The Algorand Foundation has provided a new update on its long-term sustainability initiative, Project King, confirming that bonus staking rewards will continue through January 2028 while the network evaluates proposed protocol changes. The announcement marks the next stage of a governance process aimed at refining recommendations before they are presented to the wider Algorand community.
According to the Foundation, the Project King Safety Paper will be shared with the Ecosystem Advisory Council (EAC) during July for review. Feedback from the council is expected to help shape the proposal before it is released more broadly, reflecting the Foundation’s consultative approach to one of the network’s most significant protocol discussions in recent years.
To provide stability during the review process, the Foundation also committed to extending bonus staking rewards for an additional year. The extension is intended to ensure participants continue receiving incentives while governance discussions and technical evaluations take place, rather than introducing major economic changes before consensus has been reached.
Proposed Fee Changes Aim to Improve Long-Term Sustainability
Alongside the governance update, the Foundation revealed it is developing significant changes to Algorand’s transaction pricing model. The proposal would move away from the blockchain’s long-standing fixed transaction fee of 0.001 ALGO toward a more flexible system in which fees could better reflect the computational resources consumed or the specific type of transaction being executed.
Such a model is increasingly common across blockchain networks, where more complex smart contract interactions often incur higher fees than simple token transfers. Supporters argue that resource-based pricing can improve network efficiency and provide a more sustainable economic model as decentralized applications become more sophisticated.
However, the Foundation emphasized that these ideas remain proposals rather than finalized protocol upgrades. While it can develop and recommend changes, implementation ultimately depends on approval through Algorand’s decentralized governance process.
Community Approval Remains the Final Decision
One of the most significant aspects of the announcement is the Foundation’s acknowledgement that any protocol modifications will require a consensus upgrade supported by more than 90% of staked ALGO. That high approval threshold is designed to ensure major changes receive overwhelming backing from network participants before becoming active.
The Foundation also noted that recent governance changes have given it greater responsibility over protocol development, allowing it more flexibility in designing potential upgrades. Nevertheless, validator participation remains essential, meaning the Foundation cannot implement protocol changes unilaterally.
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The update comes as blockchain networks across the industry continue reassessing their economic models in response to growing demand for decentralized applications, tokenized assets and institutional blockchain adoption. Several major Layer-1 networks have introduced or proposed changes to transaction pricing, staking incentives and validator economics to improve scalability and long-term sustainability.
For Algorand, Project King represents a broader effort to balance network efficiency, developer experience and economic incentives without compromising decentralization. While the Foundation has outlined its preferred direction, the project’s future will ultimately be determined by community consultation and the outcome of the network’s governance process.
