Try Quests to earn cryptoAlgorand's gALGO3 Governance Token Data
While users lock their ALGO up on Folks Finance's platform for governance, they can receive gALGO3 tokens and use them for other DeFi activities.
Since the launch of Folks Finance in early April, the gALGO3 token has been available for trading and swapping on the platform. The daily number and volume of gALGO3 swaps have been shown in the charts below. As it can be seen on the charts, there is not any particular pattern in the amounts of swaps both to and from the gALGO3 tokens. However, there is a huge amount of trades on the 13th of April. The Folks Finance Algo Liquid Governance commitment came to an end on April 14 and the protocol had minted gALGO3 tokens at a one-to-one ratio in exchange for the delegated ALGOs. Thus, the reason behind the increase of trades on April 13th seems to be the aforementioned transition.
Among the Algorand ecosystem's DEXex, the gALGO3 token is only traded in the Pact and the Tinyman. The Tinyman had the majority share of trades by 88.4% compared to the 11.6% of Pact.
The lower share of Pact DEX is a reflection of its lower number of swaps either to or from the gALGO3 token. As it is demonstrated in the chart below, the majority of trades took place on the Tinyman platform.
There aren't many pairs for trading the gALGO3 token to or from at the moment. The majority of swaps are with ALGO tokens with over 99%. Less than a percent of swaps are between gALGO3 and YLDY token.
The Algorand ecosystem has transitioned to a new decentralized model for its governance since October 2021. For ALGO holders to become governors and participate in the governance decisions, they have to lock their ALGOs for a quarter. Thus, they will not be able to utilize their liquidity during the commitment period.
Folks Finance as one of the leading DeFi protocols on the Algorand ecosystem developed a new procedure that allows users who locked their ALGOs for governance purposes to acquire a new liquid asset names gALGO3 in exchange for their ALGOs. These tokens then can be used for other DeFi purposes.