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<p>The Algorand Foundation has paused Project King Safety indefinitely, shelving a planned overhaul of the network's fee and rewards model for <a href="https://x.com/search?q=%24ALGO&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$ALGO</a>. Ideas to raise the supply cap, lift the minimum transaction fee and capture MEV are no longer under consideration, while staking rewards remain in place through January 2028.</p>
<p>The update came in a community post from <a href="https://x.com/AlgoFoundation" rel="noopener noreferrer nofollow">@AlgoFoundation</a>. <cite>It said that under new leadership, Algorand will focus on building a sustainable, revenue-generating network model.</cite></p>
<h2 id="what-changes-for-algorand-governance-and-grants">What Changes for Algorand Governance and Grants</h2>
<p>The Foundation is also scaling back several community and governance functions. <cite>The xGov grant program will be suspended indefinitely from Dec. 6, while the Algorand forum closed on Nov. 6 and remains available as a read-only archive.</cite><cite>The Ecosystem Advisory Committee is being ended, and sponsorship of the Algorand Technical Committee is being stopped.</cite></p>
<p>Staking support is unaffected. <cite>The previously committed extension of staking rewards to January 2028 remains unchanged.</cite> The Foundation has also left the door open to new fee models. <cite>Usage-based transaction fees, such as those for Falcon-1024 post-quantum account signature transactions, may still be introduced or adjusted.</cite></p>
<h2 id="why-the-supply-cap-question-mattered">Why the Supply Cap Question Mattered</h2>
<p>The supply cap had been a sensitive issue for holders. <cite>ALGO has a fixed supply of 10 billion tokens.</cite> One analysis noted that <cite>Project King Safety also explored new token emissions for block proposers, which would end the fixed supply, and that any change would need 90% of staked ALGO.</cite> The same analysis said <cite>99.75% of what stakers earn is a bonus funded by the Algorand Foundation, committed until January 2028.</cite></p>
<p>Project King Safety was first discussed in 2025 as a way to fund network security once the staking bonus ends. Its cancellation leaves open how the network will pay for security beyond that date, with the Foundation pointing to usage-based revenue as its preferred direction.</p>
<h2 id="new-leadership-sets-a-self-sustaining-goal">New Leadership Sets a Self-Sustaining Goal</h2>
<p>The decision follows a change at the top. <cite>William Herkelrath was appointed CEO, succeeding Staci Warden after nearly five years leading the network.</cite><cite>He officially assumed the role on Aug. 31.</cite><cite>In a Sept. 26 summary of his community Q&amp;A, the Foundation said every existing initiative and partnership was being reviewed against a goal of making Algorand self-sustaining.</cite></p>
<p>The Foundation has also been under cost pressure. <cite>It cut 25% of its workforce in March, citing macroeconomic uncertainty and the broader crypto-market downturn.</cite><cite>The Foundation said the next priority is extending its post-quantum security capabilities to custodians, wallets, issuers and other networks in the wider Web3 ecosystem.</cite></p>
<p><strong>Sources:</strong></p>
<ul>
 <li><a href="https://panews.io/articles/01a1b175-e7c5-7524-af85-924a2403fbb2" rel="noopener noreferrer nofollow">PANews: Algorand suspends xGov program, no longer considering lifting ALGO supply cap</a></li>
 <li><a href="https://thedefiant.io/news/blockchains/algorand-foundation-shuts-forum-and-advisory-council" rel="noopener noreferrer nofollow">The Defiant: Algorand Foundation Shuts Forum and Advisory Council</a></li>
 <li><a href="https://cryptonews.net/news/altcoins/33593959/" rel="noopener noreferrer nofollow">Cryptonews: Algorand Marketing Chief Resigns After CEO and CTO Departures</a></li>
</ul>
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Algorand Foundation Drops Plan to Lift ALGO Supply Cap, Pauses Project King Safety

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