As part of an ongoing effort to bring transparency and clarity to the Algorand project, we are continuing to publish regular transparency statements on our Algorand holdings and activities.
Entities and financial relationships:
USV’s has made its investment in Algorand, Inc, and holds its node agreements with the Algorand Foundation, through parallel entities that invest/divest in lock step. As a result of this structure, we maintain a set of Algo accounts for each of our token-holding entities (e.g., a cold storage account, an account dedicated to the staking rewards program, a trading account, etc.).
USV has signed node agreements which we believe are identical to those of the other early backers. Our tokens currently vest over a period of 5+ years, assuming our nodes are run in good standing. We run a total of 9 nodes.
USV is an investor in other cryptocurrency funds, as described here, some of which may have exposure to Algos. At least one USV portfolio company has taken investment from entities in the Algorand ecosystem.
To date, USV has not sold any vested Algos, which constitute roughly 90% of our current Algo holdings. We have sold a percentage of our rewards Algos to cover potential tax liabilities stemming from staking, participation and bonus programs. Our sales to-date amount to less than 10% of our potentially sellable holdings, and less than 2% of our total holdings, including unvested Algos. As it turns out, we have subsequently revised down the estimate of our tax liability. In light of this change over 50% of our selling in Q3 wound up being in excess of tax related selling.
Linked below are all previous posts USV has written regarding Algorand: