What this complete guide to Algorand (ALGO) covers:
What is Algorand
How to create an Algorand wallet
How to Buy Algorand with Credit-Debit card or Bank account
How to stake Algorand and earn passive income
Algorand is a scalable, secure, and decentralized cryptocurrency and smart contract platform. They’ve developed their own consensus mechanism that is a variant of proof of stake called Pure Proof of Stake™.
The company is based in Boston and was founded by a turning award-winning MIT Professor called Silvio Micali. He has also assembled a pretty strong team from MIT and other academic institutions, given the star power behind this project.
They were able to raise a pretty large amount of money through 2 private sales and one public sale of over 120 million dollars. Those backing them in the private sale included the likes of Union Square Ventures** and Brainchild **among many others.
Hundreds of organizations comprised of fintech startups, financial services, institutions, and DeFi are currently building on Algorand. The robust community is creating a healthy ecosystem of organizations that are aligned with Algorand's longer-term vision for the future of finance.
Tokenomics
I think this has to come down to its tokenomics. So let’s take a look at those now shall we as mentioned the native token on the algorithm blockchain is there an ALGO token? This is a utility token and there are two main functions that I can see. Firstly, it can be used in order to **steak and earn **those ecosystem rewards, and secondly, it can be used in order to **pay for transaction fees **and dap computations.
There were a total of 10 billion tokens that were minted in the Genesis block. Now while that may seem like a lot the circulating supply is only about 1 billion and right here, you can see the token release schedule now something that you should note about. This is the fact that there are still token sales ongoing. As they state they set a sales target of 150 million ALGOs for this year. However, with a 1 billion circulating supply that implies protocol inflation of close to %15 which is pretty damn high and these are just the token cell components. There are additional ALGO hitting the market as a combination of not only participation rewards but also a staking rewards component. Here you can see the total ALGO that’s being dispersed through the standard rewards, and here you can see the ALGO just coming onto the market as a result of the staking participation program by my calculations. That’s an additional 165 million ALGO there would be hitting the market in 2020.
If we add that to the proposed token cells that’s quite a hell of a lot of inflation. Now, I should also point out that 5 million ALGO were burned in an auction by a back this year more on that in a bit. However, this is just not enough to counteract the millions of the coming on to the market, as we know increased supply without a counteracting increase in demand results in a price fall.
Continue to:
How to create an Algorand wallet
How to buy Algorand with a Credit-Debit card or Bank account