Myth buster: Algorand has BRILLIANT tokenomics, and here’s why:

First off, it’s important to have an understanding of tokenomics and what the criteria for good tokenomics would be;

Tokenomics provide a way to assess how a token will be used and possibly provide insights into the potential success of a particular cryptocurrency.

The factors that underpin the makings of a well-developed token are the following:

1. Useful within the ecosystem

2. Resistant to inflation

3. Has the potential and ability to scale

4. High in value

5. Present on exchanges

There’s a common myth that Algorand has bad tokenomics, which seems to have spread pretty much unchallenged within the space due to what is now historical information.

But if we look at each point in turn we can prove that this is not the case.

Point 1. Useful within the ecosystem:

The Algorand token ALGO is used throughout the ecosystem to fund all transactions on the Algorand blockchain. It is vital to and is the root of all transactions, whether that be a payment, the creation of a smart contract, staking, defi, NFT, application- anything- all occurs via Algorands ALGO token. Point 1 then is ✅

Point 2. Resistant to inflation:

This is where most people originally obtained the opinion that Algorand was inflationary. A couple of years ago, there was much less supply in circulation and it is fair to say that inflation was high at that time. But that was a couple of years ago. There will only ever be 10bn Algorand in circulation and as I write this there is already 7.8bn in circulation. So 78% of Algo is already out. So the maximum inflation for this token is now only 22% FOREVER.

If you compare this to some other big projects you can see how good this is.

XRP has 53% in circulation out of 100bn, so that’s 4.3x the total supply of ALGO still yet to hit the market. 43 BILLION tokens! And yet I’ve never heard anyone say XRP has bad tokenomics.

SOL has an unlimited supply. So potentially unlimited inflation.

HBAR has 64% of its 50bn tokens released. Meaning it still has 18bn tokens to go! 1.8x the total supply of ALGO. Its current annual inflation rate is 44%!

Check the stats out for yourselves, you’d be surprised when you compare them.

https://messari.io

Point 2 ✅

Point 3. Has the potential and ability to scale:

Algorand as a network is just getting started. They’ve spend the bear market building. Back in November 2021 ALGO had around 1500tps, this is now 10,000tps.

It’s now quantum secure.

Its finality time is up from 3.8 seconds to 3.3 seconds which is pretty unmatched in the industry.

It’s got deals with FIFA, the Bank of Italy, Limewire and lots more besides.

All within the bear market.

It’s just received a $50m investment from DWF labs https://cryptoslate.com/algorand-partners-with-dwf-labs-in-50m-deal/?amp=1 which will easily fund the foundation until well after this bear market ends

Its founder is Silvio Micali. The OG of crypto. https://en.m.wikipedia.org/wiki/Silvio_Micali Probably the second most important person in crypto industry history next to Satoshi Nakamoto. Without Silvio’s work there couldn’t have been Bitcoin.

Here’s what Charles Hoskinson had to say about Silvio, Algorand and their team https://youtu.be/hD7zr9vZEhs

And he’s also right about market adoption, this hasn’t started for Algorand yet in anywhere near the amount that it will. John Alan Woods, who is undeniably one of the best CTOs in crypto, has recently released ALGOKIT, which gives developers the best user experience in crypto. The Algorand foundation runs training courses for new developers in India, which is one of the biggest markets in the crypto space and is likely to be one of the main hubs for development in the future. https://www.prnewswire.com/news-releases/algorand-foundation-announces-broad-reaching-partnerships-in-india-to-grow-web3-301740183.html

So does Algorand have the potential to scale in future- god yes ✅

Point 4. High in value:

Algorand is one of the top 50 cryptocurrencies in the world with a market cap of $860,000,000 so point 4 ✅

Should it be higher. Yes it should (see point 3)

Why isn’t it higher?

Two things have damaged Algorands price recently. A third party web wallet was hacked. This wasn’t anything to do with the Algo protocol, but it was one of the main wallets used by Algo holders.

At the end of the day though it wasn’t Algorand that was at fault, the blockchain was and is just as secure as ever.

The second thing that damaged the price was Gary Gensler. In the Bittrex case, Gensler accused ALGO of being a security. This was just before he went round naming other tokens like SOL, MATIC and ADA as securities and it certainly had the biggest impact on ALGOs price. People feared that it would be delisted by exchanges and the price would tank.

But we now know from the Ripple case that it depends on how the token was sold as to if it counts as a security, and that tokens sold via exchanges don’t fit that definition. So what do we know about ALGOs sales outside of exchanges? We know that the Algorand Foundation is based in Singapore, and held an ICO in Singapore which excluded US participants https://www.algorand.foundation/algo-auction-overview So in other words, the exchange sales are fine, non securities, and no exchange will delist ALGO- and the ICO sales were held in a way to specifically stay outside of the jurisdiction of the SEC. So there’s no court case for ALGO pending folks.

This price has been suppressed and some of us believe that it’s been suppressed for a reason.

Point 5. Present on exchanges:

ALGO is available to trade on all major centralised and decentralised exchanges. ✅

The market options for ALGO are just as big as for any other major cryptocurrency.

It’s also being used to bridge to other cryptocurrencies. During the recent PEPE boom, you could avoid huge gas fees by buying PEPE on Algo- which has virtually no gas fees. So you basically got $50 more worth of PEPE just by using Algo to buy it.

In summary, ALGO has brilliant tokenomics. When you see people saying that they don’t, they’re either working off old, now incorrect information, or they just don’t want to hear the truth.

Don’t listen to the fud (which will soon be available below).