GP8 Measures DRAFT DeFi Rewards Allocation Q4

I would like to see FAIR consensus incentivization. Not just online escrow accounts from folks, but also other online accounts, and also public participation nodes.

Something like that will be in the protocol-level solution 🙂

Measure 5 - DeFi Rewards Q4 Allocation

The community voted strongly to allocate 25M of Algo rewards in GP7 to DeFi, with 7.5M Algo allocated directly to the projects through the Targeted DeFi Rewards program for Q3-Q4/2023. The total amount available for governance rewards distribution in GP9 is 4M Algo.

I agree. John Woods also mentioned it. I think we need rewards for node runners.

Algorand has some of the finest minds in the industry. Let’s dedicate some resources into designing a fair and robust node incentive programme.

I truly think rewards for running a Node should be in the next Governance vote. Imo it’s just as important if not MORE important than the other proposals we’ve voted on so far. Network security must be a TOP priority!

To make Algorand even more secure and decentralize than it currently is, we need more people to run nodes globally. And to speed up this process, having incentives would be a good idea in my opinion.

Agree with @thezec, it’s time for node running incentives if we want to distinguish ourselves as a Top10 blockchain. Even with small incentives, ~1-5M ALGO we can boost the validators to a number higher than 99% of other chains. Come on ppl.

There should be the max staking limit per node for rewards similar to Ethereum staking model. It makes the consensus more resilient otherwise even if the same entity runs multiple nodes. Basically, it will encourage whales to run multiple nodes as opposed to one to maximize their benefits and contributions.

Keep it simple and integrate #Algorand Governance with consensus participation. Make consensus participation a requirement for #Algorand Governors. Details would need to be flushed out, e.g., uptime criteria.

Part 1 of this post is a critique of M3 of the current proposals floating. Part 2 is a proposed alternative: NFT sales should be driven by the collectors who want to buy them, not through a centralized subsidy to create an artificial demand/hype.

I think there’s a serious miss-representation/understanding of where the Algorand DeFi space is at the moment. Reading your write-up it’s almost as if the Algorand DeFi space is dying.

Some made the following point I do not agree with: “Gov and holding Algo should not be rewarded but be a voluntary action.” Buying and Holding Algo (or any Crypto) is like buying shares with use-cases. Its investing into an ecosystem you can use with your investment.

I agree with every point made. Focus on more dapps with interesting (maybe even unique) use-cases enhanced by crypto should be the priority. Every chain now has DeFi. If Algorand's DeFi will give better returns, it will most likely not create lasting interest.

I am against these measures. Both suggestions are interesting, BUT they should be implemented on the application side, NOT core protocol. These DeFi applications should offer users the best services through open market rules.

I like your idea, that will bring more engagement to the blockchain. I know Silvio is against incentives for running nodes, but a small percentage could help with making Algorand more decentralized. Governance shouldn’t be the only way to stake on Algorand. People should have options for staking.