Algorand

**Algorand (ALGO)** is the [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) that is used on the [Algorand](https://iq.wiki/wiki/algorand) [blockchain](https://iq.wiki/wiki/blockchain). It was launched in June 2019, along with the [mainnet](https://iq.wiki/wiki/mainnet) for [Algorand](https://iq.wiki/wiki/algorand). [\[1\]](#cite-id-jnj3naqbz29)[\[3\]](#cite-id-gxbw187tlng)  
$$widget0 [YOUTUBE@VID](XtKTk-ebyQE)$$  
  
# Tokenomics  
  
The [initial coin offering](https://iq.wiki/wiki/initial-coin-offering) (ICO) for ALGO took place on June 16, 2019, at a price of $2.4 per token. ALGO is used to facilitate transactions and reward users who participate in the operation of the [Algorand](https://iq.wiki/wiki/algorand) network. The distribution of rewards occurs around every 10 minutes. It is meant to encourage people to join the Algorand [staking](https://iq.wiki/wiki/staking) platform and smoothen the route to decentralization. Users are not required to lock their coins as part of the block manufacturing and validation process. If they want to earn incentives, they may simply keep ALGO in its official non-custodial wallet, named *MyAlgo Wallet* [\[3\]](#cite-id-gxbw187tlng)[\[6\]](#cite-id-8jlcggwj2k)  
  
At the inception of the Algorand protocol, 10 billion ALGO tokens were created. These tokens are distributed through various channels, including community incentives and support for the ecosystem. The benefits provided to validators for creating blocks are divided and dispersed among all coin holders, rather than being awarded just to block producers, as part of Algorand's unique protocol architecture. [\[4\]](#cite-id-8y0dnplrq14)[\[3\]](#cite-id-gxbw187tlng)  
  
The Algorand Foundation holds a portion of the total ALGO supply, with 1,757.26 million allocated for **community and governance rewards**, 1,176.05 million for **ecosystem support**, and 363 million for the **foundation endowment**. The distribution of ALGO tokens is designed to support the growth and development of the [Algorand](https://iq.wiki/wiki/algorand) network. [\[2\]](#cite-id-xvikg0tahzn)[\[5\]](#cite-id-165ljsabima)  
  
# ![image](https://ipfs.everipedia.org/ipfs/QmckyS9fyt6fpJoVzddZKbywg5rD3kEfDAmDUN7Erdwd9V)Algo Dynamics Model  
  
The Algo Dynamics Model is a system proposed by the Algorand Foundation and designed to run for greater than a 10-year period. The model focuses on programs around ecosystem support, community incentives, decentralization of decision-making, and governance on the Algorand blockchain. A new community rewards system will be central to these programs, offering benefits to participants who commit to participate in the governance of the [Algorand](https://iq.wiki/wiki/algorand) ecosystem and lock their Algos for an extended period of time.[\[7\]](#cite-id-ix59daekg9)  
  
The proposed rewards system and ecosystem support will be funded using unassigned funds from within the 10 billion Algo minted at Genesis and distributed using a decentralized decision-making process. [\[7\]](#cite-id-ix59daekg9)  
  
## Community Rewards  
  
2.5 billion tokens will be initially locked and allocated toward participation rewards to be distributed over approximately 10 years. [Smart contracts](https://iq.wiki/wiki/smart-contract) will be employed to inject the tokens into governance reward mechanisms. These tokens will be given to participants who agree to lock tokens in support of governance, in accordance with [Silvio Micali's](https://iq.wiki/wiki/silvio-micali) Decentralized Governance proposal. [\[7\]](#cite-id-ix59daekg9)[\[8\]](#cite-id-wgc5ty1vok9)  
  
## Ecosystem Support  
  
Approximately 1.25 billion tokens are being allocated for extended ecosystem support and will be locked in a [smart contract](https://iq.wiki/wiki/smart-contract). The tokens will be unlocked periodically over a period of no less than 10 years, with no more than 200 million unlocked in any given year. Unlocked tokens can be used to support grants, strategic initiatives, and R&D projects, brought forward by the Foundation or by other partnering entities for approval.[\[7\]](#cite-id-ix59daekg9)  
  
The Foundation’s proposal for allocation of ecosystem support tokens, across different types of entities, is described in Massimo Morini’s Algo Dynamics and will be implemented with community involvement as proposed by [Silvio Micali](https://iq.wiki/wiki/silvio-micali).[\[8\]](#cite-id-wgc5ty1vok9) For any tokens unused in a given period, they will be re-locked and set to unlock monthly, following the initial 10-year period. [\[7\]](#cite-id-ix59daekg9)

ALGO was launched in June 16, 2019, along with the mainnet for Algorand

Date Founded

Silvio Micali

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Algorand (ALGO) is a cryptocurrency on the Algorand blockchain, used for transactions and rewarding network participants, with 10 billion tokens created at ince...

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