Governance Vote on Aleph Zero has started–here’s all you need to know!

The governance vote on Aleph Zero has just started! Learn how you can vote and get all the required information to make the right choice.

The governance vote on Aleph Zero marks a pivotal moment for our community as we collectively decide on whether to update the future economic framework of AZERO, the native coin of Aleph Zero. Your vote will directly influence the evolution of AZERO’s economy, so it’s crucial to get involved and have your say.

How to participate in the governance vote

Participating in the vote is straightforward. Follow these simple steps to cast your vote:

1. Go to gov.alephzero.org.
2. Connect the wallet you use for staking AZERO. If you’re using a multisig scheme, head over to the documentation to learn how to participate.
3. Select the option that you support and sign your vote.

Your voting power is represented by the amount of GOV tokens you hold. These tokens have been distributed to AZERO stakers: the more significant your stake is and the longer you have been staking, the larger your GOV holdings are. For details, read the documentation of the GOV token.

The steps towards adjusting AZERO’s economy

The governance vote will be conducted in three distinct stages, each crucial for shaping the future of AZERO’s economy. Here’s how the process will unfold:

1. First Vote: Should We Introduce a Maximum Supply Cap?

• Duration: 5 days

• Decision: Vote on whether to introduce a maximum supply cap to AZERO. This vote is the foundation for the subsequent decisions, as it determines the potential enforcement of a supply limit.

2. Second Vote: Choosing the Logic Behind AZERO’s Inflation

• Duration: 5 days (begins after the first vote concludes)

• Decision: If the first vote approves the introduction of a maximum supply cap, we will then choose the specific inflation model that will govern AZERO. This vote will outline the broader economic principles guiding AZERO’s long-term value.

3. Third Vote: Setting Hyperparameters for the Winning Proposal

• Duration: 5 days (begins after the second vote concludes)

• Decision: The final vote will focus on selecting the hyperparameters for the chosen inflation model. This includes specific values and thresholds that will be applied to implement the winning proposal effectively.

Proposals: Which Vision Do You Support?

During the second vote, you will have the opportunity to select from several proposals, each offering a distinct vision for AZERO’s economic model:

AIP01 (Proposed by sc0t): Maximum Supply with Constant Annual Minting

This proposal suggests establishing a maximum supply cap (MAX) for AZERO alongside a fixed annual minting amount (MINT). If approved, the specific values for MAX and MINT will be decided by a community vote.

Note: This proposal does not address the allocation of minted tokens, which will be discussed in a separate vote by Q1 2025 if the proposal wins in the vote.

AIP02 (Proposed by the Aleph Zero Foundation): Maximum Supply with Exponential Decrease

AIP02 introduces a maximum supply cap (MAX) combined with an exponentially decreasing minting schedule, although instead of halving at specific points in time, the rate of decrease will be continuous, controlled by a parameter called LAMBDA, which will also be decided by the community.

The proposal assumes that even though there is a maximum supply, it would be reached in years, enabling enough time for further ecosystem development while ensuring the validator community retains sufficient rewards income.

AIP03 (Proposed by Freshman): Percentage-Based Linear Inflation

This proposal features a percentage-based inflation model that decreases linearly over time until reaching a minimum rate (MIN). The rate of decrease (SPEED) and the minimum inflation rate (MIN) will be set by the community if this proposal is chosen.

AIP04 (Proposed by Martin): Cost-Based Adaptive Inflation

AIP04 suggests an inflation model that adjusts according to projected validator costs, with a cap at MAX_INFLATION. The parameters governing validator costs (MONTHLY_VALIDATOR_COST and TARGET_VALIDATOR_ROI) will be voted on annually, ensuring the system remains responsive to the network’s needs.

AIP00: Maintain the Current System

If you prefer the existing model, AIP00 allows you to vote for maintaining the current minting structure, with the specific minting amount (MINTED_AMOUNT) to be determined by the community.

In case any questions arise, please do not hesitate to ask in the dedicated Governance channel in the Aleph Zero Discord.

Your vote matters!

This governance vote is a critical opportunity for the Aleph Zero community to influence the future of AZERO’s economy directly. Your participation is essential to ensure that the economic framework reflects our community’s collective vision.

For a deeper understanding of each proposal and the design of the vote, we encourage you to read the detailed article on our blog: Designing the Aleph Zero Governance Vote.

Join us in shaping the future of Aleph Zero—your vote matters!