General FAQ

All you need to know about Algorand's operations.

The Foundation

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What is the Borderless Economy?

Algorand and the Algorand Foundation have a vision for the borderless economy. At its most basic level, this is a digital economy where anything of value can be traded between two or more parties without the friction of current financial networks.

What is the relationship between Algorand Foundation and Algorand Inc?

The Algorand Foundation operates independently from Algorand Inc. The Algorand Foundation is a not-for-profit, community organisation focused on protocol governance, token dynamics and supporting grassroots, open-source development on the Algorand ecosystem. Algorand Inc is focused on layer-1 development of the Algorand Protocol and enabling Enterprise adoption of Algorand blockchain technology.

The Foundation and Inc. collaborate on exciting projects and initiatives to customize the value that we can bring towards the great Algorand community.

What do I need to do to earn participation rewards?

Participation rewards are now fully distributed per May 14th, 2022, and completely replaced by Governance Rewards moving forward. To participate in Algorand Community Governance and earn Governance rewards please see Algorand Community Governance.

Wallets

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Are there other wallets which support the Algo? (Atomic wallet, Pera wallet, MyAlgowallet, etc)? Do you have a list of all the genuine/approved wallets available?

Algorand does not have an approval policy for wallet support, and each wallet operator makes its own determination to support a cryptocurrency. A partial list of wallets supporting Algo and information related to wallets is available on Algo Page. The security of these wallets should be checked with the vendor directly. Algorand makes no representations regarding the functioning or security of third party wallets, and disclaims any liability therefor.

Algo Supply

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What is the max supply cap for Algorand?

The Max Supply for Algo is the 10 billion Algo minted at genesis.

Even though the entirety of the supply was minted at the launch of the network, thus giving Algorand a fixed outstanding supply, the liquid supply will increase as pre-minted tokens unlock and are distributed.  

The Foundation recently proposed a revised, long term Algo Dynamics model. Designed to run for a greater than 10-year period- that is up to 2030 and beyond - this new model will focus on programs around ecosystem support, community incentives, and the decentralization of decision making and governance on the Algorand blockchain - a long-held goal of the Algorand community. For more information on Algo supply and distribution see Tokenomics.

Does the Foundation own tokens?

The Foundation’s stake is 500M Algos (and the participation and governance rewards). This stake participates in the consensus protocol contributing to the protocol’s integrity.

What is the current circulating supply?

You can see the current circulating supply on AlgoExplorer and PureStake’s GoalSeeker.

Is there someplace where I can see a good description of how the initial Algo token distribution occurred, and how much stake the Algorand Foundation has in the network?

A good description is available on our Tokenomics page.

Is there a burning process for Algos?

The Algorand Foundation burnt the tokens from the initial auction that were refunded. For further information see:

June 2019: Burn of Early Redemption Auction Tokens

July 2020: Auction Redemption Complete: Redeemed tokens permanently removed from supply

Relay Nodes

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What nodes comprise the Algorand network?

The Algorand network is comprised of two distinct types of nodes: relay and participation nodes.

Relay nodes are primarily used for communication over the network.

Participation nodes can participate in the Algorand consensus protocol, and they communicate with each other (and with the blockchain) via the relay-node layer.

For more information, see the Algorand developer documentation.

Are there rewards for running nodes on Algorand?

Currently, the Algorand protocol does not include rewards for running nodes on the network.

As described below, the Algorand Foundation announces programs from time to time where it provides support for partners to run relay nodes.

Who is running relay nodes on the Algorand network?

While in principle anyone can run a relay node, the default behavior of an Algorand node is to only connect to relay nodes from a list that the Algorand Foundation maintains.

The relay nodes on that list are operated by Algorand Inc., Algorand Foundation, and participants in a few relay-node-running programs of the Foundation:

  • Until 2021, the Algorand Foundation issued token grants to Early Backers for running relay nodes. That program is now over, but some of the participants are still running relay nodes (with no support from the Foundation).
  • The Algorand Foundation also issued token grants to ten universities who are running relay nodes. This program is scheduled to run through Q2 2024.
  • In Q4 2021, the Foundation launched a Pilot Relay Node Program where it selected about 20 companies and individuals and provided support for them to run relay nodes in different configurations.
  • In Q2 2022, the Foundation launched a Community Relay Node Program where participants had to stake Algos in addition to running relay nodes. Eight companies were selected to this program, running additional 19 relay nodes.

Who manages the list of relay nodes? What about decentralization?

Currently, the Algorand Foundation manages the official list of relay nodes, to bootstrap a scalable and reliable initial infrastructure backbone.

It is important to stress, however, that anybody with an Algorand account can run a non-relay node and participate in the Algorand consensus protocol (i.e., be a validator).

Moreover, the integrity of the blockchain does not depend on the relay nodes: as long as sufficiently many participation nodes (in terms of stake) behave honestly, the blockchain cannot fork.

Even if all the relays misbehave, the worst that can happen is that the blockchain will slow down or stall.

The Algorand Foundation is researching options for making the decisions on relay nodes in a more decentralized way.

How many relay nodes are there?

As of Q2 2022, there are just under 120 relay nodes on the Algorand network.

Participation Nodes

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How can I participate in the Algorand consensus protocol?

Instructions for setting up participation nodes on Algorand and participating in the consensus protocol can be found off of the Algorand developer site.

See in particular https://developer.algorand.org/docs/run-a-node/setup/types/#start-node and https://developer.algorand.org/docs/run-a-node/participate/.

How many Algos do I need to run a participation node?

A participation node can be run for any Algorand account, whatever its balance is.

*Note however that any Algorand account must have a minimum balance of 0.1 Algo.

Algorand Foundation Ecosystem Funding Mechanism

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Fees

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Do sending and transacting with an Algorand Standard Asset (ASA) have higher fees than regular Algos?

No, sending and transacting with an ASA costs no more than sending and transacting with Algos.

There is some indirect cost as the minimum balance required in the account must be higher if it also holds ASAs.  If the account only holds Algos then the minimum balance is 0.1 Algos.  If there are ASAs then the required minimum is: 0.1 Algos times the number of ASA it holds plus one. For example, an Algorand account holding USDT must have a minimum balance of 0.2 Algos.

See https://developer.algorand.org/docs/features/asa/#assets-overview for further information.

What happens with the money that ends up in the fee sink? Who controls it?

At the moment, the Algo wallet receiving Algorand blockchain transaction fees is held by the Algorand Foundation. For the near term, the amount of Algo accumulating in this wallet is and will continue to be modest, based on the 0.001 Algo/transaction fee. Once the daily transaction level reaches a threshold, where the amount of Algo held in the wallet is material, the Foundation will engage with the community on how best these accumulating fees can be leveraged to support the ecosystem. As it currently stands, Algos in a fee sink can only be sent as participation rewards. A consensus upgrade has the possibility to change this should the community elect to do so.

How will you keep transaction fees low and stable in the long term?

The Algorand Foundation has no plans to review the transaction fee levels of the Algorand blockchain currently. As the steward of the Algorand ecosystem, the role of the Foundation would be to facilitate the wider Algorand community and ecosystem making that decision, if there is a proposal to examine that from within the community at any point in the future.

Governance FAQ

All you need to know about Algorand Community Governance

* Sign-up to Algorand Community Governance is done through a Zero Algo transaction ONLY. Please do not send Algo to the Governance escrow account as this will not sign you up as a Governor.  Algo sent in error to the Governance escrow account will be returned after the end of the Governance period.

Requirements

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Who can participate in Community Governance

All Algo holders are invited to become Governors and vote on important decisions regarding ecosystem development.Their votes will depend on the amount of Algos they will commit to governance for a 3 month period.

What is a Governor?

As currently defined, Governors are Algoholders who commit a governance stake for a 3 month governance period and voteas required during the governance period.

Is there a minimum or maximum Algo commitment amount for Community Governance?

There are no thresholds for a minimum or maximum commitment of Algo’s to Governance. We recommend you please only commit what you are able to commit and what you can comfortably maintain throughout each Governance period.

Is there a minimum/maximum number of governors?

There is no minimum/maximum number of governors. This is an open program and anyone willing to commit their Algos and vote can become governors.

How can I participate in Community Governance?

The Governors will have to commit an amount of Algos for a minimum of 3 months (length of a governing period). Please see our Governors guide for instructions on how to participate in the Community Governance.

Do I need to provide any identification (KYC) to participate in Community Governance?

No, there are no requirements to do so.

Are there any penalties if I withdraw committed Algo from my governing account before the end of the governance period?

Governors who withdraw Algo causing the number of Algo to drop below the committed amount of Algo at any point of time of the relevant governance period will not be entitled to claim the rewards of that governance period.

Will the account be eligible for rewards if I deposit more Algos into the participating account during the governing period?

Yes, it will. Please ensure you maintain your committed balance and ensure you vote during the voting window. Algos deposited after the beginning of a governing period, however, will not provide additional votes nor any additional rewards.

Do I need to setup a node in order to participate in Governance?

No, you do not need to run a node in order to participate in governance. Only the initial referendum requires running a node. Participating to governance will be not require running a node and we are committed to making the experience as easy as possible.

Mechanics and Wallets

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When is the sign-up period for Community Governance?

Community Governance features quarterly entry points, allowing participants to join the program on a voluntary basis. Please see https://governance.algorand.foundation/ for current and upcoming governance periods

Will Governors receive email communications related to updates and required actions during the Governance Period?

No, the foundation does not know who the governors are and does not have their contact information, so one-to-one email communications is not a viable option.

Updates and actions which need to be taken within each Governance Period will be clearly communicated through the Algorand Foundation website, our community newsletter and on our official social channels.

Please note integrated wallets (such as AlgoSigner, MyAlgoWallet, and the Pera Wallet) should provide notifications related to Community Governance and the web portal will also facilitate notifications.

Is everyone who holds Algo tokens automatically signed up to Community Governance?

No, Algo holders are not automatically signed up to Community Governance. Algo holders will need to go to the Governance webportal and declare how many Algo tokens they will commit to each Community Governance period during the sign up window. To participate, governors will have to sign a transaction to signify their commitment. The Governance webportal can be used to generate a transaction of the right format. A signed transaction to this effect will be required to participate, which you can create via the Governance web portal.

Will rolling over be automatically done for Governors from the previous period?

No. Governors will have to explicitly commit to becoming Governors for each Governance period.

Will I require a new wallet address to participate in Governance?

Governors can use their existing walletaddress to participate in governance, or they can establish a new walletaddress specifically for this purpose. It may be the easiest option to create awallet specifically to manage your commitment to Governance.

Will participation in governance be available using a Ledger Nano device? Will I be able to stake using my Ledger device?

You can use your Ledger device to participate in Community Governance with any wallet that has Ledger integration with support of a transaction notesfield.  If using Ledger Live, you will not be able to participate as LL does not support a transaction notes field.

I have an account with an exchange. Will major exchanges facilitate participation in Community Governance?

With exchanges you do not have your own wallet address. Exchanges will have different policies on how to participate and you will have to check the respective exchange policies for more information.

Can you use a multisig wallet to participate in Governance?

You can also use a multisig wallet to participate in Community Governance as long as you maintain your staked balance throughout the Governance Period.

I have Exodus tokens, will I be able to participate or do I have to move my Algo?

If you have an Algorand wallet that you control exclusively (Algorandaddress) you will be able to participate in voting, at least in the inception period. With an Algorand address you will be able to vote with your Algo balance, you cannot vote with any other asset on the Algorand network.

Do Exchanges receive a vote?

All Algo holders who commit to Governance will have a vote. This will include exchanges that hold Algo and participate in Governance.

As different exchanges operate differently, it will depend on the respective interactions exchanges have with their Algo holders. We have worked with exchanges and communicated instructions on how to provision governance participation for their customers.Consult your exchange to get more information about how they handle Algorand Community Governance.

Do you recommend Governors commit all their Algo tokens to Community Governance?

No, we would not recommend committing everyAlgo token you have to Community Governance. We recommend that you leave atleast 1 uncommitted Algo in your wallet. You need to maintain the committedAlgo throughout the governance period and ensure you have sufficient Algotokens in reserve in the participating wallet to cover transaction fees thatwill be required during the Governance Period.

Voting

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How long will the voting period be open for during a Governance period?

Voting periods are generally open for two weeks to give Governors time to review the voting measures and cast their vote. Exact voting window dates will be shared for each Governance period.

Will there be a platform where we can closely evaluate the list of tasks before we vote?

The Foundation will submit the list of tasks to the Governors every quarter, providing the Governors in advance with all the available background needed to allow informed decision-making by the Governors.This is available on the Governance web portal.

Please note if you plan to participate in Community Governance through an integrated wallet you will be able to use your wallet to sign up and participate. In this case, you won’t need to use the webportal.

Is it required or recommended that a person have any specific knowledge or skills to serve as a Governor? I would like to participate, but I'm concerned that issues I would be asked to vote upon will be way over my head.

The type of topics will be wide ranging and we are not looking for all Governors to be familiar with all topics. This is why the delegation of votes is beneficial especially on topics where you are not as familiar.

Will Algorand Foundation itself vote in Community Governance?

The Foundation will not vote or earn rewards in Community Governance. Its only role will be to set up the voting options and indicate its favorite option. Governors that want to do so will be allowed to opt to endorse automatically the Foundation’s preferred choice, but no Algo controlled by the Foundation will be committed to governance.

Can we choose to take the voting advice of the Foundation?

Yes. The Foundation will offer advice on each Governance vote and Governors can choose if they wish to follow the Foundation’s advice and vote accordingly.

Will the voting options be “Yes”, “No”, “Abstain” or how will the voting options be presented for Community Governance?

We are committed to making Governance as easy and straightforward a process as possible. We expect voting options to besimple such as:

  • Options Yes, No, or Vote with Foundation
  • Option A, Option B, or Vote with Foundation.

There will not be an option to abstain from voting. To maintain eligibility and to claim Governance rewards, each Governor must vote in each Governance Period and maintain their committed Algo balance throughout each Governance Period.

Please note the web portal will facilitate a checkbox to vote with the Foundation’s recommendations.  

What is the threshold for yes to pass, 51%?

Yes, this is the expectation for simple 2 answer questions. For >2 answer questions, we may examine allowing the highest vote choice to prevail. This is an example of a governance decision that will be first put to the community to decide.

How many votes will be required within a Governance Period?

For the first two periods of Algorand Community Governance, there was one vote related to Governance Rewards. The third period of Algorand Community Governance had two voting measures. Please note the Algorand Foundation will share voting measures for subsequent periods in advance of the voting window opening in the respective governance period.

Rewards

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What are the requirements to be eligible for Governance Rewards?

Governors MUST maintain their committed Algo balance throughout each full 3-month period. In other words, Governors cannot move the amount of Algo committed in the designated wallet for the entire period. In addition, they must participate in all the votes during that period.

In order to commit Algo as a Governor does one simply need to maintain a certain balance in the Algo Wallet? What is the minimum amount of Algo to be delegated as a Governor?

In terms of a minimum commitment, 1 committed Algo equals 1 vote.Regarding the balance, you need to maintain the balance amount of Algo you committed to the governance period. For example, if you commit 100 Algo to Governance you must maintain at least 100 Algo throughout the Governance period. It is NOT advisable to commit 100% of your Algo balance in the walletto the governance program, since you will need to use a little of it as transaction fees for the voting transactions. It is recommended to leave at least one Algo uncommitted in the account

How are Community Governance Rewards managed/distributed each governance period?

Governing wallets that participated in the vote and maintained their committed number of Algos for the full governance period will receive their distributed rewards at the end of the relevant governance period. Governors who miss a vote, or fail to maintain their committed number of Algos during anypoint of time in the relevant governance period, will not be entitled to their rewards for that governance period. The Governance Reward Distribution for the first Governance period for eligible Governors will be distributed automatically within a week of the period ending.

At the end of the Governance period can I spend/use the rewards earned?

Yes, earned rewards can be spent/used as you wish.

Are the rewards you receive at the end of each governance quarter based on the Algos you commit at the start of the quarter or is it subject to change if you add more to your commitment throughout the quarter? Which leads to the question, can you add to your commitment after your initial commitment?

Your rewards will be based on what you commit at the beginning of each Governance period. What you commit at the beginning is the measure of your commitment to Governance. You can add Algos to yourgovernance account beyond the committed level, but they will not be counted as governing stake and you will not receive rewards for them

Do I need to recommit anew for every Governance period?

Yes.

What is the commitment period which is required to earn Community Governance Rewards?

Governors serve for a 3-month governance period at a time, committing a fixed amount of Algos for this said period.Governors must ensure they participate in all votes and maintain their committed number of Algos for the entire governance period in order to claim their rewards at the end of the governance period.

Why do I need to commit Algos to participate?

Governors have to commit Algos to show they are willing to put skin in the game and align their incentives to those of the community. Additionally, Algorand is a proof-of-stake blockchain and the governance voting power will be proportional to the committed stake in governance. (1 Committed Algo = 1 Vote)

What is the Governance Rewards Rate for each governance period?

The rewards rate will vary per period. This will be determined by the number of committed Algos, and computed as the ratio of the total Algos being committed against the total reward pool for that period, which for now is the amount budgeted for Rewards in the Long Term Algo Dynamics page. An overview of examples on how reward rates would be calculated is available here.

How much profit should I expect to make from Community Governance?

The rewards claimed will be proportional to the number of ALGO tokens committed to Community Governance and the rewards pool for each period. We have shared an overview of potential rewards based on levels of Algo commitment here.

During the governance period, are the Algos committed by the Governors locked?

No. However, Governors who fail to maintain the required balance '"committed Algos" at any point of time during the governance period will not be entitled to claim their rewards.

At the end of a quarter, can I choose to not receive the rewards yet?

No. The Governance Rewards due for each period will be automatically delivered into eligible wallets during each Governance rewards distribution period. The Governance Reward distribution will be within a week of the period ending.

Can Governance Rewards earned in a period be committed to the next Governance Period?

As a result of community feedback, we have adjusted the timing of the governance commitment periods to enable Governors to commit Algo inclusive of their Governance Rewards, distributed at the end of the current Governance Period, to the next Governance Period. This will be standard practice for all future periods.

xGovs

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What is an XGovernor?

An XGovernor is a governor that commits their Algo stake for a period of one year or more.

What are the rights and obligations of XGovernors?

A governor is required to follow the rules of the community to prove its commitment to the Algorand ecosystem for the Governance term.

This gives a governor the right to vote on all proposed measures, and receive rewards at the end of the governance period if the governor has expressed valid votes for all measures, whatever the choice.

How will the community have influence over the issues that are voted on during each Governance period?

Yes. The xGov voting measure from the third period of Community Governance passed with 99% support from governors. We will be sharing more information in due course on how this will be facilitated.

Will Governance control what DAO’s, DApp’s, and/or third parties get integrated into the Algoand ecosystem?

The Algorand network is a public,permissionless and decentralized Blockchain network and is therefore available for anybody to build on without permission or restriction. We expect governance to control or guide the distribution of grant funding to applicant projects,who have submitted formal funding requests.

If you have a question which we do not feature on our FAQs please submit through the form below.

Proposals

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