Merge pull request #248 from algorandfoundation/ARC-34-update-2

ARC-34 update the voting mechanism

ARCs/arc-0034.md

@@ -24,27 +24,11 @@ A proposal within the xGov program aims to provide funding for:
 
 ### Duty of a proposer
 Having the ability to propose measures for a vote is a significant power, which requires:
-- A thorough understanding of the needs of the community
+- A thorough understanding of the needs of the community.
 - Alignment of personal interests with the advancement of the Algorand ecosystem.
 > Issues requiring resolution may have been discussed on various online platforms such as forums, discord, and social media networks.
 > Proposals requesting a large amount of funds **SHOULD** split into a milestone-based plan. See [Submit a proposal](./arc-0034.md#submit-a-proposal)
 
-### Voting System
-The voting system for the xGov program will be the following:
-- Only xGovs are eligible to participate in the voting process
-- Utilization of the Algo committed by xGov as a form of voting currency, with a 1:1 ratio of Algos to votes
-- Proposals that do not reach the threshold of votes required will be removed from consideration.
-
-### Threshold 
-In order for a proposal to be approved, it is necessary for the number of votes in favor of the proposal to be proportionate to the amount of funds requested. This ensures that the allocation of funds is in line with the community's consensus and in accordance with democratic principles.
-
-The formula to calculate the voting power needed to pass a proposal is as follows:
-`Voting Power Needed = (Amount Requested) / (Amount Available) * (Total Number Of Algo In Term Pools)`
-
-> eg. 2 000 000 Algo are available to be given away as grants, 200 000 000 millions Algo rewards are committed to the xGov Process (200 000 000 votes available in the Term Pools):
-> - Proposal A request 100 000 Algos (5 % of the Amount available)
-> - Proposal A needs 5 % of the votes (10 000 000 Votes) to go through
-
 ### Life of a proposal
 The proposal process will follow steps below:
 - Anyone can submit a proposal at any time.
@@ -61,14 +45,63 @@ In order to submit a proposals, a proposer needs to create a pull request on the
 Proposals **MUST**:
 - Follow the [template form provided](../assets/arc-0034/TemplateForm.md).
 - Follow the rules of the xGov Proposals Repository.
+- The minimum requested Amount is 1000 Algo
 - Have the status `Final` before the end of the temperature check.
 - Milestone-based grants must submit a proposal for one milestone at a time.
 - Milestones need to follow the governance periods cycle. With the current 3-months cycle, a milestone could be 3-months, 6 months, 9 months etc.
 - The initial proposal must include display all milestones with clear deliverables and the amount requested must match the 1st milestone.
 - Once a milestone is achieved, the team must submit a proposal for the next milestone, including ways for xGovs to verify that the milestone is completed.
 
+- ### Disclaimer jurisdictions and exclusions
+To be eligible to apply for a grant, projects must abide by the <a href="https://www.algorand.foundation/disclaimers">Disclaimers</a> (in particular the “Excluded Jurisdictions” section) and be willing to enter into <a href="https://drive.google.com/file/d/1bf8sIu6gohU6FvKtEiXLZ5oMd4a1ySdu/view?usp=sharing">a binding contract with the Algorand Foundation</a>. Additionally, applications promoting gambling, adult content, drug use, and violence of any kind are not permitted. 
+
+> We are currently accepting grant applications from US-based individual/business. If grant is approved Algos will be converted to USDCa upon payment. This exception will be reviewed periodically.
+
+### Voting Power
+
+When an account participates in its first session, the voting power assigned to it will be equivalent to the total governance rewards it would have received. For all following sessions, the account's voting power will adjust based on the rewards lost by members in their pool who did not meet their obligations.
+
+The voting power for an upcoming session is computed as:
+`new_account_voting_power = (initial_pool_voting_power * initial_account_voting_power) / pool_voting_power_used`
+
+Where:
+- `new_account_voting_power`: Voting power allocated to an account for the next session.
+- `initial_account_voting_power`: The voting power originally assigned to an account, based on the governance rewards.
+- `initial_pool_voting_power`: The total voting power of the pool during its initial phase. This is the sum of governance rewards for all pool participants.
+- `pool_voting_power_used`: The voting power from the pool that was actually used in the last session.
+
+
+
+### Proposal Approval Threshold
+In order for a proposal to be approved, it is necessary for the number of votes in favor of the proposal to be proportionate to the amount of funds requested. This ensures that the allocation of funds is in line with the community's consensus and in accordance with democratic principles.
+
+The formula to calculate the voting power needed to pass a proposal is as follows:
+`voting_power_needed = (amount_requested) / (amount_available) * (current_session_voting_power_used)`
+
+Where:
+- `voting_power_needed`: Voting power required for a proposal to be accepted.
+- `amount_requested`: The requested amount a proposal is seeking.
+- `amount_available`: The entire grant funds available for the current session.
+- `current_session_voting_power_used`: The voting power use in the current session.
+
+
+> eg. 2 000 000 Algo are available to be given away as grants, 300 000 000 millions Algo are committed to the xGov Process, 200 000 000 Algo are used during the vote:
+>  - Proposal A request 100 000 Algos (5 % of the Amount available)
+>  - Proposal A needs 5 % of the votes (10 000 000 Votes) to go through
+
+### Reserve List
+
+Proposals that received 60% to 100% of the required votes are placed on the reserve list. Funds are allocated from the top down, provided the requested amount is less than the remaining balance available for distribution.
+
+> eg. 2 000 000 Algo are available to be given away as grants, 300 000 000 millions Algo are committed to the xGov Process, 200 000 000 Algo are used during the vote:
+>  - Proposal A request 100 000 Algos (5 % of the Amount available)
+>  - Proposal A needs 4 % of the votes (8 000 000 Votes) to go through
+>  - Proposal A got 80% of the votes required and enter the reserve list, there is now 2 possibilities:
+>  - - If over 100,000 Algo remains available for grants, funds will be distributed.
+>  - - If less than 100,000 Algo is left for grants, no funds will be distributed.
+
 ### Voting on proposal
-At the start of the voting period xGovs [ARC-33](arc-0033.md) will vote on proposals using the voting tool hosted at <a href="">[URL TBD]</a>.
+At the start of the voting period xGovs [ARC-33](arc-0033.md) will vote on proposals using the voting tool hosted at <a href="https://xgov.algorand.foundation/">https://xgov.algorand.foundation/</a>.
 
 Vote will refer to the PR number and a cid hash of the proposal itself. 
 
@@ -85,13 +118,11 @@ The CID MUST:
 The allocation of grants will consider the funding request amounts and the available amount of ALGO to be distributed.
 
 ### Grants contract & payment
-- Once grants are approved, the Algorand Foundation team will handle the applicable contract and payment.   
+- Once grants are approved, the Algorand Foundation team will handle the applicable contract and payment.
+- Before subtmitting the grant proposal, review the contract template and ensure you're comfortable with its terms.  <a href="https://drive.google.com/file/d/1bf8sIu6gohU6FvKtEiXLZ5oMd4a1ySdu/view?usp=sharing">Contract Template</a> 
 
 > For milestone-based grants, please also refer to the [Submit a proposal section](./arc-0034.md#submit-a-proposal)
 
-### Disclaimer jurisdictions and exclusions
-To be eligible to apply for a grant, projects must abide by the <a href="https://www.algorand.foundation/disclaimers">Disclaimers</a> (in particular the “Excluded Jurisdictions” section) and be willing to enter into a binding contract with the Algorand Foundation (template link coming soon) . Additionally, applications promoting gambling, adult content, drug use, and violence of any kind are not permitted. 
-
 ## Rationale
 The current status of the proposal process includes the following elements:
 

assets/arc-0034/TemplateForm.md

@@ -7,7 +7,7 @@ company_name: <Name of the company>
 category: <dApps, Tools, Community, Other>
 focus_area: <Banking,DEX,Defi,Deployment,Education,Gaming,IDE,Identity,Libraries,Metaverse,Monitoring,Node,NFT,Oracle,Social,Storage,Teal,User Onboarding,Wallet, Other>
 open_source: <Yes, No>
-amount_requested: <Amount (integer) requested in ALGO, it should be at least 1000>
+amount_requested: <Amount (integer) requested in ALGO, it should be at least 10000>
 status: <Draft, Final, Approved>
 ---