Nov 06, 2019

Algorand Transparency Report: June 19 - Nov 6, 2019

By: Algorand

Disclaimer: All tokens belonging to Algorand Inc. and it subsidiaries are held by its Cayman Islands subsidiary Algorand Cayman SEZC (referred to as “Algorand” in this report), and all transactions related to the Algo are made by Algorand with non-US counterparties.

In an effort to provide full transparency on the actions of Algorand since the network launch on June 19, 2019, we are providing the following details on token holdings and use of tokens to date.

Since launch, we have updated our wallet lists on an ongoing basis, and will continue to do so as a standard practice. We will also provide transparency reports on a quarterly basis going forward. To that end, this is our first transparency report, and covers the period from launch on June 19 through November 6, 2019.

This is in line with our current statement of use and wallet addresses that can be found here.

We have not sold and have no plans to sell tokens on the secondary market at this time, and reiterate our commitment that in advance of any selling of tokens, we will publicly share a structured selling plan with the community.

As of November 6th, Algorand beneficially owns 2.027B Algos (up from 2B at launch). Of those, 1.866B are held in the wallets we have publicly shared, and for the remaining 161M Algorand maintains legal ownership but not physical custody (as described below).

Use of tokens to date

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: 111.2M

  1. Initial Investment in Algo Capital: 100M tokens were contributed to Algo Capital at launch. Algo Capital is unrelated organizationally to Algorand Inc. or its subsidiaries. These tokens are permanently held and remain locked by the fund while the value accrues to all fund participants. Confirmation of their holdings and their corresponding transparency statement can be found here.
  2. Equity Investments: Approximately 8.4M Algos were used to invest in ecosystem partners.
  3. Market Development: Approximately 2.2M Algos were used to build global awareness and promote Algorand through both technical and marketing partnerships.
  4. Application Development: Approximately 570K Algos were used to pay developers, vendors, and contractors for applications and services benefiting all members of the Algorand ecosystem including wallets, custody solutions, etc.

Development of the financial ecosystem by encouraging growth and liquidity through support of partner solutions including lending, staking, and market making.  

Total Algos: 71M

  1. Lending: Approximately 52.5M Algos have been loaned and are held as collateral with 3rd parties to assist in the creation of lending markets. These tokens will be returned to Algorand.
  2. Market Making: Approximately 18.5M tokens have been loaned to various market makers to support exchange liquidity and create orderly markets. The Algo is currently traded on 27 exchanges across over 60 trading pairs at those exchanges. These tokens will be returned to Algorand at the completion of their respective engagements.
  3. Miscellaneous: Approximately 80,000 Algos were used for other purposes including product testing, payment of transaction fees, etc.

All other token movements represent internal transfers between wallets for rebalancing, to ensure that participation remains below the 49% threshold at all times. This threshold and our focus on responsible decentralization is described in more detail here.