The Algorand Foundation recently released the 2025+ tech roadmap, addressing four core pillars: Web3 core values, mainstream adoption, “Can a Blockchain Do That?” use cases, and technology's bleeding edge.
Within the Web3 core values pillar, we focus on economic sustainability, decentralization, and community governance fundamentals. This post takes a closer look at each one.
Economic sustainability
The most important priority for any blockchain is to ensure the protocol is self-sustaining and provides the right incentive mechanisms to guarantee its security.
Algorand’s current structure has some challenges: the fee structure doesn’t provide enough financial incentives for stakers, and the supplemental staking reward mechanism will run against the fixed maximum supply of 10 billion Algo.
Project King Safety, named for a strategic concept of protection and security in chess, aims to solve these issues and guarantee long-term economic incentives to protect the network's security.
These incentives could come from different sources:
- Fee-based incentives (rewards from transaction fees)
- MEV-based incentives (rewards from Miner/Maximum Extractable Value opportunities)
- Inflation-based incentives (new tokens created to reward participants)
We will closely engage the community on these options and release a position paper by the end of 2025, with implementation planned for 2026.
On-chain community governance
Algorand is reintroducing its grant program with a community-driven core. In the new program, xGov council members will vote on grant proposals.
The community elected the first xGov council members in July 2025. We expect the XGov council to approve the first grant proposals in September.
Looking ahead, we are exploring how to combine our general governance structure and xGov into a new program that will be fully on-chain, automated, and inclusive for all users, whether they stake individually or via pooling.
As with King Safety, we will engage the community on the redesign. We plan to submit a proposal for discussion in Q4 and implement the change in 2026.
Network decentralization and security
Earlier this year, the Foundation launched a new staking rewards program, incentivizing Algo holders to participate in consensus. Since the launch, the Foundation’s percentage of total stake decreased from 63% to 21%, while total validator participation more than doubled to almost 2,000 nodes in over 70 countries.
The final deliverable on our network decentralization roadmap is launching a peer-to-peer (P2P) gossip network. Until now, the network relied solely on relay nodes to distribute messages quickly between consensus nodes.
The problem with that setup is that it creates a dependency on relay nodes and introduces central points of failure or control. By launching a P2P gossip network, we will eventually remove our reliance on relay nodes.
A P2P gossip network is decentralized because no single group of relay nodes controls the communication. Instead, each node communicates directly with multiple other nodes, spreading information quickly and evenly across the network, similar to how gossip spreads in social groups.
This creates a system where messages spread without central points of failure or control. If some nodes or communication paths fail or go offline, the network can still send messages through other nodes, preventing any single point of failure from disrupting the whole system.
The P2P network is currently live on an opt-in basis and will gradually transition to a full P2P network over time. This completes our network decentralization roadmap.
Algorand is real-world ready
Our Web3 core values initiative strengthens our network, which is already one of the most scalable, secure, and decentralized in the industry.
Are you ready to explore what Algorand can do for you?
Connect with us, learn more about the 2025+ Roadmap, explore our case studies, and see how Algorand can scale your next project securely and sustainably.
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