Crypto grants are usually handed out by a foundation. @Algorand's xGov program takes a different route: the people who keep the network running vote on them instead, with funds paid onchain t
Crypto grants are usually handed out by a foundation. @Algorand's xGov program takes a different route: the people who keep the network running vote on them instead, with funds paid onchain to open-source builders.
Voting power comes from producing blocks. Each block that an account produced over a recent 3 million-block window counts as one vote, so busier node runners carry more weight. Messari's Q3 2025 brief says voting power is assigned in proportion to blocks produced in the most recent 3 million-block observation window, which is updated every million blocks.
The model ties influence to network contribution rather than token holdings. According to the xGov Explorer, there is no minimum ALGO stake requirement. Participants must instead operate an Algorand node involved in consensus.
The biggest nodes cannot push a grant through alone. A proposal needs at least 51% yes votes plus two turnout minimums. One counts every voter equally, while the other counts voting power. Bigger requests need higher turnout. The xGov Explorer also notes that the voting mechanism varies by category depending on the amount requested.
@AlgoFoundation took xGov live on mainnet in July 2025. Block-producing accounts enroll for a small one-time fee to vote. Messari reports that voters pay a one-time enrollment fee of 10 ALGO, while proposers must complete KYC and pay a separate 100 ALGO account creation fee.
Proposals are limited in scope. Per Messari, grants range from 2,500 to 200,000 ALGO and cover tools such as SDKs, wallets, explorers and telemetry. The Foundation set an initial 2025 xGov budget of 3 million ALGO, or 0.03% of total token supply, according to the same report. The xGov Explorer adds that only retroactive grant proposals for open-source contributions and projects are accepted.
The program sits alongside Algorand's shift away from governance rewards. The Algorand blog says staking now rewards node operators for securing the network, while xGov gives engaged community members a role in directing ecosystem development.
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