Algorand is a blockchain known for fast transactions, sub 4 seconds, with instant finality. In this post we will review the foundation’s distribution of Governance rewards by transactions per second (TPS) and to see how reward distribution TPS has changed across Governance periods.
*Period 7 was the first period users could become an xGov. Some eligible governors had rewards deposited into a beneficiary account that were distributed outside of the observed transaction calculations.
Please note, my calculations focus on the first distinct wave that accounts for the vast majority of the reward distributions. There is a slight discrepancy between eligible Governors and included transactions in my calculations.
The foundation’s goal has never been to distribute rewards as quickly as possible.
Feel free to check my work by copying the Google spreadsheet below with all the variables.
Foundation Response
Shane, a member of the Algorand Foundation, responded to my reddit post with some great insights on reward distribution TPS.
Unfortunately, the main bottleneck isn’t the blockchain but for all Foundation spending we have third party custodians that essentially need to approve the transactions. So unfortunately we can only be as fast as their API allows. But improvements are being made!
Recently the VP of Engineering at Algorand, Gary Malouf, tweeted round times may be reduced with the next consensus upgrade. With the upcoming reward distribution for Governance Period 6, I wanted to see if the foundation will flex Algorand’s capabilities.
Thinking we might reduce round times next consensus upgrade..Friday thoughts
Special thanks to Algorand Observer, which is part of the D13 Collective. They create great content and are invaluable to the Algorand ecosystem. In response to this post they ran the numbers for period 6 distributions, with more granular details.
With the tremendous and continuous development of Algorand’s superior blockchain technology it’s an exciting time to be involved with the Algorand ecosystem.
