Algorand seeks role in US government D.O.G.E blockchain initiative

Algorand Foundation has pitched its network to the Department of Government Efficiency (D.O.G.E) as suitable for taking the US government operations on-chain. In a post on X, the Foundation noted that the pure proof-of-stake (PPoS) network is ideal.

According to the Foundation, the network’s entire history is quantum-resistant, which means it is ideal for storing data on-chain even in a world where quantum computing is a reality.

It said:

“Algorand’s entire chain history is quantum-resistant. In a post-quantum world, this provides an ideal level of security for many use cases, ensuring data remains tamper-proof.”

The Foundation noted that Algorand is an excellent platform for tracking government spending. This is in reaction to several reports that the newly formed D.O.G.E, which has Elon Musk at its head, is considering using blockchain technology to reduce the federal government’s running expenses.

While nothing is official, people close to Musk have reportedly been discussing using blockchain technology for several purposes, including tracking spending, making payments, and securing data.

News reports also claim that people connected to D.O.G.E have been meeting with blockchain companies to evaluate their technologies. This is likely why the Algorand Foundation is putting the network’s name in the ring.

Algorand, launched in 2019, is a second-generation Layer-1 network that prides itself on never having downtime. However, the network has not seen as much adoption as some of its peers, such as Solana.
Still, its ALGO token is among the top 50 digital assets by market capitalization despite dropping 23% year-to-date.

Algorand Q4 report shows significant growth

Despite a relatively weaker performance compared to its peers, the latest report from Messari on Algorand’s Q4 performance shows that the network saw substantial growth in the last three months of 2024.

New addresses on the network increased by 176% quarter on quarter, going from 1.3 million in Q3 to 3.5 million by the end of Q4. Along with that, its market cap also increased by 151 while transaction fees rose 124% to reach $144,000, reflecting higher activity in the final quarter of the year.

Meanwhile, the network continues to develop even as it sees less adoption than its peers. It introduced staking rewards in 2025  and saw ZTLment migrate from Ethereum to Algorand in October.

The network has also seen some adoption for international organizations, with the United Nations Development Programme (UNDP) partnering with the Algorand Foundation to train 24,000 UN personnel through the UNDP Blockchain Academy.

D.O.G.E faces legal scrutiny over its operations

Meanwhile, D.O.G.E may have bigger issues after several US organizations filed lawsuits against the agency’s access to government records. Three federal employee unions sued the Treasury Department for giving DOGE full access to the confidential Bureau of Fiscal Service systems.

The unions, Alliance for Retired Americans, Service Employees International Union (SEIU), and American Federation of Government Employees (AFGE) all claim that Treasury Secretary Scott Bessent acted arbitrarily without following the law, putting the personal data of millions at risk.

Democrats in Congress have also criticized D.O.G.E and plan to introduce a bill to stop the agency’s access to the payment systems. However, the acting US attorney general, Ed Martin, warned against interference or threats targeting D.O.G.E workers.

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