Fluctuating circulating supply?

Why does the circulating supply of ALGO fluctuate? The supply should only go up, correct?

I’ve seen it go up and down a few times on Algo Explorer. Anyone have a reason. Does the foundation or INC. buy back ALGO?

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Hi Domenico, technically it is correct, the circulating supply can only go up, except for a single fact: the fees. In fact the fees represent a steady (irrelevant) flow from all the users who initiate a transaction to the fee sink, which is owned by the Foundation: Algorand Account
That said, Algo Explorer sometimes takes time to update its internal dataset of Foundation addresses, therefore there are moments during which the circulating supply seems to temporarily drops, but it is promptly amended. Last comment: a possible buyback from the Inc won’t affect the circulating supply, because since Sep 7 2021 the definition of circulating supply includes only the Foundation wallets: Aligning Algo Circulating Supply Metrics for Algorand Ecosystem | Algorand Foundation News


Ok, thanks for clearing that up.

update: Does the foundation have plans to acquire any companies that could possibly bring in cashflow of USD so they dont have to rely on selling Algo. Hopefully Napster can help bring in money.

or as I said before in other posts, Algorand Foundation should be a publically traded company.
they should be selling ALGO stocks, not ALGO tokens. I think they would gain the interest of a lot more “traditional” investors.

During the past few months there have been multiple cases of multi-million algo drops for a long period of time (days or weeks), which is not explained by the fees (in order of thousands). The issue is consistent between AlgoExplorer, CoinMarketCap, etc., so it is not probably an issue with AlgoExplorer. Ideally the foundation wallets should be listed with all transactions and dates on the foundation website.

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I am not aware of possible future acquisitions in the short term, honestly, but it could be an idea for future directions.

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You’re right, it happened in the past, but afaik the spurious drop has always been due to improper exclusion of Foundation wallets. The last time it happened just a few days ago when an internal movement between Foundation wallets of the 70.5M Governance Rewards has been improperly detected by Algoexplore as an increase of the Circulating Supply, and the subsequent amendment as a decrease, but the final accounting (after both the decrease and increase) is correct. You can have a look at the related discussion here:

If you are aware of a particular event of multi-million drop, happy to have a look and investigate further, transparency is the key!


Does the foundation make a annual budget for expenses? Why not set up a budget wallet address and have a budget report with the dates set. They could take out money for expenses quarterly.
That would bring more transparency to the community. I dont know, maybe a quarterly budget report right around governance. Get feed back from community on what they did or didnt like about how the money was spent.

Not saying let the community necessarily have power to control the budget but to get some ideas and maybe implement some of the good ones.

The foundation needs to find a way to monetize so they dont have to be so reliant on a volatile asset for expenses. Come on Algorand, think outside the box. Find a way to monetize. And, no, i dont mean yield farming.

All those bright minds in the foundation I’m sure you guys can come up with some ideas. Scratch the ones that didnt work and try new ones.