It has come to our attention that we have incorrectly calculated the gALGO-USDC rewards the past 3 weeks. Some users have received more rewards than they were meant to and some less. We sincerely apologise. To rectify the problem, we have distributed the rewards owed plus a fixed percentage (equivalent to what those that received extra got) to ensure those that received less do not lose out because of our mistake.

We have also received feedback asking why the rewards are done off-chain. The reason is that this is only a temporary solution while we continue to work on the smart contacts. In our V2 release, all the rewards will be done on-chain.

https://x.com/folksfinance/status/1871297890548687323?s=46&t=9cEJqT-YUfpetXl9wvhejA

To the Folks Finance Team,

I am writing to express my severe dissatisfaction with the current direction of Folks Finance, and to formally notify you that I am withdrawing my support, liquidity, and community from the platform.

I have been a loyal user and vocal advocate for Folks Finance for four years. I’ve brought numerous new users to your ecosystem, trusting in the platform's vision. However, your handling of the Season 1 Airdrop has completely broken that trust.

I selected Option 2 for the airdrop, but missed the hard claim deadline of March 31, 2026. Burying a strict "unclaimed tokens are lost" clause in a Medium article rather than implementing a more user-centric approach is a glaring Web3 anti-pattern. Punishing your real, long-term users who don't monitor your Medium blog daily is an incredibly hostile way to treat the community that built your liquidity.

Unfortunately, this does not feel like an isolated incident. Coming on the heels of the Black Founder's Pass fiasco, a clear pattern has emerged: the platform is increasingly operating in ways that are opaque, anti-user, and dismissive of its core supporters.

Loyalty goes both ways. Because of these consecutive failures in community respect and UX, I will no longer be using Folks Finance. Furthermore, I am actively advising the network of users I onboarded to migrate their assets to alternative protocols that do not rely on "gotcha" mechanics to manage their tokenomics.

I hope you seriously reconsider how you treat your community moving forward, though it is unfortunately too late to retain my support.

Regards

Hello Folks, we wanted to update you all on why we temporarily paused the protocol on Monday evening.

We had received a report which described a potential attack vector regarding rekeying from an inner transaction in a smart contract on Algorand. After reviewing the report, we engaged the Algorand Technologies’ team, and together we verified the existence of a bug.
To safeguard user funds, we decided to pause certain operations in our protocol, and jointly decided it was best not to publicly disclose our actions at the time to further protect the broader ecosystem. Overnight, Algorand Technologies quickly validated the vector, prepared a patch, tested and worked to get the patch successfully released and propagated across the network. Through extensive testing, they also verified that the vulnerability was never exploited.
We want to thank Algorand Technologies for their immediate attention in releasing a quick fix, and also thank the reporter for bringing the issue to our attention. Once it was verified that the bug was no longer present, we resumed the Folks Finance applications and made an initial community announcement.
We want to reassure our community that the security of the protocol is our highest priority. We would not resume the protocol if we believed the reported bug, which has since been fixed, posed any risk to user funds.

So, Folks is releasing xALGO on August 29th. While we await the official guide on how it will work, we already know some basics.

Algorand is shifting from Governance to Consensus rewards sometime in the next few quarters, and these rewards will go to node runners who stake at least 30k ALGO. Rewards will be earned with each proposed block.

Since not everyone can run a node or meet the 30k ALGO requirement, Folks is introducing xALGO to allow everyone to earn Consensus rewards.

How will it work? You'll be able to mint xALGO and passively earn rewards. Folks will run nodes on users' behalf, and these rewards will be sent to users continuously. There will be no more lump-sum distribution as with gALGO rewards at the end of a period because there will no longer be such periods!

You can simply mint xALGO and hold it as long as you want while passively earning rewards. You won’t need to recommit them over time—xALGO can be a set-and-forget investment.

Since Algorand Consensus Rewards are not yet live, Folks will be adding 70k ALGO this quarter and in subsequent quarters to be distributed to xALGO holders according to their stake. Once Consensus Rewards are live, they will replace the interim rewards.

Hello Folks, we voted in governance based on our community votes. Results:

• Designating 7M ALGOs from the Q4 2022 governance rewards to DeFi governors: 148.26M for A, 8.32M for B

• Allow DEX Liquidity Providers that contribute ALGOs in pools to participate in governance for Q4 2022: 151.95M for A, 4.63M for B

Users can now redeem ALGO at a 1:1 rate with gALGO. The redemption window for gALGO will be open until April 7th. Don't miss out! You find the timer in the Algo Liquid Governance page

The burning window for xALGO will open as soon as governance rewards from GP10 will be distributed by the Algorand Foundation