Jun 30, 2022
Disclaimer: Algorand Cayman SEZC and its wholly owned subsidiaries, all of which are Cayman Islands subsidiaries of Algorand, Inc., are now the sole owners of all tokens held by any of Algorand, Inc. and its subsidiaries. References to “Algorand” in this transparency report refer to Algorand Cayman SEZC and its subsidiaries, and all transactions described in this report that use the Algo token are made by Algorand outside the United States with non-US counterparties or otherwise handled in full compliance with US securities laws and regulations.
Algorand is committed to providing full transparency into our actions and token holdings. As previously outlined, we will be providing transparency reports on a periodic basis. This report covers the period from May 1, 2021 through June 30, 2022.
Our wallet addresses, previous transparency reports, and statement of use can be found here.
As of June 30, 2022, Algorand beneficially owns 1.691 billion Algos through direct custody as well as investments. Additionally, as described below, Algorand has deployed approximately 228 million Algos over this period (14 months) to various market & application development Algorand ecosystem use cases. Algorand’s beneficial ownership of Algos is expected to continue to decrease over time as we deploy Algos to various market and application development projects.
Use of tokens
To date, there have been two primary uses of tokens held by Algorand: 1) incentives to build and contribute to the growth of the Algorand platform, and 2) development and growth of the financial ecosystem.
Incentives to contributors and application developers through token grants, competitions, and investments.
Total Algos: ~1.509 billion (up from ~240.5 million at last report)
Development of the financial ecosystem by encouraging growth and liquidity through support of partner solutions including lending, staking, and market making.
Total Algos: Approximately 130 million (reduced from 201 million at last report)
As described below, a limited number of tokens have been sold to fund development initiatives. All other token movements represent internal transfers between wallets for rebalancing.
Since network launch, Algorand, Inc. has continued to reduce its voting influence over the network. Our commitment to responsible decentralization is described in more detail here.
As previously described, Algorand sells tokens periodically to fund development initiatives and to invest in other ecosystem projects. Any sales will follow the guidelines below which have been designed to limit market impact.
For any Algos sold by Algorand:
During the period (approximately 14 months), Algorand sold approximately 150 million Algos through the methodology described above. During this time, Algorand represented 0.18% of volume across major exchanges according to Messari.
Algorand will continue to support core protocol development on an ongoing basis, at a minimum for AT LEAST the next 7 years and has received 330 million Algos to fund grants and development efforts related to layer 1 support over this time. These Algos are included in our public wallets.
Decentralization of Algorand tokens
Algorand continues to decentralize control of the 2 billion Algos received as part of the Founders’ reward. As other parties become responsible for these tokens through distributions and grants, Algorand, Inc.’s stake will decrease over time.