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.

Requested Amount

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

Funding Sizes

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

The funding size defines the timing of the Proposal lifecycle.

📝 NOTE

Refer to the Proposal implementation configuration for the Proposal lifecycle timing values.

Quorum Thresholds

$$ \newcommand \Comm {\mathsf{Comm}} \newcommand \Members {\mathrm{Members}} \newcommand \Votes {\mathrm{Votes}} $$

Proposals have two quorum thresholds based on the requested amount of funds.

The quorum thresholds define the minimum number of (regular and weighted) votes required to approve a Proposal:

• \( T(A) \), Democratic Quorum Threshold (1 xGov, 1 Vote);

• \( T_w(A) \), Weighted Quorum Threshold (1 xGov, w Votes).

Given the xGov Committee assigned to the Proposal, with its members and voting power (see the xGov Committee definition), the quorum thresholds are defined as follows:

• \( T(A) = \Members(\Comm) \times Q(A) \), with

$$ Q(A) = Q_\min + \frac{\Delta Q}{\Delta A} \times (A - A_\min) $$

• \( T_w(A) = \Votes(\Comm) \times Q_w(A) \), with

$$ Q_w(A) = Q_{w,\min} + \frac{\Delta Q_w}{\Delta A} \times (A - A_\min) $$

Where:

• \( Q_\min = Q(A_\min) \)
• \( Q_\max = Q(A_{L,\max}) \)
• \( Q_{w,\min} = Q_w(A_\min) \)
• \( Q_{w,\max} = Q_w(A_{L,\max}) \)
• \( \Delta Q = Q_\max - Q_\min \)
• \( \Delta Q_w = Q_{w,\max} - Q_{w,\min} \)
• \( \Delta A = A_{L,\max} - A_\min \)

📝 NOTE

Refer to the Proposal implementation configuration for the minimum and maximum quorum values.

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:

📝 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.