Read this article on bsc.news The Algorand Foundation has paused Project King Safety indefinitely, shelving a planned overhaul of the network's fee and rewards model for $ALGO. Ideas to raise
The Algorand Foundation has paused Project King Safety indefinitely, shelving a planned overhaul of the network's fee and rewards model for $ALGO. 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.
The update came in a community post from @AlgoFoundation. It said that under new leadership, Algorand will focus on building a sustainable, revenue-generating network model.
The Foundation is also scaling back several community and governance functions. 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.The Ecosystem Advisory Committee is being ended, and sponsorship of the Algorand Technical Committee is being stopped.
Staking support is unaffected. The previously committed extension of staking rewards to January 2028 remains unchanged. The Foundation has also left the door open to new fee models. Usage-based transaction fees, such as those for Falcon-1024 post-quantum account signature transactions, may still be introduced or adjusted.
The supply cap had been a sensitive issue for holders. ALGO has a fixed supply of 10 billion tokens. One analysis noted that 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. The same analysis said 99.75% of what stakers earn is a bonus funded by the Algorand Foundation, committed until January 2028.
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.
The decision follows a change at the top. William Herkelrath was appointed CEO, succeeding Staci Warden after nearly five years leading the network.He officially assumed the role on Aug. 31.In a Sept. 26 summary of his community Q&A, the Foundation said every existing initiative and partnership was being reviewed against a goal of making Algorand self-sustaining.
The Foundation has also been under cost pressure. It cut 25% of its workforce in March, citing macroeconomic uncertainty and the broader crypto-market downturn.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.
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