Aligning Algo Circulating Supply Metrics for Algorand Ecosystem

September 7th, 2021 - In preparation for Community Governance, the Algorand Foundation has worked with its partners within the Crypto Research ecosystem to ensure that a consistent view of circulating supply is applied across the key resources for blockchain information. Given the Algo’s innovative 10 year diffusion model, where the total and immutable supply of 10Bn Algo is diffused into the ecosystem up to 2030, there have been challenges in applying a consistent measurement approach to Algorand as other networks, who issued all/most of their native tokens in one event.

In agreement with the research websites ( CoinMarketCap, etc ), we have confirmed the following definition of circulating supply for the Algo and the Algorand network, which is consistent with their common metric used for circulating supply: All unrestricted Algo not held directly by the Algorand Foundation. 

Most notably, this means that the Algos held by Algorand Inc, whose amount and usage is regularly reported here https://www.algorand.com/transparency, will be included in the computation of circulating supply, without any change in Algorand Inc’s plans about their future holdings and commitment to the Algorand ecosystem. As a result, we expect to see a new value for circulating supply being shown by our Crypto Research partners this week. This more accurate metric should display a circulating supply of approx. 5.3Bn Algo.

While this is a change from the previously reported metric definition, it does not reflect any change in actual supply, as 5.76Bn Algo is the circulating supply currently shown by the block explorers in the Algorand ecosystem (https://algoexplorer.io/ as an example), which includes the 475M unrestricted Algo held by the Algorand Foundation, and shown on the Algorand Foundation website. As a result of this definition alignment exercise, the Algorand Foundation will also work with the block explorers to update their definition of circulating supply to this aligned definition and ensure a consistent view of circulating supply across the ecosystem.

Finally, the Foundation will continue to provide a metric, to be called Algo Liquid supply and defined as: All unrestricted Algo. This will include Algo held directly by the Algorand Foundation.