Algorand Foundation Transparency Report February 2020

Period: November 2, 2019 to February 10, 2020

The Algorand Foundation is committed to providing full transparency into our Algo holdings and distributions. This report covers the period from November 2, 2019 to February 10, 2020. Previous reports can be found here and the wallet addresses managed by the Foundation can be found here. We will continue to provide such reports periodically.

Details of tokens entered into circulation by the Foundation 

The total number of Algos introduced into circulation by the Foundation during the period covered by this report is approximately 126M, as detailed below. This is down from the 450M Algos that were injected into circulation in the previous period.  

  1. Participation rewards: 101M Algos. These are rewards that go to all Algo holders, and they are by far the largest contribution to token distribution. The Foundation reviews these rewards periodically to ensure the right incentives to Algo holders while avoiding inflationary effects. The distribution is based on the new schedule outlined on the updated Algo Dynamics page.

  2. Market Distribution: approximately 17M Algos.  Algos are distributed to the market by the Foundation to fund its operations, build the ecosystem and community, support research and development, and increase token circulation and decentralization. As also reported on the Algo Dynamics page, the Foundation plans to use a mixture of mechanisms for market distribution, ranging from public sales using a listing partner to structured selling and private sales. 

    In the period covered by our previous report, market distribution was tested via a public auction, for the amount of 25M Algos. During the period covered by this report, the Foundation did not run any auctions or public sales. Algo distribution was tested through a structured programmatic selling plan. The plan was carefully designed to minimize market impact.  The test was executed through approved 3rd parties, with the following guidelines:

    a. The Foundation only makes offers above market price, and doesn't sell into bids.
    b. Sales to remain materially below 5% of estimated real market volume on any given day.
    c. Further restrictions to sales, including a rule to halt selling if the secondary market price declines by more than 10% in any 24 hour period, and only to resume after the 24 hours have passed where the price has been stable or increased.

  3. Node runner rewards: 7.4M Algos.  Vesting remained suspended from Nov 2 to Dec 31. On Jan 1, 2020 node runner rewards restarted at 3% under the new vesting schedule voted on as part of EIP-11252019AF
  4. Compensation a total 125K Algos were used as compensation for members of the Foundation’s board of directors and its advisory committees.
  5. Others: a total of 312K Algos were used to build global awareness and promote the Algorand network through the Ambassador program & community partners.

As outlined on the Algo Dynamics page, the Algorand Foundation commits to sell no more than 150 million Algos in 2020.  Full transparency will be regularly provided to our community.