Algorand's second governance period runs through March 31 — here's a breakdown of eligible governors, committed Algos, and period rewards as of March 3.
Changes since last week
Algorand's Period 2 governance numbers changed dramatically between Feb. 28 and March 3. More than 24,000 governors dropped their eligibility, resulting in a 171 million decrease in the committed Algo count. It appears most of these governors lost eligibility because they did not vote before Period 2's voting period closed Feb. 28
The abrupt departure of so many governors and their committed Algo bumped up Period 2's reward rate to 2.5 percent.
Last week's governance eligibility update is available
Period-2 vs Period-1
There are currently 37,781 governors eligible for Period 2's rewards. Period 2's rewards will likely be distributed just after March 31 when the period closes. Period 2's xGov proposal voting period closed April 28 with a majority A vote.
Period 2's eligible committed Algos at this time remain larger than Period 1's eligible Algos at the period's close — 65 percent larger, to be exact. The number of Period 2's eligible governors however is now lower than Period 1's by about 25 percent.
Period 2's current eligible committed Algos provide a 2.5 percent reward rate. The reward rate will likely grow by a modest amount before the period ends March 31. Period 2's reward rate will likely not change by much however unless a large whale drops out.
Period-2's whales
Period 2's largest current eligible whale controls 4.9 percent of the total committed Algo. Near 50 percent of Period-2's total committed Algo is currently controlled by the 25 largest governor accounts. And the top 100 governor accounts still eligible control 82 percent of the committed Algos.
Interestingly enough, Period 2's top 100 whales are slightly more decentralized than Period 1's.
Final thoughts
I'm surprised so many governors forgot to cast their vote. Close to 40 percent of Period 2's governors dropped in a single day once the voting period closed. The slight majority that did vote however received a pleasant surprise — they will claim a larger share of Period 2's 70.5 million Algo rewards pool, if they stay eligible.
I also think Period 2's reward rate is unlikely to move appreciably higher than its current 2.5 percent. Its not likely that we'll see another dramatic loss of eligible governors. But I'd love to be proven incorrect.
Thanks for reading! Previous weekly updates:
- Algorand governance period 2 eligibility update — Feb. 23
- Algorand governance period 2 eligibility update — Feb. 16
- Algorand governance period 2 eligibility update — Feb. 9
- Algorand governance period 2 eligibility update — Feb. 2
Thumbnail photo by Ryan WallaceUnsplash.
