Algorand Tokenomics – AKA Algo – AKA Future Millionaires???

what's going on guys welcome back to another 
video about our continued discussion on algorand   i'm holding it you're holding it uh one day i am 
hoping that al grand and you're all gonna kick   me in the teeth for saying this i am hoping that 
al goran gets to a thousand dollars a token why   because we've officially crossed the 4 000 
al goran token holding threshold once again   because we cashed out 2 000 like idiots a while 
ago and if we ever saw a thousand dollar token   we'd be millionaires and then i wouldn't have 
to be stressed about work so we're bringing   this video to you in between our shifts at work 
one day hopefully we'll be al goran millionaires   and we can stay home no drink of the day because 
we are working later this evening and i can't be   intoxicated for it so anyway let's get into 
algorithm tokenomics do a nice in my own way   breakdown of the token some of the distributions 
some of the plans hopefully you guys will enjoy   nerdy dude stuff as stated in the intro for this 
video we have officially recrossed the 4 000 al   grand holding threshold on our journey to 5000 
when we hit 5000 we will reevaluate our goals   and earn some more algo and see where we're gonna 
go from there big shout out to i believe i know   who did this but big shout out we received a three 
algo tip today that did push us over that 4 000   threshold so thank you very much again i believe i 
do know who sent this we were talking in comments   yesterday i believe it might be frankie so i 
really really appreciate it if you guys like the   content and you're ever so gracious there's a qr 
code above my head you can use your mobile app to   scan that or a wallet address for algorithm in the 
description of this video you could totally send   an algo tip any and all are greatly appreciated 
also please consider liking commenting subscribing   turning on the bell notifications all that good 
stuff so you can stay up to date on our algorithm   videos pretty soon we're gonna be on 
videos our continued mining videos we are looking   at some more miners here in the near future if we 
get our hands on them but let's get into today's   topic of algorand slash algo tokenomics as you 
know algorand is the company algo is the token   and really before we dive into this and before we 
look at the market cap and everything we want to   discuss what exactly is tokenomics tokenomics in a 
nutshell and basically just paraphrasing from the   websites like i've been doing uh tokenomics 
is the study of how cryptocurrencies work   within a broader ecosystem this includes such 
things like token distribution as well as   how they can be used to incentivize positive 
behavior in the network it's all we're going to   read from there we're going to bring up this list 
that i pulled off of another video which basically   hits it right on the nutshell tokenomics token 
economics it's purpose what does the token achieve   functionality how does it achieve it utilization 
is it actively being used and distribution how is   the token being distributed today's video is more 
gonna touch base on distribution but as you know   algorand is uh considering itself as a 
trilemma coin and its basic goals are for uh   you know frictionless financing it's safe secure 
scalable cheap fees instant transactions yada yada   yada blah blah so let's take a deep dive into 
algorand we're going to jump right over to the   coin market cap just to start off the video and i 
really like what i'm seeing with coin market cap   today because they are keeping updated on the 
supply of algorand that are being distributed   in their total supply so algorithm is currently 
sitting at a dollar eighteen we have been scooping   up every opportunity that we can usually we do it 
once a week on fridays to see where the market is   and that's when we update our bags usually from 
our dividends that we get paid out from things   like bet fury and our miner that we've got over 
in the back corner not this one this is what i'm   actually looking at uh and we are going from there 
to continue growing our algorithm bag because i   am a strong heavy supporter of the algo token 
and i do see great things as per the trend on   this channel with this token in the near future 
currently we are looking at a dollar eighteen   on algo right now its market cap is three billion 
forty four million six hundred six thousand eight   hundred and ninety two dollars that's fluctuating 
a little bit fully diluted market cap is 11   11 billion 765 million blah blah blah with a 
current 24 hour volume of 662 million and some   change there is a total circulating supply at the 
moment of 2.5 billion with a max supply which will   eventually reach in 2030 we'll show that here in 
a moment at 10 billion and then the total supply   which the difference between the circulating 
supply and the total supply is there are some   tokens that are locked up uh a coinbase has a nice 
chunk of them and for the reward program so on and   so forth but we have updated from 3.7 billion 
in the total supply to 4 billion 888 million 444   795 and we'll be seeing that release here shortly 
so those just the basics the information if you're   just jumping into algorithm you want to see the 
daily update this is pretty much it we are now   going to start talking about a few other things 
the one thing we really want to get into talking   about here with algorand is that initial 2.5 
billion to the 4.8 billion so we are halfway to   the max supply of algorithm being out in total 
not necessarily in circulation and we're going   to look at that here on the incentives for 
that now initially they wanted to have all   10 billion al goran released by 2024 at the 
end of 2020 they went through and they re they   right here they have extended the distribution of 
the fixed and immutable total supply of 10 billion   algo from 4 to 10 years from now so instead of 
ending in 2024 now 10 billion algorithm will be   fully released fully available by 2030.

Now this 
will cause some up like uproar not necessarily   uproar but some concerns about dilution and what 
happens with your tokens but i believe with this   new ratio instead of having all 10 billion tokens 
distributed by 2024 we are now gonna be able to   combat the aggressive dilution that 2024 was 
imposing into 2030 and we can scroll down here   long-term algo allocation and everything that 
they have stacked away for algo like for example   here participation rewards early backer relay 
nodes contingent incentives innovation fund   and their ecosystem blah blah blah so it shows 
exactly the breakdown of how much algo they have   allocated to each things like community incentives 
ecosystem support and for initial allocation which   any moving on which most of them algorithm inc the 
algorithm foundation and then already inject into   the ecosystem what i really like right here is 
their long-term algo distribution schedule and   if you look at this it began in 2019 and now 
this has been updated to end in 2030.

We have   multiple tiers we're going to break down just the 
2030 because it's showcasing every single plan   in the color that you can see on screen is my head 
in the way kind of sorted let's move it up next to   the qr code right there perfect so you could see 
a broader spectrum of what they finally plan to   release at the end of 2020 currently we're in 
2021 we are just getting up to that 5 billion   markers so we're kind of already ahead of in my 
opinion since we're in the first quarter of 2021   and they are anticipating 5 billion to be out and 
released by 2022 we are a little ahead of schedule   there the major categories for the long-term 
algo distribution schedule are as follows the   foundation funding the in light blue the ecosystem 
support in orange the participation incentives in   green the algorand inc in yellow early backer and 
nodes are in red and then contingent rewards are   in blue and you can see as this chart continues 
into 2030 there are some consistencies with the   algorithm inc they're not going to be getting any 
more and then there's some growth where you see   everything growing like the contingent rewards 
the early backers the participation incentives   and then ecosystem support and the founding 
foundation what i speculate from looking at   this the foundation funding this light blue line 
here this is where we're going to start seeing   in my opinion a personal a potential uptick in the 
price of algorand as this blue number in as this   blue bar increases because this is in a nutshell 
where they're going to be spending their algo   and their their finances to increase awareness 
marketing to reach out to new clients to get more   um you know backers you know basically all the 
marketing advertising that's kind of what i see   here with this blue line and the statement can 
be said for all the other lines where as this   is increased and more is spent here we're going 
to see a higher uptick in the price of algorithm another big one that we're looking at is the 
participation incentives and that's as simple   as as you saw on my wallet as long as you hold 
one algo token on your wallet ledger wallet   your official alba wallet or whatever 
participating exchanges or coinbase   you're going to be earning rewards now i do 
not uh believe that this participation reward   is inclusive with coinbase because i believe 
they have their own supply already that they   are paying out for their six percent ap why do 
i feel that holding on coinbase is something   significant at this current moment i wouldn't hold 
my tokens on coinbase because you're looking at   a higher average of about 6.5 to 7.2 percent apy 
yields withholding on the official al goran wallet   now based on some of the stuff that i've 
read here over the long term those rewards   are going to diminish slowly as there's more 
rewards being released as there's more holders   those rewards those apy percentages there will 
be the dilution of these tokens coming out   and those rewards will be diminished is it 
going to be something excessive no is it   going to be something where holding tokens in 
your wallet will help you combat the dilution   absolutely so there might be a point in the future 
i won't say the near future but there might be a   point in the next two or three years where if 
coinbase doesn't reallocate their decision to   uh release six percent apy for holding algorand 
and they leave it at six percent there might be a   bigger benefit to holding on coinbase versus your 
algorithm while but then you have to really look   into if coinbase ever gets hacked or the security 
of maintaining your coins on a custodial wallet i   should say or one of those exchanges wallets 
that there is that risk to take versus just   holding them in your personal mobile you know you 
keep your 25 passcode your private keys so on and   so forth but the benefit of that apy reducing is 
that we are getting more participation incentives   throughout the years all the way up until their 
final release of the algo token so that's maybe   something that would inspire you to want to hold 
that token for the full nine years to get to the   point where the tokens fully diluted out into the 
market and we really get to see a true value once   supply and demand the supply is already maximum 
out there to see where the demand is on algo   and then sort of also to help combat that 
additional apy change since we are technically   in an early early phase i believe we could be 
considered ourselves as early backers and nodes   i haven't personally looked into setting up a node 
for algorithm i know in the algorithm optimizer   which i did a video on that and the discord we 
have a few people talking about nodes and maybe   that's something i need to research into is 
turning my holdings into a node especially if   the node rewards for the early backers are 
going to increase over the next nine years   as well some very very solid numbers there and 
then of course we've got the contingent rewards so   it's all based on getting people in spending 
money to get the people in spending money to   attract more investors and then give them rewards 
for holding aldo the beauty about these rewards   is that they're instantaneous there's no lock-up 
period there's no minimum restrictions there's   no like with if i want to receive the 
maximum rewards i have to lock up cro for three   months straight or whatever token i decide on that 
platform i have to lock up for three months if all   of a sudden and i know it's never gonna happen 
but if algo hits a thousand dollars tomorrow   i can go right into my wallet and i can just 
transfer this over to an exchange or coinbase   and i can cash out and be a millionaire versus 
needing to unlock or wait till my cro you know   freezing is over so on and so forth and vice versa 
as soon as you hold one token in these wallets you   start accumulating the wards instantaneously which 
is very very very sexy and very very very spicy   so that's some good long-term distribution in the 
tokenomics of algorithm and there's more that you   want to be able to educate yourself on like the 
backing of the project and the individuals and but   we're not here to get into that today i just want 
to talk about algorithm that's all i want to do   and then lastly i want to talk about a little 
bit more of why i like algo and because i am   a computer whiz and awesome i just made a nice 
little list here on microsoft paint why i like   algo the staking rewards duh it's a pure proof 
of steak like i said you hold one algo i can't   highlight it because i'm not in that box you hold 
one algo and you automatically earn the rewards   that's it very very easy almost instant 
transactions uh one thing that really attracted me   to tron when i first started playing around with 
tron was how fast and instant the transactions are   if i was playing games or something with my buddy 
might have john i said hey can you spot me 50 tron   he could do it instantaneously boop there you go 
the only downfall i think with tron is that you   have to have like the energy and you have higher 
fees and the fees are going up and so on and so   forth which it's still pretty nice and instant 
but it's phenomenal that let's say right now if   you bought a thousand algo off of coinbase pro 
or if you exchanged it on finance or kucoin and   then you wanted to send it over to your algorand 
wallet the transaction is instantaneous as someone   that consistently compounds my rewards on the 
wallet whenever we hit about 1 to 1.5 algorand   it's literally before even the phone screen 
automatically locks after 30 seconds the   transaction is done complete everything is 
compounded and then of course we have incredibly   cheap fees and the reason why i say for now is 
because as algorand's price goes up we really   have to look into consideration of how much that 
fee goes for as of right now the ago fee is .001   per algo which is really really solid if you 
want to send you know basically to do your own   transaction that's a fraction that's a tenth of 
a penny if you want to do your compounding for   transaction because you have 1.5 aldo then 
it's going to cost you a 10th of a penny to   compound which you outweigh the rewards versus 
the actual fee now the reason why i say for now   is because i don't know or believe if they're ever 
going to reassess that fee we've seen tokens and   fees increase bitcoin's fees are insane time takes 
forever for the transaction to go through ethereum   fees are insane which is why bnb decided to start 
rising up because their fees are a lot lighter but   once b and b rise up to ethereum we might see 
another situation where they're not scaling as   they forecasted or wanted to and their fees might 
go up the reason why i say fees for right now   because some people do think that that 
point zero zero one just a compound   is hitting them pretty hard which 
again it's a tenth of a penny but if we   get to a point where we want to send a thousand 
algo and let's just say it's at a flat dollar   rate we're just playing this off a dollar it's 
gonna cost us one dollar to send a thousand   dollars or a thousand i'll go now that's not bad 
i mean where else can you send a thousand algo but   if we start getting into scenarios where albo is 
like five dollars a pop and then you know it's uh   it's five dollars a pop and you've got oh 
we'll just use my math here five dollars a pop   and i've got four thousand i'll go so that's going 
to give me 20 000 i'll go if i want to send that   20 000 algo somewhere else that's going to be a 20 
transaction now granted with 20 that's four algo   well whatever with that's in dollar terms so um 
with 20 000 20 might not be too bad to send but   anywho that's it for a nice little crash course 
on tokenomics uh it's not as in detail as i'm   assuming some of you guys would like but being in 
this crypto space and being that algo is starting   to catch on we have been meeting a lot of new 
people that this is their first time into crypto   they're very attracted to algo because they 
had the coinbase learn opportunity and they   saw the six percent apy and they started educating 
themselves and downloading the wallet so they're   very new in the crypto space and this is just 
a small crash course on it we can do an entire   course in an entire lesson but it's going to take 
too much longer and i don't think i can keep your   attention for that long or squeeze that video 
in before i have to return out to work today so   if you like the content please consider 
subscribing and turning on that bell   notification to stay up to date with the 
channel you can always reach out to me   on telegram discord twitter email leave a 
comment below i'm responding pretty quick   again if you like the content there's a qr code 
above my head and there's a wallet description in   the description for algorand any and all algorithm 
tips are greatly appreciated leave a comment in   the transaction and i'll give you a shout out 
on the next video say whatever you want to say   absolutely i appreciate it but otherwise thank you 
very much for being here thank you for watching   stick around i'm oprius 
we'll see you guys next time

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