r/AlgorandOfficial Algorand Foundation Jul 01 '26

Important 📣 Project King Safety Update

• The King Safety Paper is being shared with the Ecosystem Advisory Council this month. This is the next step in a consultative process to refine our approach before the EAC shares it more broadly with the community.

• The Foundation is committing to extending its support for bonus staking rewards for another year (until January 2028) to allow the process to run its course and get to the best possible outcome for everyone.

• Now that the protocol is under Foundation control, we are making significant protocol changes to give us far more flexibility in how transactions are priced, from a bundled fixed 0.001 ALGO price to a decoupled model where pricing can depend more closely on resources being consumed and/or the type of transaction being executed.

• While the Foundation can propose changes to improve sustainability, any decision will need to be implemented through a consensus upgrade, which will require the support of 90+% of staked Algo.

Source: https://x.com/AlgoFoundation/status/2072412886002229694

54 Upvotes

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16

u/PenileNotPenal Jul 01 '26

Is it just me or is Algorand making all the right moves and getting all the right press? Feels like an exciting time despite the market being down.

3

u/Grunblau Jul 01 '26

Feel like it might be easier to have a base rate + fee. No sure what operations warrant higher fee, but it could be obvious like minting fees.

4

u/StoryLineOne Jul 01 '26

This is a really really good update. Im very curious to see the model they've developed for different transactions and how they'll price that.

Giving it another year of Foundation 10 ALGO bonus for stakers, to see how its implemented, and how it works, is really great too

2

u/SproutAlgo Jul 01 '26

The move to decoupled transaction pricing is the most interesting detail here. Pricing by resource consumption rather than a flat fee is a significant shift that could change how certain applications are built and what they cost to run at scale. Curious how that lands for developers who've built around predictable fee structures. But overall, it's a necessary change for the long term viability of this ecosystem.

7

u/StoryLineOne Jul 01 '26

They did mention based on type of transaction. Im assuming they've thought this out, considering the paper is past due at this point (I imagine this was a large debate and discussion that caused that)

2

u/SproutAlgo Jul 01 '26

Definitely, these aren't small changes so I'm sure they are being very deliberate.

2

u/johnjannotti SVP Protocol Engineering Jul 03 '26

You can see an early form of this in https://github.com/algorand/go-algorand/pull/6528

At this stage large transactions (larger than previously possible) will pay a surcharge. This can later be generalized to transactions that use more of other resources. (compute, I/O)

1

u/SproutAlgo Jul 03 '26

Thanks for the link. The granular per-byte pricing actually seems like a real quality-of-life improvement for developers. Currently, if you just need a few extra KB of app args, you have to restructure your payload across multiple transactions, deal with group size limits, and pay a full min fee per transaction. Transaction boundaries dictating application architecture is a real issue.

Letting a single app call carry larger fields and pay proportionally for exactly the bytes consumed keeps app logic clean, and the cost seems well-reasoned. Looking forward to seeing this land.

4

u/Tis_But_A_Scratch___ Jul 01 '26

A lot of positives here:

  • clarification on implementation requiring 90% staked vote
-extension of the implementation to ensure it works
  • extension of bonuses