Algorand 5.0 expands app capacity, transaction limits and quantum security

Algorand activated version 5.0 on August 22, 2026, adding native Falcon-1024 post-quantum signatures, larger applications and transactions, AVM v13, the poseidon2 hash function and dynamic usage-based fees. Maximum application size doubled from 8 KB to 16 KB through an increase from three to eight 2 KB program pages, while application arguments and LogicSig programs can also reach 16 KB. The upgrade introduces the pqsig signature framework, crypto-agile signing interfaces, hierarchical-deterministic accounts and improved key-management integration. Larger transactions are charged according to total resource use across a transaction group, including inner transactions, although minimum fees for previously supported operations remain unchanged. A block-header congestion signal currently has no effect on fees but could support future congestion pricing. ALGO traded at $0.092051 on August 22, down 1.87% over 24 hours; an earlier August 21 snapshot recorded an 8.3% gain to $0.092522. The next upgrade, focused on safety and flexibility under the banner of "Acid," was expected later that week.

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