Algorand activated version 5.0 on August 22, 2026, introducing larger application sizes, expanded transaction limits and a revised fee structure aimed at developers building more complex decentralized applications (dApps). Maximum app size has doubled from 8 KB to 16 KB through an increase in program pages from three to eight, with each page sized at 2 KB. Updatable existing applications can use the additional capacity, and developers can now modify an app's global state schema, which was previously immutable. Application arguments per call have also expanded from 2 KB to 16 KB, while LogicSig programs that enable stateless smart contracts can reach 16 KB within a single transaction. Larger transactions will use a dynamic usage-based fee model that measures total resource consumption across a transaction group, including inner transactions generated by application calls. Algorand advises developers to use simulation tools for fee estimates. The upgrade includes AVM v13 and the poseidon2 hash function and supports the network's roadmap toward full quantum resilience by 2027. ALGO was trading at $0.092051 on August 22, down 1.87% over 24 hours, with the muted market reaction attributed to broader market trends rather than a direct response to the upgrade. A subsequent upgrade focused on safety and flexibility, under the banner of "Acid," is expected later that week.