Algorand (ALGO) Tokenomics
Algorand (ALGO) Information
Algorand is a public, permissionless, pure proof of stake blockchain that ensures full participation, protection and speed within a truly decentralized network. Algorand removes technical barriers that have undermined mainstream blockchain adoption: decentralization, scale, and security. Algorand is built by a team with deep roots in academic theory and science, led by Turing award winner Silvio Micali who has dedicated his career to pioneering research in the field of cryptography.
Algorand (ALGO) Tokenomics & Price Analysis
Explore key tokenomics and price data for Algorand (ALGO), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
In-Depth Token Structure of Algorand (ALGO)
Dive deeper into how ALGO tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
Algorand’s token economics are designed to support a decentralized, secure, and scalable blockchain ecosystem. Below is a comprehensive analysis of its issuance, allocation, usage, incentive, locking, and unlocking mechanisms, with supporting tables for clarity.
1. Issuance Mechanism
- Total Supply: The maximum supply of ALGO is capped at 10 billion tokens.
- Initial Distribution: At genesis, a portion of tokens was unlocked, with the remainder subject to various vesting schedules.
- Issuance Schedules:
- Some allocations (e.g., Public Sale, Team, Foundation, and Investors) were 100% unlocked at the Token Generation Event (TGE).
- Others (e.g., End User Grant, Participation Rewards, Node Running Mining) followed linear vesting schedules over months or years.
Issuance Schedule Table
| Allocation Recipient | Issuance Mechanism Description | Start Date | End Date | Amount Unlocked per Period | Unlock Period Granularity |
|---|---|---|---|---|---|
| End User Grant | 1.73% unlocked at TGE, 98.27% linear monthly vesting over 57 months | 2019-07-16 | 2024-03-16 | 4,310,088 | Monthly |
| Participation Rewards | 0.91% unlocked at TGE, 99.09% linear monthly vesting over 9 years | 2019-06-17 | 2028-06-16 | 527,395 | Daily |
| Node Running Mining | 4.17% unlocked at TGE, 95.83% linear daily vesting over 2 years | 2019-06-17 | 2021-06-16 | 3,277,360 | Daily |
| Team, Foundation, Investors | 100% unlocked at TGE | 2019-06-16 | 2019-06-16 | 2,500,000,000 | Instant |
| Public Sale | 100% unlocked at TGE | 2019-06-16 | 2019-06-16 | 3,000,000,000 | Instant |
2. Allocation Mechanism
- Major Allocations:
- Public Sale: 3 billion ALGO
- Node Running Mining: 2.5 billion ALGO
- Team, Foundation, and Investors: 2.5 billion ALGO
- Participation Rewards: ~1.75 billion ALGO
- End User Grant: 250 million ALGO
Allocation Table
| Allocation Recipient | Total Allocated Amount (ALGO) |
|---|---|
| Public Sale | 3,000,000,000 |
| Node Running Mining | 2,500,000,000 |
| Team, Foundation, Investors | 2,500,000,000 |
| Participation Rewards | 1,750,000,000 |
| End User Grant | 250,000,000 |
3. Usage and Incentive Mechanism
- Governance: ALGO holders can participate in decentralized governance by committing tokens for three-month cycles. Governors vote on proposals and receive rewards proportional to their staked amount.
- Staking/Participation Rewards:
- Previously, ALGO holders received participation rewards simply by holding tokens in eligible wallets. This was replaced by governance rewards in May 2022.
- Governance rewards are variable, with APYs historically ranging from 10.02% to 14.05%.
- No Slashing: Algorand’s Pure Proof-of-Stake (PPoS) does not penalize users via slashing.
4. Locking Mechanism
- Governance Locking: To participate in governance, users must commit (effectively lock) their ALGO for the duration of a governance cycle (three months). However, the protocol does not enforce a technical lock; users must maintain their committed balance to remain eligible for rewards.
- Vesting Schedules: Many allocations are subject to linear vesting, as detailed above.
5. Unlocking Time
- Unlocking Events:
- Public Sale and Team/Investors allocations were fully unlocked at TGE.
- End User Grant: 1.73% at TGE, remainder over 57 months.
- Participation Rewards: 0.91% at TGE, remainder over 9 years.
- Node Running Mining: 4.17% at TGE, remainder over 2 years.
Unlocking Table (Sample Events)
| Unlock Date | Unlocked Amount (ALGO) | % Impact on Circulating Supply | Locking Mechanism | Allocation Description |
|---|---|---|---|---|
| 2019-06-16 | 5,624,500,000 | 64.71% | End User Grant | 1.73% at TGE, 98.27% linear monthly vesting over 57 months |
| 2019-06-16 | 5,624,500,000 | 64.71% | Participation Rewards | 0.91% at TGE, 99.09% linear monthly vesting over 9 years |
| 2019-06-16 | 5,624,500,000 | 64.71% | Public Sale | 100% unlocked at TGE |
| 2019-06-16 | 5,624,500,000 | 64.71% | Node Running Mining | 4.17% at TGE, 95.83% linear daily vesting over 2 years |
| 2019-06-16 | 5,624,500,000 | 64.71% | Team, Foundation, Investors | 100% unlocked at TGE |
6. Additional Notes
- Ecosystem Support: 25 billion ALGO (12.5% of max supply) was locked and distributed over 10 years at ~10% per year.
- Governance Process: Operates in cycles (three months each) with sign-up, voting, and rewards phases.
- Rewards Source: Governance and community rewards are funded from a dedicated allocation (~1.75 billion ALGO).
Summary Table
| Mechanism | Details |
|---|---|
| Issuance | Mix of instant unlock and linear vesting (monthly/daily) over 2–9 years |
| Allocation | Public Sale, Node Mining, Team/Investors, Participation Rewards, End User Grant |
| Usage/Incentive | Governance participation, staking rewards, no slashing, decentralized voting |
| Locking | Governance: soft lock (must maintain balance); vesting: enforced by schedule |
| Unlocking | TGE for some, linear vesting for others; major unlocks completed by 2028 |
Algorand’s token economics are structured to incentivize long-term participation, decentralized governance, and ecosystem growth, with a transparent and predictable unlocking schedule and no punitive slashing for participants.
Algorand (ALGO) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of Algorand (ALGO) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of ALGO tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many ALGO tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand ALGO's tokenomics, explore ALGO token's live price!
How to Buy ALGO
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Algorand (ALGO) Price History
Analyzing the price history of ALGO helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
ALGO Price Prediction
Want to know where ALGO might be heading? Our ALGO price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
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Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
Buy Algorand (ALGO)
Amount
1 ALGO = 0.2419 USD