Algorand xGov Beta

This document describes the architecture of the xGov process (Beta).

Specifically, the architecture aims to solve the following main requirement:

The xGov process is a trustless voting system to manage grant proposals funding and polls for the Algorand ecosystem.

The design takes a step towards this end goal, which is a fully decentralized application relying uniquely on a front-end and the Algorand Virtual Machine (AVM).

The current design minimizes the trust model and the off-chain footprint to a few operations, carried out by a back-end controlled by the Algorand Foundation, which could be pushed on the AVM in future iterations.

It is worth noting that the residual trusted off-chain operations are fully accountable on the Algorand public Ledger.

Motivation

The old xGov process (Alpha) has shown some weaknesses concerning the incentive alignment, the gamification risks of the voting system, and low-quality proposals.

Moreover, the old grant proposal submission and funding mechanism were based on a per-quarter schedule, making the whole process slow and inflexible.

Therefore, a more robust process with a continuous stream of grant proposals, votes, and funding is desirable.

Finally, given the shift of the Algorand protocol towards consensus incentivization, the xGov (Beta) voting power will be based on active consensus participation instead of ALGO locking periods (Alpha).

Architecture Overview

The xGov Architecture consists of the following components:

COMPONENTIMPLEMENTATION
xGov PortalFront-End
xGov RegistryAlgorand Application (Factory)
xGov TreasuryAlgorand Application Account
xGov ManagerAlgorand Address
xGov Committee ManagerAlgorand Address
xGov DaemonAlgorand Address, Back-End + DB
xGov CouncilAlgorand Address
xGov PayorAlgorand Address
xGov SubscriberAlgorand Address
xGovAlgorand Address + Box
Managed SubscriberAlgorand Address
xGov Subscription RequestBox
xGov CommitteeJSON (ARC-86)
ProposerAlgorand Address + Box
KYC ProviderAlgorand Address
ProposalAlgorand Application (Child)
Proposal MetadataBox
Proposal EscrowAlgorand Application Account
Proposal VotersBoxes

xGov Architecture

The on-chain components are used for:

  1. Onboarding xGov;
  2. Whitelisting Proposers (KYC required);
  3. Creating and submitting Proposals;
  4. Binding xGov Committees to Proposals;
  5. Voting on Proposals;
  6. Managing the xGov Treasury and funding approved Proposals.

The off-chain components are used for:

  1. Selecting xGov Committees periodically and verifiably, according to ARC-86;
  2. Intermediate Proposers’ KYC;
  3. Intermediate onboarding of xGovs that cannot execute a self-onboarding.

Reading Guidelines

The keywords “MUST”, “MUST NOT”, “REQUIRED”, “SHALL”, “SHALL NOT”, “SHOULD”, “SHOULD NOT”, “RECOMMENDED”, “MAY”, and “OPTIONAL” in this document, are to be interpreted as described in RFC 2119.

The data types (like uint64, byte[], etc.) in this document are to be interpreted as specified in ARC-4.

📝 NOTE

Notes like this are non-normative

📎 EXAMPLE

Sections like this are examples aiming to clarify the specifications.

Sections like this are either pseudo-code or data structures.

Math Symbols

For a correct rendering of mathematical symbols and formulas, it is recommended to right-click on the symbol below, and select Math Settings -> Math Renderer -> Common HTML from the drop-down menu.

$$ \mathcal{C} $$

Once MathJax rendering is correctly set, you should see a calligraphic “C”.

xGov Registry

The xGov Registry is the orchestrator of the xGov process. It is used to:

The xGov Registry is implemented as an Application, deployed by the original xGov Manager.

Roles

xGov Manager

The xGov Manager is an Algorand Address controlled by the Algorand Foundation.

It represents the root of trust for the xGov process.

RBAC

The xGov Manager MAY rotate itself.

The xGov Manager MUST provide and MAY update the xGov Committee Manager Address.

The xGov Manager MUST provide and MAY update the xGov Daemon Address.

The xGov Manager MUST provide and MAY update the xGov Council Address.

The xGov Manager MUST provide and MAY update the xGov Payor.

The xGov Manager MUST provide and MAY update the xGov Subscriber Address.

The xGov Manager MUST provide and MAY update the KYC Provider Address.

Configuration and Updates

The xGov Manager MAY pause the xGov Registry.

The xGov Manager MAY pause the creation of new Proposals.

The xGov Manager MAY update the xGov Registry anytime.

The xGov Manager MAY reconfigure the parameters of the xGov Registry.

The xGov Manager MUST NOT reconfigure the xGov Registry in case of pending Proposals.

Treasury Management

The xGov Manager MAY execute withdrawals of outstanding funds from the xGov Treasury.

xGov Committee Manager

The xGov Committee Manager is an Algorand Address controlled by the Algorand Foundation.

The xGov Committee Manager SHALL declare the xGov Committee currently in charge on the xGov Registry.

xGov Daemon

The xGov Daemon is an Algorand Address controlled by the Algorand Foundation (back-end).

The xGov Daemon SHALL assign the xGov Committee currently in charge (and their voting power) to open Proposals.

The xGov Daemon SHALL delete the xGov Committee assigned to a Proposal once the voting is over (see Proposal Finalization section).

xGov Council

The xGov Council is an Algorand Address representing a group of elected Councilors.

The xGov Council MUST have an odd number of Councilors.

The xGov Council MUST review approved Proposals (see Proposal review section).

The xGov Council MAY apply a veto against approved Proposals according to the terms and conditions of the xGov process.

The xGov Council majority vote is REQUIRED to apply a veto against approved proposals.

xGov Payor

The xGov Payor is an Algorand Address controlled by the Algorand Foundation.

The xGov Payor MAY disburse the requested funds for approved and reviewed Proposals if there are enough funds in the xGov Treasury.

xGov Subscriber

The xGov Subscriber is an Algorand Address controlled by the Algorand Foundation.

The xGov Subscriber MAY onboard xGovs who cannot execute a self-subscription (e.g., due to contract immutability or other restrictions).

Treasury

The xGov Treasury is an Algorand Address controlled by the xGov Registry.

Treasury Inflows

  • Governance funds from the Algorand Foundation;

  • xGov Fee deposits from xGovs on subscription/request;

  • Proposer Fees from Proposers on subscription;

  • Open Proposal Fees from Proposers on proposal submission;

  • Proposal Commitment from Proposal Escrows if a veto is applied to the Proposal.

Treasury Outflows

  • Partial Open Proposal Fees to Proposal Escrow on Proposal submission;

  • Proposal Funds to the Proposer on proposal payment;

  • Algorand Foundation withdrawals of outstanding funds.

Treasury MBRs

  • Treasury Application Account;

  • xGov Boxes;

  • Proposer Boxes;

  • Created Proposal Applications.

📝 NOTE

Partial Open Proposal Fees are equal to the Open Proposal Fee discounted by the Proposal Application MBR.

xGovs

An xGov MUST have an Algorand Address.

An xGov MUST provide a Voting Address.

It is RECOMMENDED to provide a Voting Address different from the xGov Address, to facilitate voting operation on behalf of the xGov Address (supposed to be secure and less accessible).

The xGov Address and the current Voting Address MAY update the Voting Address.

📝 NOTE

xGov Address can be associated with any Account type. This ensures the compatibility and inclusivity of xGov participation (direct or delegated).

Subscription

The xGov Registry provides two xGov subscription procedures:

  • Self-Subscription: the xGov Address MUST call the xGov Registry.

  • Managed-Subscription: the ownership of the xGov App Address is verified off-chain, by the Algorand Foundation, according to a pre-defined trust model. The Managed-Onboarding is executed in two steps:

    1. Users issue a Subscription Request, declaring the xGov App Address, the Application Owner Address, and a Relation Type (enumerative that identifies a pre-defined trust model).

    2. The Algorand Foundation verifies the declared and accountable xGov/Owner Addresses relationship off-chain (based on the Relation Type) and eventually approves it.

📝 NOTE

For further details about existing and new Relation Types, refer to the Relation Types section.

An xGov Fee MUST be paid to the xGov Treasury for the subscription or subscription request.

📝 NOTE

The xGov Manager MAY update the xGov Fee.

The xGov Fee has the following scope:

  1. Minimal deterrent for Sybil attacks;

  2. Covering the xGov Box MBR (see below).

xGov Box

An xGov is associated with a Box on the xGov Registry, called xGov Box.

xGov Box ID is equal to: [X||<xgov address>], where X is a domain separation prefix and || denotes concatenation.

An xGov Box has the following ABI schema:

{
    "voting_addr": "address",
    "voted_proposals": "uint64",
    "last_vote_timestamp": "uint64",
    "subscription_round": "uint64"
}

The xGov Fee MUST NOT be lower than the xGov Box MBR.

xGov Self-Subscription

The xGov Fee MUST be paid to the xGov Treasury upon xGov Box creation.

The xGov Fee MAY NOT be paid by the xGov Address.

The Voting Address declared on subscription MUST BE assigned to the xGov Box.

xGov Managed-Subscription

An xGov Subscription Request is associated with a Box on the xGov Registry, called xGov Subscription Request Box.

The xGov Fee MUST be paid to the xGov Treasury upon xGov Subscription Request Box creation.

The xGov Fee MAY NOT be paid by the xGov Address.

xGov Subscription Request Box ID is equal to: [R||<counter>], where R is a domain separation prefix, <counter> is a global counter for pending requests, and || denotes concatenation.

An xGov Subscription Request Box has the following ABI schema:

{
    "xgov_addr": "address",
    "owner_addr": "address",
    "relation_type": "uint64"
}

The xGov Subscription Request MUST be performed by the Owner Address.

The xGov Fee MUST NOT be lower than the xGov Subscribe Request Box MBR.

If the Algorand Foundation approves the subscription request:

  1. The xGov Subscription Request Box MUST be destroyed;

  2. An xGov Box MUST be created using the xGov Address declared on the subscription request.

  3. The Owner Address declared on the subscription request MUST be assigned to the Voting Address in the created xGov Box.

Relation Types

A Relation Type identifies the trust model and the off-chain verification process of the xGov App Address ownership for a Managed-Subscription.

New Relation Type Request

A request for a new Relation Type SHALL be submitted by the Application Creator opening a new Relation Type Request issue.

A Relation Type MUST be approved by the Algorand Foundation.

Available Relation Type

The following enumerative relation_type (uint64) are currently available:

RELATION TYPEENUM
Réti Pooling1
Compx LST2

Relation Type 1: Réti Pooling

Réti Validators are created by an immutable factory contract.

A Validator is uniquely owned by an immutable Owner Address.

Each Validator may control several Staking Pools, which participate in Algorand consensus.

To request a Managed Subscription for a Réti Staking Pool:

  • The relation_type MUST be set to 1;
  • The owner_addr MUST be set to the Validator Owner Address;
  • The xgov_addr MUST be set to the Staking Pool Address.

Relation Type 2: Compx LST

TBD

xGov Committee

xGov Committees are responsible for voting on Proposals.

Selection

The xGov Committee selection and the assignment of their voting power is performed by the Algorand Foundation, based on the selection criteria defined in ARC-0086.

An xGov Committee is identified by the Committee ID, as defined in ARC-0086.

Declaration

The xGov Committee Manager SHALL declare on the xGov Registry:

  • The current Committee ID;

  • The current xGov Committee Total Members;

  • The current xGov Committee Total Votes.

Assignment to Proposal

The xGov Daemon SHALL assign the current xGov Committee to Proposals upon creation (see Proposal Creation section).

Proposers

A Proposer MUST have an Algorand Address.

KYC

A Proposer MUST have a valid or invalid KYC status, defined by a KYC process.

The Proposer KYC status MUST have an expiration date.

The KYC Provider SHALL update the Proposer KYC status after the KYC process.

The KYC Provider MAY update the Proposer KYC during its validity.

The Proposer KYC status MUST be valid and not expired to receive Proposal funding.

Subscription

A Proposer Fee MUST be paid to the xGov Treasury for the subscription.

📝 NOTE

The xGov Manager MAY modify the Proposer Fee.

The Proposer Fee has the following scope:

  1. Covering the KYC process costs;

  2. Covering the Proposer Box MBR (see below).

Proposer Box

A Proposer is associated with a Box on the xGov Registry, called Proposer Box.

The Proposer Fee MUST be paid to the xGov Treasury upon creating the Proposer Box.

The Proposer SHOULD pay the Proposer Fee.

Proposer Box ID is equal to [P||<proposer address>], where P is a domain separation prefix and || denotes concatenation.

A Proposer Box has the following ABI schema:

{
    "active_proposal": "bool",
    "kyc_status": "bool",
    "kyc_expiring": "uint64"
}

The Proposer Fee MUST NOT be lower than the Proposer Box MBR.

Proposal

A Proposal is a funding request from the xGov Treasury, which is approved or rejected by the xGov Committee vote and reviewed by the xGov Council.

A Proposal consists of:

  • Proposal Application, with REQUIRED data;

  • Proposal metadata.

The Proposal Application is created and funded by the xGov Registry App (see Creation section) through the Open Proposal Fee.

Lifecycle

The Proposal life cycle has four phases:

  1. Creation;

  2. Discussion & Submission;

  3. Vote & Review;

  4. Finalization.

Funding Types

The Proposals have two different funding types:

  1. Retroactive

    • Claim: “I have done X, which has benefited the Algorand ecosystem because of Y metrics, I would like to receive Z as compensation for the work”.

    • Positive outcome: funding is immediately disbursed if the Proposal is approved by the xGov Committee vote, and the xGov Council does not apply a veto according to the terms and conditions.

  2. Proactive (NOT AVAILABLE YET)

    • Claim: “I want to do X, it has the potential Y for the Algorand ecosystem, I would like to receive Z staggered behind these milestones”.

    • Positive outcome: funding will be disbursed if the Proposal is approved by the xGov Committee vote, after milestone reviews from the xGov Council, and if the xGov Council does not apply a veto according to terms and conditions.

Funding Sizes

Proposals have different funding sizes based on the requested funding amount.

The funding size defines the timing of the Proposal lifecycle and the voting quorums.

The Proposal’s requested amount (\( A \)) MUST be bounded as follows:

SmallMediumLarge
Requested Amount\( A_\min ≤ A < A_{S,\max} \)\( A_{S,\max} ≤ A < A_{M,\max} \)\( A_{M,\max} ≤ A < A_{L,\max} \)
Discussion time\( D_S \)\( D_M \)\( D_L \)
Voting time (after discussion)\( V_S \)\( V_M \)\( V_L \)
Democratic Quorum\( Q_{d,S} \)\( Q_{d,M} \)\( Q_{d,L} \)
Weighted Quorum\( Q_{w,S} \)\( Q_{w,M} \)\( Q_{w,L} \)

📝 NOTE

Refer to the Proposal implementation configuration for the parameters’ value.

Metadata

The Proposal Metadata byte length MUST NOT exceed 30 kB.

The Proposal Metadata is stored in a Box on the Proposal Application, called Metadata Box.

The Proposal Metadata Box ID is equal to metadata.

The Proposal Metadata Box body has no ABI schema (raw bytes).

Finite-State Machine

A Proposal SHALL be in one of the following enumerated statuses:

StatusEnumDescription
EMPTY0The xGov Registry creates an empty proposal, the Proposer SHOULD open a draft (or it SHOULD be finalized for staleness)
DRAFT10The Proposer MAY submit (with updated metadata) or drop the draft (or it SHOULD be finalized for staleness)
SUBMITTED20The xGov Daemon SHALL assign the xGov Committee to the submitted proposal, which is then opened to vote
VOTING25The xGov Committee MAY vote the proposal until the voting session expires
APPROVED30The outcome of the vote scrutiny (quorum and majority) approved the proposal, the xGov Council SHALL review it
REJECTED40The outcome of the vote scrutiny (quorum and majority) rejected the proposal, it SHOULD be finalized
REVIEWED45The xGov Council positively reviewed the approved proposal (T&C, etc.), the xGov Payor MAY disburse the requested amount
BLOCKED60The xGov Council blocked the approved proposal with veto, it SHOULD be finalized, the requested amount MUST NOT be paid, the locked amount MUST be slashed
FUNDED50The xGov Payor paid the requested amount, it SHOULD be finalized
FINALIZEDboolThe proposal life cycle is terminated and MAY be deleted

📝 NOTE

The FINALIZED boolean flag is not an enumerated state, since it can be superposed to several states (i.e., EMPTY, DRAFT, REJECTED, BLOCKED, and FUNDED). Example: a Proposal can be FUNDED and FINALIZED.

Proposal Finite-State Machine

Escrow

The Proposal Escrow is an Address controlled by the Proposal Application.

Escrow Inflows

  • Partial Open Proposal Fees from xGov Treasury

  • Proposal Commitment Lock from the Proposer

Escrow Outflows

  • Operation Funds to xGov Daemon on Proposal submission

  • Proposal Commitment Lock to xGov Treasury if the Proposal is blocked with a veto

  • Decommissioned MBRs to xGov Treasury

Escrow MBRs

  • Proposal Application Account

  • Metadata Box

  • xGov Committee Voters Boxes

Creation

Proposers can create a Proposal at any time.

The Proposer MUST provide the following REQUIRED data to open a Proposal:

  • Title: a short name for the Proposal;

  • Focus: an enumerative focus area (e.g., Wallets, SDKs, etc.);

  • Funding Type: enumerative for Retroactive or Proactive (currently just Retroactive);

  • Requested Amount (in 𝜇ALGO).

A Proposer MUST NOT have more than one active proposal at any time.

The Proposer creates a Proposal Application from the xGov Registry.

Upon Proposal creation, an Open Proposal Fee MUST be paid to the xGov Treasury.

The Open Proposal Fee MUST NOT be lower than the sum of:

  • Proposal Application MBR;

  • Proposal Escrow Account MBR;

  • Full Metadata Box MBR;

  • Daemon Operations Funding.

The Proposal Application MBR is deducted from the Open Proposal Fee; the remainder MUST be entirely transferred to the Proposal Escrow.

📝 NOTE

The xGov Manager MAY update the Proposal Fee.

The remainder of the Open Proposal Fee MUST cover the MBR of all the Boxes required by the xGov Committee assigned to the Proposal upon opening.

📎 EXAMPLE

Given a Proposer Voter Box size, the Open Proposal Fee amount SHOULD be proportional to the xGov Committee size. The Voter Box MBR is roughly \( 0.02 \) ALGO. Example: an xGov Committee of \( 500 \) voters requires roughly \( 10 \) ALGO of MBR to the Proposal Application.

The Proposer SHOULD pay the Open Proposal Fee.

The Open Proposal Fee has the following scope:

  1. Anti-spam measure;

  2. Covering Proposal Escrow Account MBR;

  3. Covering Proposal Metadata Box MBR;

  4. Covering xGov Committee Boxes MBR (introduced later).

  5. Covering xGov Daemon operation fees for the Proposal.

Upon opening the Proposal Draft, the Proposer MUST lock in the Proposal Escrow a percentage of the requested funding amount as a commitment.

📝 NOTE

The xGov Manager MAY update the percentage of the requested funding amount to commit.

The locked amount SHALL be either:

  • Returned to the Proposer when the Proposal is:

    • Funded or Rejected;
    • Dropped by the Proposer before submission.
  • Slashed if the Proposal is blocked with a veto by the xGov Council.

Upon proposal opening, the xGov Committee ID, total members, and total voting power MUST be fetched from the xGov Registry and assigned to the Proposal.

The xGov Daemon MAY finalize the Empty Proposal if it becomes stale (the Proposer does not open a Draft).

Discussion

The Proposer MAY update the Proposal Metadata during the discussion phase.

The Proposer SHALL NOT change the Proposal REQUIRED data (e.g., the requested amount) during the discussion phase.

To change the Proposal REQUIRED data, the Proposer MUST drop the Proposal Draft and open a new one.

Submission

The Proposer SHALL submit the Draft Proposal after the minimum discussion period (depending on the Proposal funding size).

The xGov Daemon MAY finalize the Draft Proposal if it becomes stale (the Proposer does not submit the Draft).

The Proposal Metadata SHOULD be submitted from the xGov Portal (front-end).

The Proposal MUST NOT be submitted without Metadata.

Upon proposal submission, a percentage of the Open Proposal Fee SHALL be transferred from the Proposal Escrow to the xGov Daemon to cover the operation fees.

📝 NOTE

The xGov Manager MAY update the percentage of the Open Proposal Fee transferred to the xGov Daemon.

xGov Committee Assignment

The xGov Daemon SHALL assign the xGov Committee of the Submitted Proposal.

The assigned xGov Committee MUST have the size (total members) and voting power (total votes) of the xGov Committee ID (see xGov Committee section).

The Proposal status MUST be set to Voting once the xGov Committee is completely assigned.

Voters

The xGov Committee Voters are represented by a set of Boxes on the Proposal Application (one box per xGov Committee Member), called the Voter Box.

The xGov Daemon SHALL create all the Voter Boxes once the Proposal is Submitted.

Voter Box MBR MUST be covered by the Partial Open Proposal Fee.

Voter Box ID is equal to [V||<xgov address>], where V is a domain separation prefix, <xgov address> is the same as used by the xGov upon subscription, and || denotes concatenation.

A Voter Box has the following ABI schema:

{
    "votes": "unit32",
    "voted": "bool"
}

Vote Opening

The Submitted Proposal MUST be promoted to Voting once the xGov Committee has been completely assigned.

The duration of the voting session depends on the Proposal funding sizes.

The Voting Proposal MUST stay open until either:

  • All the xGov Committee members have voted, or

  • The voting duration expires.

Votes

xGovs vote MUST BE either “Approve”, “Reject”, or “Null”.

xGovs MAY abstain from voting.

xGovs SHALL vote once per Proposal: the allocation of “Approve”, “Reject”, and “Null” votes MUST be simultaneous.

Vote usage MAY be partial. Unused votes are default “Null”.

The sum of “Approve”, “Reject”, and “Null” votes of each xGov MUST equal to the xGov voting power.

Vote SHALL NOT be modified.

📎 EXAMPLE

Pooled Vote Example: Let’s have an xGov Staking Pool with N votes. The Pool SHOULD collect poolers’ opinions before expressing the Pool vote accordingly. Once the Pool is ready to vote, the allocation of N votes among “Approve”, “Reject”, or “Null” is simultaneous and can no longer be modified.

Voting Outcome

A Submitted Proposal is Approved if and only if all the following conditions hold:

  • A category-dependent democratic quorum of all xGov Committee (one xGov, one vote) is reached. “Null” votes affect this quorum.

  • A category-dependent weighted quorum of all xGov Committee voting power is reached. “Null” votes affect this quorum.

  • The relative majority of “Approve” over “Reject” votes is reached. “Null” votes do not affect the relative majority.

And it is Rejected otherwise.

The Commitment Lock MUST be returned to the Proposer if the Proposal is Rejected.

Review

The xGov Council MUST review Approved Proposals.

The xGov Council MAY apply a veto to an Approved Proposal.

An Approved Proposal is considered either:

  • Blocked, if the veto is applied;

  • Reviewed, if the veto is not applied.

In case of a Blocked Proposal:

  • The requested amount MUST NOT be paid.

  • The Commitment Lock MUST be transferred (slashed) from the Proposal Escrow to the xGov Treasury.

Finalization

Payment

The xGov Payor MAY pay a Reviewed Proposal and promote it to Funded.

If the Proposal is Funded:

  • The requested amount MUST BE transferred from the xGov Treasury to its Proposer.

  • The Commitment Lock MUST be returned to the Proposer.

Finalize

The xGov Daemon SHOULD finalize:

  • Empty and Draft Proposals, after a stale period,

  • Funded, Rejected, or Blocked Proposals.

If a Draft Proposal is finalized, the Commitment Lock MUST be returned to the Proposer.

The xGov Daemon SHALL delete the Voter Boxes of Funded, Rejected, or Blocked Proposals.

All Voter Box MUST be deleted before finalizing the Proposal.

Outstanding balance of the Proposal Escrow MUST be returned to the xGov Treasury.

Delete

The xGov Manager MAY delete Finalized Proposals.

The Proposal Metadata MUST be deleted before deletion (Empty Proposals are an exception).

Proposal Escrow MUST be closed to the xGov Treasury before deletion.

Numeric Precisions

Percentages

All the percentages MUST have a precision of two decimals and be expressed as basis-points (bps) scaled as Algorand Virtual Machine (AVM) uint64.

📎 EXAMPLE

The AVM works with uint64, therefore \( 100.00 \% = 10{,}000 \mathrm{bps} \). So, \( 12.5 \% \) of \( X \) is calculated on the AVM as:

$$ \frac{1{,}250 \mathrm{bps} \times X}{10{,}000 \mathrm{bps}}. $$

Testing

xGov Architecture uses the PyTest framework for unit tests and end-to-end tests.

PyTest fixtures are organized hierarchically in the tests folder: fixtures defined in the conftest.py file at higher levels are available to all the nested-level tests.

Configuration

PARAMETERCLIENT VALUECLIENT UNITAVM VALUEAVM UNIT
xGov Fee\( 10 \)ALGO\( 10 \times 10^6 \)𝜇ALGO
Proposer Fee\( 100 \)ALGO\( 100 \times 10^6 \)𝜇ALGO
Open Proposal Fee\( 100 \)ALGO\( 100 \times 10^6 \)𝜇ALGO
Daemon Operation Funding\( 5 \)% of Open Proposal Fee\( 500 \)bps
Proposal Commitment\( 3 \)% of Requested Amount\( 300 \)bps
Minimum Requested Amount\( 2{,}500 \)ALGO\( 2{,}500 \times 10^6 \)𝜇ALGO
Maximum Requested Amount Small\( 25{,}000 \)ALGO\( 25{,}000 \times 10^6 \)𝜇ALGO
Maximum Requested Amount Medium\( 100{,}000 \)ALGO\( 100{,}000 \times 10^6 \)𝜇ALGO
Maximum Requested Amount Large\( 200{,}000 \)ALGO\( 200{,}000 \times 10^6 \)𝜇ALGO
Discussion duration Small\( 3 \)Week\( 1{,}814{,}400 \)seconds
Discussion duration Medium\( 3 \)Week\( 1{,}814{,}400 \)seconds
Discussion duration Large\( 3 \)Week\( 1{,}814{,}400 \)seconds
Voting duration Small\( 1 \)Week\( 604{,}800 \)seconds
Voting duration Medium\( 1 \)Week\( 604{,}800 \)seconds
Voting duration Large\( 2 \)Week\( 1{,}209{,}600 \)seconds
Quorum Small\( 30 \)%\( 3{,}000 \)bps
Quorum Medium\( 50 \)%\( 5{,}000 \)bps
Quorum Large\( 70 \)%\( 7{,}000 \)bps
Weighted Quorum Small\( 50 \)%\( 5,000 \)bps
Weighted Quorum Medium\( 60 \)%\( 6,000 \)bps
Weighted Quorum Large\( 70 \)%\( 7,000 \)bps

Deployment

xGov Registry

NetworkxGov Registry
Main Net3147789458
Test Net742949200

xGov Council

NetworkxGov Council
Main NetTBD
Test NetTBD

App Specs

App SpecLink
xGov RegistryAppSpec
ProposalAppSpec
xGov CouncilAppSpec

CI/CD

Branch Management

---
title: Trunk-based with CD
---
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gitGraph
   commit tag: "0.37.0"

   branch "feat/add-foo-123"
   branch "feat/add-bar-123"

   checkout "feat/add-foo-123"
   commit id: "feat(foo): ..."
   commit id: "doc(foo): ..."
   checkout main
   merge "feat/add-foo-123" tag: "v1.0.0.canary.1"

   branch "feat/add-baz-123"
   commit id: "feat(baz): ..."
   commit id: "doc(baz): ..."
   commit id: "test(baz): ..."

   checkout "feat/add-bar-123"
   commit id: "chore(bar): ..."
   commit id: "feat(bar): ..."
   checkout main
   merge "feat/add-bar-123" tag: "v1.0.0.canary.2"

   checkout main
   branch "version/1.0.0"
   commit id: "bump(v1.0.0): pyproject.toml"

   checkout main
   branch release
   merge "version/1.0.0"
   commit id: "release(v1.0.0): ..." tag: "v1.0.0"

   checkout main
   merge release
   checkout main
   merge "feat/add-baz-123" tag: "v1.1.0.canary.1"

Protected Branches

  • main (default), the trunk
  • release

The trunk is considered stable and MUST:

  • Reject commits not included in a Pull Request
  • Require Docs and TestNet deployments to be healthy to accept commits from release
  • Meet the quality criteria defined in the CI/CD pipeline

The release branch MUST:

  • Be kept in sync with main
  • Be used to generate release tags
  • Reject commits from branches other than main that are:
    • Not included in a Pull Request
    • Have a diff that is not strictly equal to the pyproject.toml version bump.

The CI/CD pipeline ensures that:

  • The main branch contains release-grade code at any time (both for Smart Contracts and Docs)

  • The release branch is synced with main and used only to generate release tags (reflected as pyproject.toml version)

Unprotected Branches

Features, major refactoring, dependency bumps, or bugfixes SHALL be carried out on a dedicated unprotected branch pointing to the trunk (main).

The pyproject.toml release version bumps SHALL be carried out on a dedicated unprotected branch pointing to the release branch.

Draft Pull Requests from unprotected branches, either to main or release, SHOULD skip the CI.

Deployments

The CD makes use of the following deployment environments:

  • github-pages: to host the static documentation (mdBook)

  • contract-testnet: to continuously deploy Smart Contracts to the Algorand TestNet

  • contract-mainnet: to deploy Smart Contracts to the Algorand MainNet on release

Implementation

The CI/CD pipeline is implemented with the following automated workflows:

  • Smart Contracts CI (tests, lint, output stability, mock deployment)

  • Smart Contracts CD (to TestNet)

  • Documentation CI (tests, lint)

  • Documentation CD (to GitHub Pages)

  • Release CI (validate release tag, version, etc.)

  • Release (to MainNet)

And two manually dispatchable workflows:

  • xGov Registry parameters configuration
  • xGov Registry RBAC management

Security Policy

We take the security of the xGov architecture very seriously. This document outlines our security policy and the process for reporting vulnerabilities.

Reporting a Vulnerability

If you discover a security vulnerability, we ask that you report it to us as quickly as possible.

Please:

  • Do not disclose it publicly,
  • Do not create an issue/pull request on GitHub.

Private Disclosure Process

To ensure the security of the xGov platform, we require all vulnerability findings to be disclosed privately.

Please follow these guidelines:

  1. Reporting Channel: All bug reports MUST be submitted to the dedicated Algorand Foundation security email address: security@algorand.foundation.

  2. Confidentiality: All communications and information shared during the disclosure process MUST be kept confidential.

  3. No Public Disclosure: Please do not publicly disclose any vulnerability until it has been patched and approved for public release by the Algorand Foundation. Unauthorized public disclosure will result in disqualification from the bug bounty program.

  4. Documentation: Your report should be as detailed as possible, including:

    • Repository version and commit hash.
    • A clear description of the vulnerability.
    • Steps to reproduce the vulnerability.
    • Any relevant proof-of-concept code or scripts.
    • The potential impact of the vulnerability.
    • Recommendations for remediation, if applicable.
    • A template table with finding logs on the source code references, example:
FINDING IDSEVERITYLOCATION (path-to-file:line-number)DESCRIPTIONPROPOSED SOLUTION (Optional)
H-001Highsmart_contracts/xgov_registry/contract.py:42
L-001Lowsmart_contracts/artifacts/xgov_registry/XGovRegistry.approval.teal:420

Upon receiving your report, the Algorand Foundation security team will acknowledge the receipt and begin the validation process.

The security team will communicate with you regularly regarding the status of your submission and any necessary follow-up.

Bug Bounty

The Algorand Foundation offers a bug bounty focused on the smart contracts that power the xGov Beta program.

This initiative aims to enhance the security and robustness of the xGov Beta architecture by leveraging the expertise of the white-hat hacker community.

The bug bounty program rewards participants who successfully identify and privately report vulnerabilities within the xGov Beta smart contracts implementation.

Rewards (in ALGO) will be tiered based on the criticality of the discovered flaws, categorized as follows:

SEVERITYDESCRIPTIONREWARD AMOUNT
HighBugs that could lead to the loss of user-committed funds in Proposals.50,000 ALGO
MediumFlaws that could result in the loss of xGov Treasury funds.30,000 ALGO
LowIssues that might lead to an inconsistent state (e.g., unauthorized voting, bypassing process gates, etc.).15,000 ALGO

We encourage all interested security researchers to participate and contribute to the secure evolution of the xGov platform.

Contribution Guidelines

The xGov Architecture source code is released on the official GitHub repository.

Issues can be submitted on the GitHub issues page.

External contributions to tests and documentation are welcome. If you would like to contribute, please read these guidelines and consider submitting a Pull Request.

Docs Guidelines

By clicking on the “Suggest an edit” icon in the top-right corner, while reading this book, you will be redirected to the relevant documentation source code file to be referenced in an Issue or edited in a Pull Request.

The xGov Architecture Specifications book is built with mdBook.

The book is written in CommonMark.

The CI pipeline enforces Markdown linting, formatting, and style checking with markdownlint.

Numbered Lists

Numbered lists MUST be defined with 1-only style.

📎 EXAMPLE

1. First item
1. Second item
1. Third item

Result:

  1. First item
  2. Second item
  3. Third item

Tables

Table rows MUST use the same column widths.

📎 EXAMPLE

✅ Correct table format

| Month    | Savings |
|----------|---------|
| January  | €250    |
| February | €80     |
| March    | €420    |

❌ Wrong table format

| Month | Savings |
|----------|---------|
| January | €250 |
| February | €80 |
| March | €420 |

Result:

MonthSavings
January€250
February€80
March€420

Consider aligning text in the columns to the left, right, or center by adding a colon : to the left, right, or on both sides of the dashes --- within the header row.

📎 EXAMPLE

| Name   | Quantity | Size |
|:-------|:--------:|-----:|
| Item A |    1     |    S |
| Item B |    5     |    M |
| Item C |    10    |   XL |

Result:

NameQuantitySize
Item A1S
Item B5M
Item C10XL

MathJax

Mathematical formulas are defined with MathJax.

mdBook MathJax documentation.

Block Styles

Block styles are defined in the ./docs/_include/styles.md file using the mdBook include feature.

Block styles (e.g., examples, implementation notes, etc.) are “styled quote” blocks included in the book.

📎 EXAMPLE

This example block has been included with the following syntax:

{{#include ./_include/styles.md:example}}
> This example block has been included with the following syntax:

License

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the scope of its coverage, prohibits the exercise of, or is
conditioned on the non-exercise of one or more of the rights that are
specifically granted under this License.  You may not convey a covered
work if you are a party to an arrangement with a third party that is
in the business of distributing software, under which you make payment
to the third party based on the extent of your activity of conveying
the work, and under which the third party grants, to any of the
parties who would receive the covered work from you, a discriminatory
patent license (a) in connection with copies of the covered work
conveyed by you (or copies made from those copies), or (b) primarily
for and in connection with specific products or compilations that
contain the covered work, unless you entered into that arrangement,
or that patent license was granted, prior to 28 March 2007.

  Nothing in this License shall be construed as excluding or limiting
any implied license or other defenses to infringement that may
otherwise be available to you under applicable patent law.

  12. No Surrender of Others' Freedom.

  If conditions are imposed on you (whether by court order, agreement or
otherwise) that contradict the conditions of this License, they do not
excuse you from the conditions of this License.  If you cannot convey a
covered work so as to satisfy simultaneously your obligations under this
License and any other pertinent obligations, then as a consequence you may
not convey it at all.  For example, if you agree to terms that obligate you
to collect a royalty for further conveying from those to whom you convey
the Program, the only way you could satisfy both those terms and this
License would be to refrain entirely from conveying the Program.

  13. Remote Network Interaction; Use with the GNU General Public License.

  Notwithstanding any other provision of this License, if you modify the
Program, your modified version must prominently offer all users
interacting with it remotely through a computer network (if your version
supports such interaction) an opportunity to receive the Corresponding
Source of your version by providing access to the Corresponding Source
from a network server at no charge, through some standard or customary
means of facilitating copying of software.  This Corresponding Source
shall include the Corresponding Source for any work covered by version 3
of the GNU General Public License that is incorporated pursuant to the
following paragraph.

  Notwithstanding any other provision of this License, you have
permission to link or combine any covered work with a work licensed
under version 3 of the GNU General Public License into a single
combined work, and to convey the resulting work.  The terms of this
License will continue to apply to the part which is the covered work,
but the work with which it is combined will remain governed by version
3 of the GNU General Public License.

  14. Revised Versions of this License.

  The Free Software Foundation may publish revised and/or new versions of
the GNU Affero General Public License from time to time.  Such new versions
will be similar in spirit to the present version, but may differ in detail to
address new problems or concerns.

  Each version is given a distinguishing version number.  If the
Program specifies that a certain numbered version of the GNU Affero General
Public License "or any later version" applies to it, you have the
option of following the terms and conditions either of that numbered
version or of any later version published by the Free Software
Foundation.  If the Program does not specify a version number of the
GNU Affero General Public License, you may choose any version ever published
by the Free Software Foundation.

  If the Program specifies that a proxy can decide which future
versions of the GNU Affero General Public License can be used, that proxy's
public statement of acceptance of a version permanently authorizes you
to choose that version for the Program.

  Later license versions may give you additional or different
permissions.  However, no additional obligations are imposed on any
author or copyright holder as a result of your choosing to follow a
later version.

  15. Disclaimer of Warranty.

  THERE IS NO WARRANTY FOR THE PROGRAM, TO THE EXTENT PERMITTED BY
APPLICABLE LAW.  EXCEPT WHEN OTHERWISE STATED IN WRITING THE COPYRIGHT
HOLDERS AND/OR OTHER PARTIES PROVIDE THE PROGRAM "AS IS" WITHOUT WARRANTY
OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.  THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE PROGRAM
IS WITH YOU.  SHOULD THE PROGRAM PROVE DEFECTIVE, YOU ASSUME THE COST OF
ALL NECESSARY SERVICING, REPAIR OR CORRECTION.

  16. Limitation of Liability.

  IN NO EVENT UNLESS REQUIRED BY APPLICABLE LAW OR AGREED TO IN WRITING
WILL ANY COPYRIGHT HOLDER, OR ANY OTHER PARTY WHO MODIFIES AND/OR CONVEYS
THE PROGRAM AS PERMITTED ABOVE, BE LIABLE TO YOU FOR DAMAGES, INCLUDING ANY
GENERAL, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE
USE OR INABILITY TO USE THE PROGRAM (INCLUDING BUT NOT LIMITED TO LOSS OF
DATA OR DATA BEING RENDERED INACCURATE OR LOSSES SUSTAINED BY YOU OR THIRD
PARTIES OR A FAILURE OF THE PROGRAM TO OPERATE WITH ANY OTHER PROGRAMS),
EVEN IF SUCH HOLDER OR OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

  17. Interpretation of Sections 15 and 16.

  If the disclaimer of warranty and limitation of liability provided
above cannot be given local legal effect according to their terms,
reviewing courts shall apply local law that most closely approximates
an absolute waiver of all civil liability in connection with the
Program, unless a warranty or assumption of liability accompanies a
copy of the Program in return for a fee.

                     END OF TERMS AND CONDITIONS

            How to Apply These Terms to Your New Programs

  If you develop a new program, and you want it to be of the greatest
possible use to the public, the best way to achieve this is to make it
free software which everyone can redistribute and change under these terms.

  To do so, attach the following notices to the program.  It is safest
to attach them to the start of each source file to most effectively
state the exclusion of warranty; and each file should have at least
the "copyright" line and a pointer to where the full notice is found.

    <one line to give the program's name and a brief idea of what it does.>
    Copyright (C) <year>  <name of author>

    This program is free software: you can redistribute it and/or modify
    it under the terms of the GNU Affero General Public License as published
    by the Free Software Foundation, either version 3 of the License, or
    (at your option) any later version.

    This program is distributed in the hope that it will be useful,
    but WITHOUT ANY WARRANTY; without even the implied warranty of
    MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
    GNU Affero General Public License for more details.

    You should have received a copy of the GNU Affero General Public License
    along with this program.  If not, see <https://www.gnu.org/licenses/>.

Also add information on how to contact you by electronic and paper mail.

  If your software can interact with users remotely through a computer
network, you should also make sure that it provides a way for users to
get its source.  For example, if your program is a web application, its
interface could display a "Source" link that leads users to an archive
of the code.  There are many ways you could offer source, and different
solutions will be better for different programs; see section 13 for the
specific requirements.

  You should also get your employer (if you work as a programmer) or school,
if any, to sign a "copyright disclaimer" for the program, if necessary.
For more information on this, and how to apply and follow the GNU AGPL, see
<https://www.gnu.org/licenses/>.