Algorand (ALGO) -rahakkeen tokenomiikka

The Algorand token (ALGO) is the native asset of the Algorand blockchain, designed to facilitate network operations, security, and decentralized governance. The tokenomics structure is built around a fixed maximum supply and a multi-faceted allocation and incentive system.

Issuance Mechanism

The ALGO token has a maximum supply of 10 billion ALGO. The issuance mechanism is based on this fixed supply, with tokens being released over time according to a predetermined schedule and allocation plan.

Historically, Algorand utilized a Participation Rewards mechanism, which automatically credited ALGO to wallets holding at least one ALGO. This mechanism was allocated 3 billion ALGO (30% of the maximum supply) and was originally planned to distribute until 2030. However, this system was replaced in May 2022 by the current Governance Rewards mechanism.

Allocation Mechanism

The initial allocation of the 10 billion ALGO maximum supply was distributed across several key stakeholders and incentive programs.

As of July 12, 2023, the top ten wallets cumulatively held approximately 2.15 billion ALGO, representing about 21.50% of the maximum token supply. This includes significant holdings by Binance exchange wallets and Algorand Foundation addresses dedicated to Ecosystem Support and Community & Governance Rewards.

Usage and Incentive Mechanism

The ALGO token serves three primary utility functions within the Algorand ecosystem:

1. Transaction Fees: ALGO is used to pay transaction fees on the network. The minimum fee is set at 0.001 ALGO, with final fees determined by network traffic and transaction size.
2. Consensus Participation: ALGO is required to participate in the network's Pure Proof-of-Stake consensus mechanism.
3. Protocol Governance: ALGO is the tool for decentralized governance, enabling tokenholders to become "governors" and vote on proposals.

Governance and Rewards

The current primary incentive mechanism is Governance Rewards, which replaced the previous Participation Rewards system in May 2022.

• Governance Process: The governance program operates in three-month cycles, consisting of a sign-up, voting, and rewards phase.
• Governor Eligibility: Tokenholders must commit a specific amount of ALGO for the three-month period. To remain eligible for rewards, governors must:
  1. Maintain a balance above the committed ALGO amount for the entire period.
  2. Cast votes on the measures proposed by the Algorand Foundation.
• Reward Source and Rate: Governance rewards are sourced from the ~1.75 billion ALGO allocated to "Community & Governance Rewards." The Annual Percentage Yields (APYs) for governance rewards have been variable in past cycles, ranging between 10.02% and 14.05%.
• xGov Program: A parallel governance program, xGov, is being implemented to foster early-stage projects and enhance community engagement, with proposals submitted on GitHub.

Locking Mechanism and Unlocking Schedule

Locking Mechanism

The governance mechanism involves a commitment of ALGO tokens, which is often termed a "stake." However, unlike some staking models, this mechanism does not require a user to lock assets in a smart contract. To become a governor, a user must declare the committed amount and sign a transaction to signify their commitment. The primary requirement is maintaining the committed balance throughout the three-month governance period.

Unlocking Time

The Algorand token allocation includes several large pools subject to vesting and unlocking schedules, such as the 1.25 billion ALGO allocated for Ecosystem Support, which is "locked and distributed over 10 years at the rate of approximately 10% per year."

Based on recent data, Algorand (ALGO) has a consistent daily unlock schedule for a portion of its supply. These daily unlocks are relatively small in terms of circulating supply impact.

The following table details the upcoming daily unlock events for ALGO:

The data shows that 527,395 ALGO are scheduled to unlock daily from November 11, 2025, through at least February 18, 2026. This consistent daily unlock represents a minimal impact of 0.01% on the circulating supply each day.