The Algorand Foundation released a transparency report: Committed to selling no more than 150 million ALGO this year

Original source: Algorand official

This report period: February 11, 2020 – September 30, 2020

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The Algorand Foundation promises to remain completely open and transparent about ALGO holdings and changes. The duration of this report is approximately 6 months compared to the shorter reporting period of the previous period. In the future, the Algorand Foundation will publish a transparency report every six months to ensure consistency of reports and facilitate period-by-period comparisons.

The period covered in this report has witnessed profound changes in the world economy and society, and corresponding behavioral changes in the cryptocurrency market and community. During that time, Algorand was fortunate to recover from the "Black Thursday" crash that hit global markets hard after the start of the COVID-19 pandemic. In April of this year, the Algorand Foundation launched a large-scale ecosystem reward program to support and accelerate the construction of infrastructure and applications on the Algorand blockchain. Since this spring, the market has experienced faster-than-ever growth driven by innovations in the decentralized finance space, creating exciting momentum in the broader blockchain ecosystem.

Below we provide an overview of ALGO holdings and changes during this reporting period, as well as an outlook for the future of the ALGO token economy.

Previous transparency reports can be viewed: https://algorand.foundation/algorand-foundation-transparency-report----june-19th

Wallet addresses managed by the foundation can be viewed: https://algorand.foundation/updated-wallet-addresses/

Algorand Foundation Token Circulation Details

During the reporting period, the total number of ALGOs circulating through the following channels was 645.5 million:

01. Rewards, staking and unlocking: 512.5 million ALGO

Participation Rewards: 221.1 million* ALGOs are distributed to all ALGO holders as participation rewards according to the schedule listed on the "ALGO Dynamics" page.

200 million ALGO Staking Incentive Program: Algorand Foundation launched in August 2019 「200 Million ALGO Staking Incentive Program」, a total of 100 million ALGO has been issued so far. For details, please refer to the distribution details of the first and second phases (links below).

Relay node operation reward: During the reporting period, the relay node operator A total of 191.4 million **ALGOs were obtained.

*Participation rewards are calculated from February 5, 2020, as this was the last date included in the last transparency report.

**Since the last date included in the last transparency report was February 8, 2020, Relay Node running rewards are calculated from February 8, 2020.

Check the ALGO Dynamics page: https://algorand.foundation/algo-dynamics 

Check the first phase reward distribution details: https://algorand.foundation/period-1 -update 

Check the second phase reward distribution details: https://algorand.foundation/period-2-200m-algo-staking-rewards-program-update/

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02. Sales through structured sales: 69.4 million ALGO

During the reporting period, the Algorand Foundation distributed 69.4 million ALGO through a structured sale implemented since December 2019. The program is executed by an approved third party and follows guidelines consistent with previous reports from the Algorand Foundation (link below)***. The Algorand Foundation distributes ALGO to the market to fund operations, build ecosystems and communities, support research and development, and accelerate token circulation and decentralization. We will discuss how sales proceeds and ALGOs are being used to achieve these goals in our Ecosystem Development Progress Report (link below).

*** Algorand Foundation Structured Sales Principles:

Algorand Foundation only sells , and no bids are accepted.

In any period, Algo sales will not exceed 5% of the total market transaction value during the same period.

Further restrictions on selling include: If the secondary market price falls by more than 10% in any 24-hour period, the sale will be suspended; the sale can only be resumed after 24 hours after the price has stabilized or increased.

View the previous transparency report: https://algorand.foundation/algorand-foundation-transparency-report----june-19th 

< blockquote> View the progress of the ecosystem development including: https://algorand.foundation/ecosystem-development-progress

03, core agreement R&D and Ecosystem Rewards: 58M ALGO

Algorand Foundation paid 50.2M ALGO to Algorand Inc. as part of its 2019 agreement after mainnet launch R&D expenses. The most significant development is the release of Algorand 2.0, which introduces innovative Layer-1 Algorand Standard Assets (ASA), atomic transfers, and smart contract capabilities. Fees paid also include ecosystem development work outsourced to Algorand Inc., including use case development, developer engagement, and strategic partnerships.

During the reporting period, as 「 250 Million ALGO Incentive Program" and Part of the "Developer Incentive Program", Algorand Foundation The conference also distributed 7.8 million ALGOs to selected developers and teams. Note that this amount is only a small fraction of the overall rewards, as the Algorand Foundation pays most of the rewards in USD from token sale proceeds.

See the full list of recipients:

https://algorand.foundation/2020-grant-recipients

04. Others: 5.6 million ALGO

Total 200,000 ALGO are used to remunerate members of the Algorand Foundation's Board of Directors and Advisory Committee. A total of 5.4 million ALGOs were used to promote Ambassador Incentive Program, community partnerships, and marketing partners to build Global awareness of the project.

The direction of Algorand’s future token economy

Participation rewards

The Algorand Foundation plans to increase the number of participation rewards for the rest of this year and 2021 based on the growth of circulation, as well as community feedback and market conditions. The Algorand Foundation will further research how to incentivize behavior and activities that benefit the Algorand ecosystem with minimal impact on market supply.

For the next stage, the participation rewards are set as follows:

Relay node operator unlock

According to EIP-11252019AF proposal ( link below), in 2021, the basic release amount of relay node operators is 8%, which is 200 million ALGO. In the case of ALGO price appreciation, the relay node reward will only exceed this amount, causing the 30-day moving average of ALGO price to reach a new all-time high. We believe that this algorithm of EIP will power the appropriate behavior of node operators.

View EIP-11253029AF proposal details:

https://algorandfoundation.cdn.prismic.io/algorandfoundation/eb2a8c69-2262-42f8 -99a4-09df485207b5_EIP-11252019AF_+Conditional+Accelerated+Vesting+Nov+30.pdf

Token Sale

We remain committed to selling no more than 150 million ALGOs in 2020. By 2021, we expect to allocate up to 170 million ALGOs into circulation as the ecosystem accelerates. The ongoing ALGO distribution process will be overseen by the Algorand Foundation Economic Advisory Committee, which is solely responsible for developing economic guidelines for the protocol.

A multi-year decentralization plan

The Algorand Foundation is committed to building a A more inclusive organic ecosystem with broad community participation, while maintaining the security of the protocol.

Just like starting "250 million ALGO reward plan" , the Algorand Foundation will introduce the first phase of the Community Fund in early 2021, where the community can vote on which bounty programs will be funded and prioritized. This will enable decentralized decision-making to community members, further empowering bounty applicants to participate in and create an open and transparent environment for the fast-growing Algorand ecosystem.

The Algorand Foundation is also partnering with leading institutions to commit long-term grants to new community-managed research, education and incubation programs to support ecosystem development and Participate in consensus. We will share the specifics of these projects with community members in the coming months.

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