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The opportunity to commit Algo's to Algorand's second governance period closes tomorrow. Here's why -- and resources how -- you should commit any spare Algos before time runs out.
What is governance?
Algorand's governance model is a way for Algo holders to participate in the Algorand ecosystem's decision-making process. Algo holders commit a number of Algos in order to have voting rights on measures brought forward by the Algorand Foundation. The Algorand Foundation states it will engage the community on choosing proposals for votes once the Community Governance process successfully launches.
Read about the Algorand Governance model . Information on the first governance period's measures can be found
Why should I commit Algos?
Algorand Governors are handsomely compensated for their commitment. The first governance period's annualized reward rate was around 17-20 percent (Its surprisingly difficult to get an exact figure because some people include the annualized participation rewards rate).
I participated in the first governance period. I took me about 5-10 minutes to figure out how to commit my Algos and another 5-10 minutes to read about the proposal and vote. I committed about 1250 Algos in the first governance period, and I received 45 Algos for my 15ish minutes of hard work. The expected annualized rewards rate for the second governance period is between 9.4 percent and 19 percent. More information is available
Besides the obvious financial incentive to participate, I also found it surprisingly rewarding (pun intended). The Algorand Foundation provided plenty of information regarding their proposals, and there was (mostly) intelligent and robust debate among other Algorand Governors in the online forums I follow. If you buy into the governance concept, you can really find a great community.
What are the drawbacks?
The drawbacks are few but worth mentioning.
First, it requires financial commitment. Your committed Algos never leave your wallet. If you want to collect the governance period's rewards however, you cannot move your committed Algos before the governance period ends. In other words, only commit Algos you are reasonably sure you won't have to use for the next three months.
Second, you need a basic grasp of technology to participate successfully. I found it easy and straightforward to commit my Algos, but I've been active in with cryptocurrencies for several months now and I have a technological background. You need to be comfortable with setting up -- and troubleshooting -- things like a cryptocurrency wallet, signing a smart transaction, etc.
How do I become a governor?
Simple -- follow the steps provided by the Algorand Foundation.
The second governance period's commitment period ends Jan. 7, 2022 at 11:59:59 PM SGT. A countdown is available . There are about 15 hours remaining at time of press.
Final thoughts
I hope y'all find this post informative! I nearly forgot to commit my Algos for the second governance period, and I figured there might be folks out there who just need a reminder too. Looking forward to another community voting effort.
