Algorand is a decentralized blockchain network that aims to solve the blockchain trilemma by providing a secure, scalable, and fully decentralized network. Furthermore, because the source code of the Algorand blockchain is entirely open source and permissionless, the network is designed to be accessible and provide an ideal environment for developers to deploy decentralized applications (DApps) rapidly.
The Algorand blockchain is secured by an innovative Pure-Proof-of-Stake (PPoS) consensus mechanism. This gives Algorand the necessary processing power to execute over 1,000 transactions per second. Moreover, the Algorand network benefits from low gas fees, making it user-friendly.
One of the unique benefits of Algorand over other blockchains is that ALGO holders can earn rewards without needing to stake their ALGO tokens due to its unique consensus mechanism. Instead, rewards are automatically distributed to holders via the chain's PPoS consensus model. Hence, many investors consider Algorand an excellent blockchain for the mass adoption of cryptocurrency.
ALGO is the utility and governance token of the Algorand blockchain. ALGO is required to pay gas fees when completing on-chain transactions and is used to vote on important governance proposals regarding the development of the Algorand blockchain.
In 2020, it was announced that the Marshallese sovereign (SOV), which could become the first state-backed digital currency to enter circulation, would be built using the Algorand protocol. SOV is a blockchain-based currency and the new legal tender of the Republic of the Marshall Islands. SOV could become the first state-backed digital currency to enter circulation and is being built using the Algorand protocol by SFB Technologies.
The current circulating supply of ALGO tokens is approximately 7.07 billion tokens. This represents roughly 70 percent of the total ALGO supply of 10 billion tokens.
The Algorand Foundation holds the remaining ALGO tokens in secure wallets. The Foundation's primary aim is to enable an inclusive and borderless global economy through Algorand's blockchain technology.
1,757.26 million tokens are allocated to community and governance rewards, 1,176.05 million tokens are distributed to ecosystem support, and 363 million tokens are channeled towards foundation endowment.
Seed and presale round investors could sell their ALGO token allocation back to the Algorand Foundation at 90 percent of the initial purchase price. These tokens were then burnt by the team, effectively reducing the supply. This deflationary mechanic was intended to increase token scarcity and drive appreciation to Algorand's price.
In June 2019, via a Dutch auction, Algorand raised over $60 million in the public sale of its native token ALGO. The company sold 25 million tokens in less than 4 hours.
Algorand was founded by Silvio Micali, the co-inventor of probabilistic encryption, zero-knowledge proofs, verifiable random functions, and other protocols that heavily contribute to modern cryptography.
In 2017, Micali founded Algorand, overseeing all research, including theory, security, and crypto finance. He is also the recipient of the Turing Award for computer science, the Gödel Prize for theoretical computer science, and the RSA prize in cryptography.
Since 1983, Micali has been a faculty member at the Massachusetts Institute of Technology (MIT) in the electrical engineering and computer science department. His research interests include cryptography, zero knowledge, pseudorandom generation, secure protocols, mechanism design, and blockchain.
At OKX, we advise you to research any cryptocurrency before investing objectively. Cryptocurrency is deemed a high-risk asset and prone to sharp price movements. Therefore, we ask that you only invest what you are willing to lose.
Furthermore, like all cryptocurrencies, ALGO is volatile and carries investment risks. Therefore, before investing, you should do your own research (DYOR) and evaluate your risk appetite before proceeding.
Before you begin trading with OKX, you need to create an account. To buy ALGO with your preferred fiat, click "Buy with card" under "Buy Crypto" on the top navigation bar. To trade ALGO/USDT, ALGO/USDC, or ALGO/BTC, click "Basic Trading" under "Trade." Then, under the same tab, click "Convert" to convert crypto to ALGO.
Alternatively, visit our new OKX Crypto Calculator. Select ALGO and the desired fiat that you would like to convert to view the estimated live conversion price.