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today we are going to be talking about the long 
overdue update that we've had comments on about   algorand and the new upcoming governance protocol 
we're going to review the proposal it's going   to be a little long-winded but if you want to 
know and educate yourself on what's to come for   alvaran and how we can benefit on uh holding and 
accumulating more in this crucial time then this   is going to be the video for you so stay tuned 
nerdy dude stuff what's going on everyone welcome   back to the channel welcome back to another 
video about bitcoin cryptocurrency algorand   all that good stuff i am opry's nerdy dude of 
nerdy dude stuff today we're just drinking a   white claw no beer of the day to talk about i know 
if you guys are excited for that very sorry but   cheers to you guys ah today we're going to be 
talking about algorand in the new governance   protocols might be a little bit of a boring video 
we're going to go through the entire five-page pdf   with a little bit of paraphrasing um just a quick 
update on the wallet of my al grant holdings we   currently have 5431 algorithm we had the optimizer 
do a transaction for us yesterday which cashed in   our rewards of 2.5 algorithm if you guys haven't 
used the optimizer really cool platform to check   out we're actually doing some updates to it soon 
we're going to be able to calculate what your   potential earnings are and i'm only talking about 
this now because this is going to be and remain a   very vital and crucial tool for algorand up until 
this new governance protocol comes through if this   proposal is approved again if you guys like the 
content qr code above my head for al goran or a   wallet address in the description for this video 
any and all tips are greatly appreciated leave   a comment i'll give you guys a shout out i know 
if you're sending alaran from coinbase you can't   really leave a comment but you can leave a comment 
on the video and i will definitely give that shout   out or read that comment to you so without further 
ado let's jump into the algorand decentralization   governance proposal and i will link this in 
the description for the video if you want to go   over it yourself we are going to read through 
everything um pretty much paraphrase as much   as we possibly can just to keep the video at a 
shorter level but some really exciting things and   some really exciting information i'm going to be 
sharing with you guys i'm trying to break it down   as simple as i possibly can for those of you that 
are new in algorand are new in cryptocurrency this   potentially can be the video for you so starting 
in the quarter of the fourth quarter of 2021   they are going to be looking at switching over the 
way we can earn and accumulate algorand rewards   as of right now the easiest way to earn algorithm 
rewards is the easiest way to earn rewards in   any cryptocurrency and it's just by holding 
there's no lock up period there's no staking time   frame minimum or anything like that you hold your 
algorithm you accumulate rewards immediately it's   called pure proof of stake and algorithm has a set 
amount of tokens that they are budgeting towards   that reward program which is going to see some 
major changes here shortly and we'll touch base   on that momentarily so without further ado from 
the algorand foundation decentralizing algorithm   governance the executive summary the agran 
foundation believes in a fully decentralized   algorithm ecosystem an ecosystem in which everyone 
can impact economic technical and other policy   decisions best enables the algorithm community to 
shape the shared future of the algorithm network   and project while also preventing any one group 
from exerting outsized influence so they really   want to make this a huge community effort 
and they want to make sure that it's a fair   and equal community effort for the whales and the 
little guys which is really really really really   cool we have listed to the community we have 
listened to the community and we are committed   to building a simple inclusive and transparent 
system for community governance this proposal   is based on the combination of silvio mccauley's 
original proposal and the governance discussions   on the algorithm governance forum the algorithm 
governance channel on discord and several other   community debates in the coming months several 
other community debates in the coming months the   foundation will provide further insight on 
al goran's journey towards decentralization   this will be accompanied by community 
engagement activities throughout the year   we believe the time has come for a radical step 
in the important mission we plan to yield to   the community the decision-making power over the 
remaining ecosystem resources currently entrusted   to the foundation these resources spelled out in 
a table below include the participation rewards   research and innovation funds and grant program 
for a total of 3.2 billion algos now you know that   the max supply of algos is 10 billion so they're 
going to be providing 3.2 billion algo to this   proposal going forward these algos are referred to 
as the algorand ecosystem resource pool the aerp   this ambitious new governance system will be 
deployed in two phases an inception period   for the system will begin in quarter 4 of 2021 
where some aspects will be implemented off chain   by early 2022 we expect a complete system to 
be ready where all aspects will be unchained   and controlled by a smart contract um blah 
blah blah blah we really don't need to go   into a lot of that the governance proposal the 
goal of this proposal is to entrust the future   of algorand ecosystems to participants who are 
committed to algorand network and its vision   to accomplish this we invite all algo holders to 
volunteer to become governors and vote on some   of the most important discussion or decisions 
regarding ecosystem development governors serve   for a quarter at a time committing their algos 
and receiving rewards to compensate them for their   time and their commitment to the role all voting 
will be weighted by the government stake of the   participant so in a nutshell what that means is 
if you have 10 algo or if you have 10 million algo   you then will be able to lock that alga rant up 
of your choosing if you have 10 million you only   want to lock up 5 million to earn these rewards or 
if you have you know 10 000 you only want to lock   up like 80 of that you have that opportunity and 
you can unlock at the same time and then you can   apply those towards you i mean once you lock them 
up you are designating yourself as a governor and   you are then able to vote on decisions that are 
being made we'll read here in a moment but another   thing about being a governor and doing these votes 
and if you can't participate as much as you can   because you have a crazy work schedule or so on 
and so forth you can designate your vote to go to   the al goran foundation vote decision so whatever 
the al goran foundation votes on that's what your   vote is going to be applied to and your vote will 
be weighted on how much algo you lock up for that   90 day period the foundation will set up votes 
but will not participate in the governor's program   other algo holders may choose to disclose the 
number of algos they intend to commit to the   program in advance publicly the governance program 
will move decision making on utilization of the   algorithm ecosystem resource pool the aerp to the 
hands of the community the following table so the   the aerp the following table details the resources 
that will be controlled by the governors and their   current allocation so the big thing here that 
we want to focus on as little as little guys and   like you know i'm a 5 000 bag holder i want to get 
to 10 000 before any of this happens but the big   thing that we want to look at is the participation 
rewards right now the participation rewards are   what we're getting in that pure proof of stake 
algo holding and those are going to be effective   a little bit longer up until 2022 so 
we've got just about two billion algo   supplied over here for the album rewards locked 
during the trial phase will be 1.5 billion   and then ongoing ecosystem activities will be 
half a billion algorithm innovation fund will be   400 million with 300 million during the locked 
lock during the trial phase and then ongoing   system activity 100 million the algo grant 
program where we can vote on grants for you   know smart contracts and daps and blah blah 
blah 400 million or where am i 200 million   150 million and 50 million research and social 
good program 200 million 100 million 100 million   cognitive incentives almost 500 million zero 
during the lockdown phase and then ongoing will   be 500 million for a grand total of 3.2 billion 
2 billion and 1.2 billion the aerp is made up of   five separate funds which we just showed there on 
the screen focused on supporting different pillars   of algorithm network and ecosystems development 
with the long-term goal of building a robust   decentralized broadly adopted and utilized public 
blockchain network these funds are scheduled to be   diffused into circulation between now and 2030 so 
just like what we're doing before this governance   protocol proposal where all the algo would be 
released out there by 2030 they're still on track   for that as well this is outlined in detail on the 
long-term algo dynamics which i'm not going to go   into today these five funds are also described in 
detail in the long-term dynamics but in summary   so essentially in a nutshell the participation 
rewards a fund designed to support the incentives   to the community it has supported the diffusion 
in the holding of the algo token during the   early growth phase of al goran network in 2022 
the participation rewards will be phased out   and replaced by the governor's rewards that are 
explained below so what that i'm not going to read   the other for here because really someone like you 
and someone like me the participation rewards is   what has really attracted me to algorand and what 
attracts you to algorand and it's that pure proof   of stake platform or system that they currently 
have in place where you just hold algorithm and   you earn algorithm you can compound that daily so 
what's gonna happen is when this transitions into   this new governance protocol in the fourth quarter 
of 2021 for that fourth quarter 2021 they're going   to be still doing the participation rewards and 
they're going to be doing the governance proposal   that we're talking about today so the fourth 
quarter of 2021 is going to be really crucial   to get the most free algo that you possibly can so 
it's really really strong and i'm not financially   advising or anything like that blah blah blah but 
what i'm going to be doing is i want to accumulate   as much algorithm as i possibly can before 
quarter four of 2021 so that way i can double dip   into this i can double dip with the participation 
rewards and then i can also get the governance   proposed like the governance proposal plan that 
they're doing as well and then at the start of   2022 the participation rewards will be gone and 
that's further in detail on this list as well   rule of the governors which is anyone that deems 
locking up any of their algo whether it's one   a hundred a thousand ten thousand a million 
you're all a governor if you lock up your   algo for 90 days and you can unlock it but 
you won't get any rewards if you do that   governors will be responsible more and more 
for major economic and policy decisions   this will be done via periodic voting whereby 
the foundation will then execute responsibly   for the benefits of the overall ecosystem based 
on the governor's decisions the foundation commits   to keeping the vote to keep the voting process 
as simple as possible easy interfaces will be   provided there will only be one voting session 
for every governance period and governors will   be allowed if they so choose to opt into accepting 
the foundation's position in every vote so that's   big there so if you just want to set it and forget 
it then you'll be able to set and freeze and lock   up your algorithm to be considered a governor 
and then you could designate that you want to   opt in and accept the foundation's positions in 
every vote so you can set and forget it there   the governor rewards and we're going to show what 
we're looking like down at the bottom here in a   moment as well governors will be rewarded for 
their efforts based on the participation stake   in governance the governance program will feature 
quarterly entry points allowing participants to   join the program and commit their algos for the 
entire period which is 90 days not too bad the   governors will participate in the quarterly vote 
to decide on the allocation of the aerp and will   receive rewards at the end of the period only if 
they gave a valid vote and maintain the committed   numbers of algos in their governance wallets this 
is a transformative step that is putting forward   the mechanics and incentives that guarantee a form 
of governance that is simultaneously decentralized   secure and efficient like our consensus 
protocol long story short there if you lock   up your algorithm for the full 90 days then 
you are going to be entitled to that reward   of being a governor if at any point you decide 
to sell your algorithm because all of a sudden it   jumps up to 10 or 20 or 100 a token then you will 
then forfeit your rewards but there's no penalty   to my understanding of jumping in as a governor 
and then jumping out because you need to cash   out like i get it it's cryptocurrency sometimes 
there's hard times sometimes you want to cash   out to take profit so on and so forth but if 
you un freeze and unlock your algorithm during   that 90 day period where you're a governor you 
forfeit your rewards at the end of that quarter   from participation to governance rewards and 
this is where i'm talking about the participation   rewards that we're going to be getting until the 
end of 2021.

July 14 2021 an important day in the   history that democracy as the anniversary of the 
french revolution is incidentally the last day   for which the current participation rewards have 
been planned with broad distribution of 21 almost   22 million algos in the last period the highest 
value of the year until then thereafter and until   the end of 2021 the foundation will continue 
to distribute participation rewards at the same   level so as of right now for that last quarter of 
2021 they don't exactly have a set amount of algo   that they budgeted for it but they will honor that 
pure proof of stake in that participation platform   that we have been in since we've gotten into algo 
since day one the governance program will start   in october and will distribute additional rewards 
to governors so that sentence right there is where   we're talking about the double dipping you're 
going to get the participation rewards and then   you're going to get the governance program rewards 
starting in october which will start the final   quarter of 2021.

Participants in the governance 
program will therefore see their total reward grow   significantly above the then fixed level the 
participation rewards in 2022 participation   rewards will be phased out to be completely 
replaced by the governance rewards get all your   algo now because on october 1st you're going to 
be double dipping like that's what i'm doing again   not financial advice nothing along those lines 
you're going to be double dipping and before any   like comments i don't know how coinbase will 
respond with their six percent apy or what   they're going to have available to you for being 
a governor i would just go ahead and download the   algo wallet or if you have stuff in exodus i don't 
know if that carries over as well i believe to my   understanding that based on your algo wallet or 
your exodus wallet i don't think coinbase in your   ledger wallet and stuff like that you will be able 
to link that wallet onto the governance page and   they can run the blockchain and see that you have 
those tokens dedicated to being a governor and you   can leave it from there reward frequency rewards 
will be distributed at the end of each quarter   to all governing wallets that participated in 
the votes and maintained their committed number   of algos governors that miss a vote or fail to 
maintain their committed number of algos will   lose their rewards for that quarter now here's 
where i kind of i'm starting to lose a little bit   of favorability for algorand is the one thing 
that's very attractive right now is the fact   that we can pretty much compound daily based on 
how much algo we hold and how often we transact   obviously with the algorithm optimizer i am 
transacting a free transaction every three days   in one hour instead of if i send myself like 
two or three algo from another platform to re   you know refresh my rewards but right now this 
looks like we will then stop from being able to   compound technically daily to only being able to 
compound quarterly maybe the rewards will outweigh   what you know that daily is but that's 
a little thing that kind of gets me   a little bit but algorand's price is going to 
go monster so i don't care leaving the program   early um i've already touched base on that 
i'm not gonna read the whole paragraph here   essentially if you decide to leave the program 
early you forfeit your rewards there's no penalty   uh it says there could be additional penalties 
right now but as of right now they don't really   have anything locked in i mean if it's a 
transaction fee it's a transaction fee but as   of right now if you decide not to keep your tokens 
locked up and be a governor for the full 90 days   you just don't get the rewards so the governance 
reward rates and this is where it looks really   really healthy and i really like the look of 
this at the moment the reward rate for the   governors in a given period will be determined by 
the willing participants based on the total tokens   being committed against the total reward 
pool for that period for example in 2022   approximately 300 million algo will be allocated 
for the governance rewards that's approximately   75 million rewards per quarter so for 2022 broken 
down into quarters it's 90 days you know 90 years   you know three months three months three months 
whatever um they are dedicating 75 million to each   governance period for a total of 300 million 
algo now obviously the more governors and the   more votes and the more that are in there will 
affect the rate of algorand so the really cool   benefit is that you can always imagine and 
think that there's only a set amount of algo   that people have that they're going to be at 
maximum of time because like they're allocating   3.2 billion algo so we would never see a number 
where there's going to be there's going to be   8 billion governor votes and so those numbers will 
go down even if there was 8 billion algo committed   in governing accounts and votes that 
would drop our apy from 7.7 to about   3.8 3.9 or something along there not even 
three point like 3.35 something like that   so that's pretty healthy so obviously the 
more votes that are in there the smaller   apy and you can look at the formula here so in 
the first quarter if there's 4 billion votes   75 million algo will then be divided by 4 billion 
which would give us a 1.875 percent for every algo   committed for the quarter so to my understanding 
if you know that's 1.5 1.87 or 1.875 percent   for every algo and you could be looking at an 
annualized return of seven point seven percent   if there's two billion votes you're looking at 
an annual return of fifteen point nine percent   if there's only one billion votes and people 
committed in the governing accounts for the   quarter thirty three point five percent apy so 
let's just look at the best scenario we possibly   could and imagine that right now we have 5400 
algorand and if we look at that at a rate of that's our return annually so if there's only 
one billion algo for the four voting periods   of 2022 we could be looking at 1.8 000 algorand 
returned annually as a reward that's fantastic i   don't know how much algorand is going to be 
dedicated to the governance reward starting   in october of 2021 but in 2022 that's still very 
promising those are still very big numbers because   as of right now if i had that that's only 300 like 
you know right now with the participation rewards   and compounding and staking daily blah blah blah 
my 5 400 whether seven percent apy would only get   us about 378 versus that 1800 which is outstanding 
so that that kind of gives me hope to overcome   my hesitation with the lack of ability to compound 
daily so we have that number there governors will   be called regularly to vote on a growing list of 
tasks including distributions of grants ecosystems   partnerships and related fund transfers node 
runner and governance incentives and more   new tasks to be voted on will be announced by the 
foundation uh well in advance well in advance of   each vote to participate in the government system 
a would-be governor needs to very simple register   an algorithm address that he or she intends to 
use for the governing for the current period of   three months and commit to holding a certain algal 
balance in that account through the period this   can be an existing address that is participant 
already has or a new address that you establish   specifically for this so right now i've got the 
algorithm wallet official wallet on my phone   all i need to do is register that wallet address 
just like i register the wallet address over here   on the optimizer and put that in here i can then 
register that wallet address for the governing   protocol and then i can get the rewards or i can 
then create another algo address move my algo that   i want to lock up there like if i didn't want to 
put my hundred percent because i'm putting 100   like i i'm all honesty and transparency i'm 
putting 100 like i want the biggest piece of   this pie i possibly can so i'm putting 100 percent 
of my algorand into being a governor into these   votes so i can accumulate even more participate 
in the vote the foundation calls in that period   and then the weight of the governor's vote will 
equal the algo stake that was committed at the   beginning of the period one algo equal one vote so 
as of right now i would have 5431 votes which is   solid governors who maintain their committed algal 
balance throughout the period and participate in   all the votes will be able to claim the governance 
rewards at the end of the period the foundation   working with our partners will strive to provide 
tools that make these tasks as easy as possible   at inception portuguese portions of the government 
system will be implemented via off chain mechanism   after that the entire system will be implemented 
on chain so very exciting times i'm very   interested to see i'm not going to go over the 
conclusion just because this is their conclusion   like i said my conclusion is at first i'm a 
little turned off that i can't compound daily   but looking at these reward rates here 
even this 15.9 percent even looking at that wrong button even looking at that that's 850 
aldo versus that 300 alga that i'm getting for   that seven percent even in the worst case scenario 
where it is four billion algo that are dedicated   to it and obviously by the time this comes out i'm 
gonna have way more than 5400 i'd like to have 10k   even at that 7.7 percent i'm obviously getting 
more than a seven percent apy so in conclusion   for me i think this is a good positive step in 
the direction i think there's enough rewards for   me to overcome my losing ability to daily compound 
i'd just be really really interested to see what   coinbase does with this as well because i know 
a lot of people hold on coinbase and it's very   attractive to hold there maybe holding on coinbase 
will not change as much because coinbase will then   allocate their algo holdings on there and your 
algo holdings but then you would forfeit any   rewards if you take obviously those algorand uh 
tokens off of coinbase uh into the governance   protocol as well and we could be looking at 
something where they're gonna leave algo at   the six percent apy but then getting numbers i'm 
putting on my screen here then getting numbers   like 33.5 apy so we're really if you leave it on 
coinbase and decide not to do a little bit of the   legwork and be a governor you're missing out on 
a potential 27 apy so it's really some things   to consider uh if you guys have any questions 
comments or concerns i will leave the link to this   in the description of the video i've gone through 
this document about three or four times in the   past a week in preparation to do this video uh and 
to really educate myself to be able to answer your   questions so leave a comment below reach out to me 
on twitter or discord like i said qr code above my   head or wallet address in the description of this 
video if you have any questions and you want to   send like your question as a comment in one of 
the tips by all means please do that i'll read   it on screen and answer you as well but at the 
end of the day i'm a huge supporter of algorand   i really love this platform i really love this 
token i have high hopes for this token it's going   to let us retire one day and i hope you guys are 
as ecstatic about that as well i'm not predicting   the price in this video although i would love to 
see a 65 i'll go and that's kind of the number   that i've locked my head on now um but that's just 
me so any comments questions concerns please feel   free to reach out tip blah blah blah blah but at 
the end of the day like comment subscribe turn   on the bell notifications all that good stuff 
i'm oprius and we'll see you guys next time

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