Transparency Report April 1, 2024 - June 30, 2024

Message from the CFO

Welcome to the Q2 2024 Algorand Foundation Transparency Report. This report marks an important milestone as we celebrate Algorand's five-year anniversary! I’d like to offer congratulations and thanks to you all for helping us reach this goal.

In June, Algorand clocked 2 billion total transactions since it went live five years ago. It reached an all-time high of 240 million transactions per month, and achieved a record of 5,716 transactions per second (TPS), ranking it among the top three blockchains by max recorded TPS.

Also in June, we held our third Decipher event, this year in Barcelona. The two-day event focused on the products and businesses building across the Algorand ecosystem. It was also a great opportunity for me to spend time with you in person, to hear your feedback, and to understand what more we can do to help and support you.

After months of discussion and hard work, the partnerships team announced that USDCa is now enabled on Coinbase. We also announced Algorand’s integration with Nansen, an industry-leading analytics provider. Both of these partnerships reduce friction points for projects and make Algorand more visible and accessible.

Other achievements this quarter worth noting: Labtrace announced the completion of the first medical research study using its Algorand-based data authentication system, and we completed our Algorand Global Hackathon. Congratulations to IgoProtect for winning the grand prize.

In other metrics, total stablecoin value (USD) increased by 15%, with USDCa representing 32% of the increase. Monthly active users (MAUs) increased by over 11%, and, with Vesta Equity being added, real-world assets reported on DefiLlama increased by 55% during the quarter. Further information about these metrics can be found in the Appendix.

As ever, please feel free to reach out to askthecfo@algorand.foundation with any questions.

Harpal Singh
CFO, Algorand Foundation

Foundation Holdings & Reconciliation

At the end of the reporting period, the Foundation had a balance of 1,789M ALGO. This can be verified on-chain via our account addresses, published on the Algorand website.

The report that follows explains both ALGO and USD movements during the period, organized by the major categories of Foundation responsibilities, and broken down into three areas:

• Spending allocated by the community towards incentives.
• Direct spending on ecosystem development via Foundation equity/token investments, loans, investments in third-party funds, etc.
• Foundation funds used to support and grow the Algorand ecosystem.

Where applicable, references to USD include fiat and stablecoins. Investments are shown at cost, and those in ALGO are translated using the spot price at the time of the transaction.

Balance Sheet Holdings (‘000)

Foundation Holdings Algo Reconciliation (‘000)

Structured Selling

The Foundation sold 58M ALGO during the reported period through structured selling. The Foundation’s structured selling is performed out of dedicated, publicly disclosed wallets on a rules-based approach and abides by the following guidelines:

• Daily sales are limited to the lesser of two constraints:
  • A fixed daily amount, based on projected medium-term volumes.
  • There is a 10% price drop within 24 hours.
  • A small percentage of estimated total market volume on a given day.
• Sales are automatically halted if:

Spend Allocated by the Community

During the quarter, community-allocated spend amounted to 27.574M ALGO, primarily distributed via governance rewards and incentives. The table below shows the breakdown of rewards rolled forward from prior governance periods, those allocated and distributed in the current governance period, and those rolled forward to future governance periods.

Please note that, given the structure of the current Algorand governance program, there is a lag between community voting decisions and the Foundation’s release of funds.

The Foundation distributed a total of 21.325M ALGO via governance and DeFi rewards for Governance Period 10 (GP10).

The xGov community funding pilot distributed 585K ALGO, of which 300K was converted to USDC at the time of payment. Information on the grantees can be found on the xGov Portal. The remaining 666K ALGO will be released upon completion of agreed deliverables and reported in subsequent transparency reports.

The Foundation launched a “Call for Algorand Creators” to commission 10 NFTs for a special edition Decipher-themed artwork. 50K ALGO from the Algorand NFT collections fund was distributed to these artists.

The governors who opted into xGov in GP10 were eligible to earn a potential 525K ALGO in total, which the Foundation will distribute to those governors still in the program after the one-year lock-up period. This line item is shown in the table as xGov Term Pool 4.

The community voted to distribute 5.4M ALGO to targeted DeFi rewards, and 178K ALGO via NFT rewards, for a total of 5.6M ALGO in GP11. The breakdown of distribution by project is below.

Investments, Grants & Loans

Loans Made & Repaid

The Foundation made a loan to Pera Algo Wallet in Q2 in accordance with its overall support for the wallet. The Foundation purchased 1M EURD in preparation for a potential trade-in of Algorand’s first tokenized money market fund (Abrdn Liquidity Fund (Lux) – Euro Fund).

Technical Updates

Algokit

Several substantial products were released or enhanced during the quarter:

• Lora (Live On-chain Resource Analyzer) is a new transaction visualizer that helps developers understand on-chain actions and aids with debugging.
• Python unit testing allows developers to write unit tests for Python smart contracts. Unit tests are one of the most fundamental methods of testing developer code prior to deployment.
• API interface for Algorand Box Storage can now be used to create, read, and manipulate boxes (storage) in Python.
• The subscriber library in Typescript has been updated and is now ready for broad use. It enables users to track, parse, and react to on-chain events in real-time.

Engineering

The engineering team focused on critical protocols and tools development to fill gaps and solve challenges for dApps across the Algorand ecosystem. In Q2, several of these solutions were released:

• xHD Wallets introduced the ability to have a single 24-word mnemonic and deterministically generate N accounts with N addresses underneath each account. The implementation is based on well-established industry standards, including BIP39, BIP32-ed25519, and BIP44. This implementation also enables the agreement of symmetric secrets, which gives users the ability to do end-to-end encryption between any two Algorand accounts.
• Liquid Auth is now available on Android and Web. This decentralized solution replaces the need for applications to rely on WalletConnect and uses common, open standards to establish P2P authenticated communications between wallets and applications.
• Algorand DID Method (did:algo) is now complete and part of the Decentralized Identity Foundation’s resolver. It is the primary building block for establishing a digital, decentralized identity on Algorand in a way that is compliant with current W3C identity standards.

Pera Algo Wallet and Pera Explorer

Pera launched a new public API that returns detailed ASA information to anyone building in the ecosystem. It is the team’s first step in building public goods for the ecosystem, enabling easy access to important information for developers on Algorand.

The Pera team also laid crucial groundwork in the wallet for important new updates, including heavy refactoring to the data-storage layer in preparation for xHD wallets and the implementation of ARC-59. Last, the Pera team continued to push important features to Pera Explorer, including transaction filtering, updated charts for portfolio tracking, and improvements to support NFTs. Pera also made meaningful improvements to the indexer.

Notable Activities & Achievements

Partnerships

The partnerships team focused on expanding access to the Algorand ecosystem and increasing its reach. This quarter:

• Coinbase enabled deposit and withdrawal support for USDCa.
• The Foundation announced a partnership with Coinbase to participate in its Coinbase Quests program.
• The Foundation finalized partnerships with AlchemyPay (a leading fiat on/off ramp) and Coinstore (a centralized exchange) to integrate USDCa.
• The Foundation entered into a partnership with Nansen to integrate Algorand into their platform, making ecosystem data more available to the public.
• The Foundation also announced a partnership with NFT Inspect which enables the Web3 community to discover Algorand NFTs, simply. Tether announced it would no longer support the minting of new USDTa in June (existing USDTa in circulation will continue to be supported). With only $17M USDTa currently in circulation, the impact of Tether’s decision is not expected to be significant.

Business Development

The business development team helped several companies accelerate the deployment of their respective applications and solutions on Algorand in Q2:

• Conio, a leading digital assets custody provider, graduated from the Bank of Italy’s sandbox regime in Q1 and is now offering participating financial institutions a regulated EUR token service that will enable banks to issue tokenized commercial bank deposits. Conio is working with enterprise clients and merchants on various use cases.
• Labtrace, a spin-off of King’s College London that provides a tamper-proof platform for clinical trials, has achieved product-market fit and signed its first commercial contracts (with GSK, the Gates Foundation, and others) this quarter. Labtrace has based its SDK on Algorand.
• CDP Ventures, the VC arm of Cassa Depositi e Prestiti, the Italian public lender, partnered with Algorand (and others, including Microsoft) to provide expertise and support to companies in its tech-focused incubator program.

Impact

Payments

The Foundation assembled the Cash-Based Assistance in Humanitarian Crises Advisory Council. The Council intends to scale solutions that benefit recipients of assistance, their donors, and others engaged in the transmission and receipt of resources. Members include senior leaders from Circle, WorldPay, United Nations World Food Programme (WFP), United Nations Development Program (UNDP), HesabPay, MercyCorps Ventures, and more. The council began meeting virtually this quarter and came together in person at the Decipher conference. That meeting resulted in a concrete action plan to help scale blockchain-based payments in Afghanistan and Syria.

Education and Outreach

The beta run of the Algorand Blockchain Academy, in collaboration with UNDP, concluded in May. Six UN organizations participated in the 12-week training course, which included over 18 hours of live and recorded content. The Academy will be rolled out UN-wide later this year following the positive feedback.

Ecosystem Support

The ecosystem team worked closely with projects to strengthen the availability and offerings of infrastructure and tooling platforms: Protofire became the fourth RPC provider, AlgoNode released a mainnet database on Google BigQuery, and BlockStalker launched full real-time streaming support. All of these advancements are crucial for builders in the ecosystem.

Developer Programs & Hackathons

During the quarter, the team hosted a dozen educational developer bootcamps, which fed into the flagship Algorand Global Hackathon: Change the Game. The bootcamps had over 2,000 participants, while the Hackathon itself had 595 registrations and over 60 final submissions. Almost half of the winning hackathon projects included team members who had participated in the bootcamps. The grand prize was awarded to IgoProtect, a decentralized peer-to-peer consensus delegation platform.

Global Geographies

India

The Foundation continued its focus on blockchain education and training in India, specifically targeting student and developer communities and established Web2 companies.

• Algorand Learning Weekends: 55 Algorand Blockchain Club leads across India completed four two-day virtual trainings. The trainings focused on how to deliver Introduction to Blockchain sessions on their campuses and assist fellow students in setting up Algorand developer environments.
• NASSCOM FutureSkills Prime: Algorand-specific training modules went live on the NASSCOM platform. Several hundred students from across India have begun their Algorand training journey.
• Faculty Development Program (FDP): The India team held its first FDP of the year at BMS College of Engineering in Bengaluru following the success of these programs in 2023. The three-day program provided blockchain curriculum content for faculty to use in their classrooms and was attended by 50+ computer science and engineering professors from nearly 30 top universities in the region.
• 'Transitioning from Web2 to Web3’ workshops: The team hosted workshops targeted at business heads from various verticals, exposing participants to real-world blockchain use cases built on Algorand.
• Startup Lab technical webinars: The team launched a series of hands-on webinars for lead developers at T-Hub Startup Lab companies, tackling key issues such as custodial wallets, smart contracts, and integrating Web2 front ends with Web3 back ends.

APAC

Onboarding developers was the priority in the Asia-Pacific region, with more than 20 dev-focused workshops and meetups in Q2. In June, the APAC team launched a custom Vietnamese “zero to hero” Python curriculum for an 8-week bootcamp, followed by a local incubation program with regional partners VMO Blockwise and GFI Group.

Nigeria

The Nigeria team launched the #PythonMay initiative, which consisted of five sessions (four online, one in-person) to onboard Python developers to Algorand. More than 200 developers attended, resulting in 14 submissions from Nigeria to the Algorand Global Hackathon: Change the Game (more than any other region).

Decipher

The Foundation hosted the third edition of Decipher in Barcelona from June 26-27. This iteration of the conference was strategically designed for active Algorand builders and community. All facets of the event highlighted the developers, entrepreneurs, and community leaders building on Algorand, creating an environment where attendees could forge connections, gain feedback on projects, and chart their paths forward. The ecosystem success team created programming that gave builders technical and business knowledge for success. At the event, the main stage panels and the ecosystem showcase featured 30+ teams across DeFi, RWA, NFTs, gaming, identity, impact, tooling, and supply chain. Several hundred people attended Decipher in person, including more than 25 VCs, and thousands of additional people from across the globe tuned in to live-streamed sessions. In the post-conference survey, 95% of attendees reported being ‘extremely or very satisfied’ with the event. Furthermore, 83% of attendees said this statement was ‘extremely or very applicable’ to their experience: "I am leaving Decipher 2024 with new connections or ideas that I can apply to my project or business.”

Other Events

The Foundation participated in Pycon US, a multi-day gathering for Python developers, in May. Several members of the developer relations team attended to present workshops and host a booth, driving attention to Python on Algorand and the AlgoKit tool suite.

Marketing & Communications

Website / Brand

We launched a new online home for Algorand this quarter. Most importantly, the new website serves as a window into the entire Algorand ecosystem and a one-stop-shop for information about all things Algorand, not just the Foundation. It has a clearly defined navigation that prioritizes key resources about the technology, developer initiatives, use cases, and ecosystem news. The changes are directly integrated with the Foundation’s existing CRM, which makes it easier to maintain and analyze performance.

We also did a complete brand refresh and launch this quarter. The brand refresh maintains iconic elements, like the Algorand logo, but introduces more modern, scalable components, including an expanded color palette and a design system centered around Algorand technology and its real-world impact. Both the new website and the brand assets we introduced at Decipher reflect our new branding.

The brand is open-sourced in order to provide ecosystem builders, companies, and community with creative assets, templates, and self-service design tools to support their own needs. These can be found on the brand hub page on the website.

Social Media

The social media team launched a community-driven commercial inspired by GovernorHat’s script in May. Algorand community members starred in the ad, and it featured a cameo from Anthony Scaramucci. The video reached 12M+ total impressions and drove engagement from notable voices across the blockchain industry.

The team also spearheaded important cross-chain conversations, including an X Space between Algorand, Cardano, Tezos, Bitcoin Cash, and Ethereum Classic, which reached thousands of organic listeners. To onboard users from the other chains to Algorand during the event, the Foundation partnered with artist @MaarsComics to mint 1,000 NFT collectibles, which sold out.

Follower growth across social channels in Q2 2024 was as follows:

• On X, AlgoFoundation grew by 3,000 net followers
• On YouTube, AlgoDevs grew by 54%, amassing 24,000 subscribers in the period
• On LinkedIn, Algorand Foundation grew by 2,000 net followers

Appendix: Key Activity Indicators

TVL in Algo & USD for the Last 12 Months

The spike in February 2024 is partially due to an error in Humble DeFi reporting on DefiLlama.

TVL Breakdown by Project as of June 30, 2024

RWA TVL in USD in the Last 12 Month per DefiLlama

Contributors: Lofty, Meld Gold & Vesta Equity Source: https://defillama.com/protocols/RWA/Algorand

Number of New Accounts Opened & Number of Monthly Active Users in the Last 12 Months

Number of On-Chain Transactions in the Last 12 Month

Total number of on-chain transactions from inception to June 30, 2024, is 2.1B

NFT Sales in Algo & USD in the Last 12 Months

Value of Stablecoins on the Algorand Blockchain over the Last 12 Months

Disclaimers

The information provided herein is for informational purposes only and should not be construed as financial, legal, or investment advice. Algorand Foundation and our affiliates do not recommend that Algo or any digital assets be bought, sold, swapped, staked, or held by you. It is the responsibility of any person who accesses the information herein to observe all applicable laws and regulations of their relevant jurisdiction. By proceeding to obtain the information, you are representing and warranting that all the applicable laws and regulations of your jurisdiction allow you to access such information. Algorand Foundation and our affiliates make no representations or warranties of any kind, express or implied, regarding (i) the accuracy, completeness, or reliability of the information contained herein; (ii) the third-party services named in this report, the information contained on their websites, the assets available through them, or the suitability, privacy or security of their products and services. Algorand Foundation and our affiliates assume no liability for any losses or damages that may result from reliance on the information contained in this report or damages arising out of or relating to third-party services, including loss for assets trading through such third-party services.

This report may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements in this report represent the judgment of Algorand Foundation and our affiliates as of the date of the report. The foundation does not undertake any obligation to update or revise any forward-looking statement to reflect new information or future events. You should not place undue reliance on forward-looking statements contained in this report.