Algorand Scraps Supply Cap and MEV Plans, Extends Staking Rewards

Algorand Scraps Supply Cap and MEV Plans, Extends Staking Rewards

By: WEEX|11/06/2026 15:54:22

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For ALGO holders and node operators, the reported shift appears less about abandoning sustainability goals than changing how Algorand intends to fund them. Broad tokenomics tightening has been shelved, while participation incentives will remain available through January 2028 and more narrowly targeted pricing for post-quantum transactions is still possible. In practice, this suggests a softer approach to network-wide economic changes alongside a more targeted, centralized operating model.

A supplied current report says the Algorand Foundation has indefinitely suspended Project King Safety and will no longer pursue proposed measures including an ALGO supply cap, MEV capture and a broad increase in minimum transaction fees. Staking rewards have been extended through January 2028. The report also says fees related to Falcon-1024 could still be introduced or adjusted, alongside cuts to several governance and community programs.

What Algorand Reportedly Dropped and Retained

The report draws a clear line between proposals Algorand will no longer pursue and incentives it plans to retain. Project King Safety has reportedly been suspended indefinitely, and the Foundation will not proceed with the proposed ALGO supply cap, MEV capture or a broad increase in minimum transaction fees.

At the same time, staking rewards will remain in place and have been extended through January 2028. This indicates that the reversal is not a complete retreat from network-incentive policy. Rather, the package points to a reset in how Algorand aims to support participation and its long-term network economics.

Algorand materials surfaced in the supporting research describe Project King Safety as part of a longer-term sustainability effort, while separate Algorand material indicates that staking had already become an active incentive channel. Taken together, the latest move looks like a strategic recalibration: less focus on tightening supply and fees, and greater emphasis on keeping rewards available.

ItemReported status
Project King SafetyIndefinitely suspended
Supply cap proposalNo longer being pursued
MEV capture proposalNo longer being pursued
General minimum-fee increaseNo longer being pursued
Staking rewardsExtended through January 2028
Falcon-1024-related feesMay still be introduced or adjusted

Why Falcon-1024 Fees Could Still Proceed

The report makes an important distinction between a broad fee increase and fees tied to a specific type of transaction. In other words, abandoning a general minimum-fee increase does not necessarily rule out separate pricing for Falcon-1024 post-quantum account-signature transactions.

That distinction is consistent with Algorand materials identified in the research. They describe native Falcon-1024 support and a more resource-based approach to transaction pricing in newer protocol work. In that context, Falcon-1024 fees would reflect the characteristics of those transactions, rather than serving as a blanket fee increase across the network.

For those asking whether Algorand still intends to raise fees, the narrower answer is that the previous network-wide fee initiative is reportedly off the table, while a Falcon-1024-specific fee option remains open. No fee amount, implementation date or formal proposal text was supplied for this measure.

What Changes for xGov, the Forum, EAC, and ATC

The same report says the Foundation will also scale back several governance and community structures. It states that xGov funding will be suspended indefinitely from December 6, the Algorand Forum will close on November 6 while retaining a read-only archive, and both the Ecosystem Advisory Committee and Foundation sponsorship of the Algorand Technical Committee will end.

These changes extend the significance of the announcement beyond tokenomics. They suggest that the Foundation is not only stepping back from the most controversial Project King Safety proposals, but is also reducing community-facing programs and committee structures across the ecosystem.

The report links the shift to a new management focus on a sustainable, revenue-generating network model and on promoting Algorand’s post-quantum capabilities to custodians, wallets, issuers and other networks. Still absent is a supplied primary document setting out the formal status of each closure, replacement structure and decision-making process in full detail.

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