Algorand Foundation Transparency Report -- June 19th - November 1st, 2019

In an effort to provide full transparency on the actions of the Foundation since the auction of June 19, 2019, we are providing the following details on the token holdings and distribution of tokens by the Foundation. The report below is for the period June 19 to Nov. 1, 2019. We will provide such a report periodically.

The Foundation’s Tokens

The Foundation’s stake is 500M Algos (and the participation rewards thereof). This stake participates in the consensus protocol, contributing to the protocol’s integrity. As of Nov. 1, 2019, the Foundation has not sold any of its 500M tokens, nor the participation rewards generated from these tokens. These are the only Foundation tokens participating in consensus and receiving rewards. In particular, tokens held by the Foundation as a custodian that have not entered into circulation are not participating in consensus or receiving rewards (see wallets held by the Foundation). 

Details of tokens entered into circulation by the Foundation 

The total number of tokens introduced into circulation by the Foundation during the period covered by this report is about 440M as detailed next.

  1. Auction. On June 19, 2019, the Foundation sold 25M Algos in its first auction. Out of these, 19.9M have been returned as part of the early redemption program. On Nov. 1, 2019, 20.5M tokens were burnt, representing the original 19.9M that were redeemed and the awards they generated since they were put in the redemption account. For full description of the burning process, see here.
  2. Node runner rewards. Total: about 330M. About 3.2M per day between June 20 and Sept. 30, 2019 (for a total of 102 days). In response to an Economic Incentive Proposal submitted to the Foundation and public votes by early backers (also here), the Foundation suspended vesting of the node runner rewards beginning on Oct. 1, 2019. The suspension remains in effect as of Nov. 1, 2019. 
  3. Participation rewards: Total: 96M by Nov. 1, 2019, 11:59am SGT. Rewards are automatically distributed evenly among all the Algo accounts which are not locked, following the schedule posted on the token dynamics webpage.  
  4. Compensation for members of the Foundation’s board of directors and its advisory committees:  75K
  5. Others: Less than 2000 Algos for small testing purposes, fees for the transactions used in the auction, and various other uses.