Let's talk Algorand... Again.

Namaste kings and queens,

Algorand is one of those investments that doesn't have many middle men: either you love it or you don't. I'm here today to talk about the good, the bad, and the potential of ALGO.

What is it?

Algorand was founded by MIT professor and everyone's much older uncle at the family reunion Silvio Micali in 2017, and if ALGO has anything it's some serious academic cred.

Micali is a Turing award winner in 2012, which puts him in some very rare air when it comes to computing; and though in some cases things like this don't matter, the team behind a project is very important when it comes to my money. His work with zero knowledge proofs set the base for ALGOs unique opportunity. Made as an attempt to solve the trilemma of problems that crypto is meant to solve, Algorand is Silvio's swing at solving the crypto trilemma of decentralization, scalability, and security.

What are zero knowledge proofs?

Zero knowledge proofs are a means of transaction in which no passwords are exchanged, however the verifier is convinced by the prover that they have the information necessary without revealing what that information specifically is. This provides security of transaction and privacy for the recipient as well as in no situation is any party revealing pertinent information that could potentially be stolen.

Algorand operates on a "pure" proof of stake model. How do it differ from PoS you ask? The answer is not by too much.

Like PoS a user's influence over the next block is proportional to his/her/their stake in the system, after which they are randomly and secretly selected to vote on the next block and vote on proposals. This is an obvious step of on the wasteful PoW model that older cryptos tend to run on. I won't get too deep into it in this post but in short: fuck Proof of Work, all my homies hate proof of work.

Onto the bad and the questionable. Yes, we're gonna talk tokenomics.

The Algorand Foundation and structured selling

In order to fund their active work on the blockchain, the Algorand Foundation sells tokens from their stash. This of course has some limitations, in that they must sell above market value, and this automatic selling is stopped if the price action dips below 10%. Coupled with early investors being able to unlock ???? a portion of their tokens so sell if the price of Algo is lower than the month before this has largely led to a relatively stagnant price action.

How bad is it? ALGO tokenomics

Let's start with the basics:

Total supply: 10 Billion

Though the supply is fixed, the liquid supply will fluctuate based on unlocked tokens as they were pre-minted. The vesting period has been updated to be a 10 year model through 2030 or longer in order to ensure the scalability of the project.

Supply owned by the foundation: 500 Million

Many of these tokens will be used to fund the continued development on the blockchain, through the aforementioned structured selling. As far as an investment goes this is a long term play if you're planning to make any substantial amount of money.

So u/anotherjohnishere, do I buy ALGO?

The answer is sure, if you have the patience to wait for a bit in order to have a payoff then buy all means buy and stake! If you're looking for a short term money maker look elsewhere, SOL and DOT will have more substantial price action in the short term. I don't do price prediction, but those of you hoping for $100+ in the next few years will be disappointed, but I won't say that price point is impossible in 10+ years.

Disclaimer: I own Algo to the tune of $****

Be love.

Edit: I forgot to mention the potential of CBDC's which is a huge draw of the blockchain. Algo has huge potential as the home for governments' native digital assets due to its speed, security, and scalability; it's positioned itself to be a truly unique project in the near future.