Algorands terrible tokenomics explained


You have probably noticed that Algorand is very popular here and that for good reasons. Its a smart contract platform that is fast and scalable. Transactions are completed almost instantly and it can handle thousands of transactions at the same time and that while having fees that are less than fraction of cent.

But we also constantly criticize its tokenomics. That is because the devs hold almost the entire supply and they are always selling some new coins each time the ALGO price rises a bit. They do this to fund their operations and they have been very transparent about this, so its not like they scam ALGO hodlers, but still this makes the circulating supply higher and causes an inflation.

By 2030 they will have sold their entire bag and this selling pressure will stop. However, each time they sell their bag gets smaller while the circulating supply gets higher, so the impact of the selling will get lower and lower long before that.

I wrote an post about that on publish0x if you are interested

submitted by /u/sponge_hitler
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