What is Algorand governance?

Algorand governance allows ALGO holders to vote on network decisions and earn rewards. Commit ALGO for a three-month cycle, vote on proposals, and keep your tokens locked to stay eligible for rewards. Proposals include upgrades, funding, and policy changes, and voting happens through supported wallets. Rewards depend on participation and commitment. Moving tokens or skipping votes disqualifies you from rewards. The system is decentralized, transparent, and community-driven.

Why does Algorand need governance?

Algorand needs governance to keep the network decentralized and adaptable. It ensures decisions about upgrades, funding, and policies are made by the community, not a central authority. Governance lets ALGO holders shape the protocol’s future while earning rewards, aligning incentives across the ecosystem. This system helps Algorand evolve responsibly while staying true to its decentralized vision.

Governance can change key parameters like transaction fees, staking rewards, and project funding. For instance, it might lower fees to boost network activity or raise them to reduce congestion. It can adjust rewards to incentivize participation or allocate treasury funds for developer grants, community programs, or ecosystem expansion. These decisions shape how the network grows and operates.