-up address, with the committed number of ALGO encoded in the Notes field. The Algorand Foundation will provide 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.


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 3 days.

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 Notes field. The weight of the vote will equal the number of ALGO that this governor's account committed to the governance period.


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 compliant governors. More details on how to claim governance rewards will be forthcoming.

Can I participate from my Exodus wallet?

Yes! The zero-ALGO transaction (with a note 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 here: https://algorand.foundation/governance

How do I sign up to be an Algorand governor?

A zero-ALGO transaction (with a note field) that is used to sign up and vote can be sent using your Exodus Algorand wallet. The signup period for the 1st Community Governance period opened on October 1st, 2021 and will close on October 15th, 2021.

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

Click Get Started.

Select Other Wallets.

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

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

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

Please note: MAX is your entire balance minus 1 ALGO. Committing your entire balance is discouraged.

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.

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.

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

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

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

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