Algorand Unlocks 50M ALGO Tokens From Super Rewards Staking Program, Sell-Off Incoming?
- Algorand’s 200 Million Algo staking reward program’s first 6-month session completes today
- US, China, Canada, and other countries not qualified to receive the rewards
- ALGO currently trading in the red, but the release of nearly 9% of ALGO circulating supply not expected to bring in more losses
For participants of its Super Rewards staking program. Algorand will be unlocking 50 million of its ALGO tokens.
However, the Algorand Foundation has explained that the pool of 200 million ‘reward' ALGOs will not increase the total ALGO supply. The Foundation explains that this is because
“it comes from the pool that had been assigned to auctions, which are suspended for this quarter.”
These 50 million tokens equal 9% of ALGOs total circulating supply. Currently, the token trades at $0.333, down 2.06% in the past 24 hours. This new influx of tokens could add increased selling pressure for ALGO's price.
But reportedly, if Super Rewards move out even a single ALGO token from these rewards and previous staked ALGO, they would be disqualified. This means users won’t be getting any more ALGO from the remaining 150 million tokens to be distributed in the next three, 50 million, token releases.
“TLDR: Due to the Disqualification clause, I highly doubt people would unlock their tokens for selling. So nothing changes much and those 50 MIL remain locked more or less,” said Thomas in the Algorand Community Telegram.
A 200 Million ALGO Staking Reward Program
Algorand’s 200 Million ALGO staking reward program was a success, which received “overwhelming[ly]” positive response, and was fully subscribed by its deadline of Aug. 31, 2019.
Under the program, those participants that completed their KYC (know-your-customer) will receive at least 1 ALGO in rewards for every ALGO staked over the course of four 6-month periods.
These rewards will be given on March 1st with the completion of its first cycle. But to be eligible to receive their staking rewards, the participants needed to undergo KYC/AML checks by Feb. 23, 2020.
The staking reward will be calculated by the staking reward ALGO for that period, which is 50,000,000 ALGO divided by the total number of tokens across all qualifying wallets.
The trading of the tokens and auctions are, however, unauthorized for participants residing in the United States of America and its territories, Canada, Democratic People's Republic of Korea, Cuba, Syria, Iran, Sudan, Republic of Crimea, and People's Republic of China. As a result, they are unqualified for the staking rewards.
Algorand Inc. and the Algorand Foundation do not qualify for this program and are not participating, states the website.