This article is only for educational purposes and does not provide any financial advice, this will be a constructive criticism of Algorand and talk about the cons of Algorand.
Algorand price today is $1.77 with a 24-hour trading volume of $282,050,968. The circulating supply of ALGO coins is 6.1 billion, and the total supply is 6.62 billion. You can buy or sell Algorand on Coinbase Exchange, which is the most active exchange right now.
Algorand is a scalable, secure and decentralized digital currency and transactions platform.
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The Cons of Algorand: Tokenomics
ALGO has a maximum supply of 10,000,000,000 (10b) coins, but just 57% of the supply has been released so far. You can find the schedule for coin release here
Also, ALGO employs an ‘accelerated vesting’ algorithm: if the 30-day moving average (30MA) reaches a new ATH, the rate at which new ALGOs are introduced into circulation is accelerated by 5%+ (Source). Combined with artificial price suppression, this results in a significant annual inflation rate, so ALGO is not a short-term investment.
A long-term investment is the best way to view ALGO’s tokenomics, since the tokenomics aren’t ideal.
Initial distribution and relay nodes
The ALGO currently relies on a network of 100-120 relay nodes for high-speed transactions. Participants participate in and drive ALGO’s pure-proof-of-stake consensus, while relay nodes direct traffic (i.e. an ISP).
However, ALGO has a particularly low Nakamoto coefficient (a measure of decentralisation) since relay nodes constitute a centralised point of failure. Without the relay nodes, ALGO comes to a halt.
The Algorand Foundation holds a significant share of ALGO to reward early backers (i.e. relay node runners) (Source).
ALGO’s distribution is heavily skewed at the very beginning. A move toward decentralisation was clearly second in importance to developing a stable blockchain and price, according to Agorand.
Though ALGO has a vast array of real-world use cases, it lacks a range of features and services aimed at retail. As of this writing, ALGO’s main net only runs a single DApp (Yieldly). Though L1 smart contracts have been running for 1 and a half years, the ecosystem has been slow in gaining traction.
As a result, ALGO has focused primarily on institutional partnerships and establishing itself in the FinTech sector, whereas the retail level and DApp ecosystem have been neglected.