Oct 31, 2020
By: Algorand, Inc
Disclaimer: Algorand Cayman SEZC , a Cayman Islands subsidiary of Algorand, Inc., is the sole owner of all tokens held by any of Algorand, Inc. or its subsidiaries. References to “Algorand” in this transparency report refer to Algorand Cayman SEZC, and all transactions, including all sales, loans, and other transactions described in this report that use the Algo are made by Algorand SEZC outside the United States and with non-US counterparties.
Algorand is committed to providing full transparency into our actions and token holdings. As previously outlined, we will be providing transparency reports on a regular basis. This report covers the period from August 1, 2020 through October 31, 2020. Our wallet addresses, previous transparency reports, and statement of use can be found here.
As of October 31, Algorand beneficially owns 2.009B Algos (up from 2B at launch). Of those, approximately 1.716B are held in the wallets we have publicly shared, and for the remaining 293M Algorand maintains legal ownership but not physical custody (as described below).
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: ~192 (up from 184M 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: 184.4M (no change from 184.4M 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 to ensure that participation remains below a 49% threshold at all times. Our commitment to this threshold and our focus on responsible decentralization is described in more detail here.
2020 Token Sales
As previously described, Algorand is selling tokens periodically in 2020 to fund development initiatives. Any sales will follow the guidelines below which have been designed to limit market impact.
For any Algos sold by Algorand:
For calendar year 2020, Algorand commits to sell no more than the rewards earned for supporting the network on the secondary market, and may sell fewer or stop selling Algos.
During the period, Algorand sold approximately 26M tokens through the methodology described above. During this time, Algorand represented 0.24% of volume across major exchanges according to Messari.