Vesting Question

I think Algo manages vesting/tokenomics better than other projects. Though I’m far from an expert in understanding this stuff, my understanding is that ALGOs vesting is automated and designed to prevent wild fluctuations in price. Yes, over time more coins are entering the market (which leads to inflationary pressure); however, every crypto seems to deal with this same problem, where founders and early backers hold millions (billions?) of coins that they can release onto the market at any point (see ADA).

ALGO’s automated vesting schedule means that there is more price stability and a lesser likelihood that a single holder can disrupt the market by dumping, for instance, 10 million coins at once.

Most of the ALGO concerns about tokenomics and accelerated vesting, I believe, are overstated. This coin favors stability—which means you probably won’t see a while jump (or loss) of 50% in one day.

This is a double-edged sword, as it favors institutional backers who want slow, methodical gains and disfavors retail investors who put in $50 and are trying to turn it into $50,000. That ain’t gonna happen with ALGO. However, for an institutional backer who puts in $5M, it is entirely reasonable to suspect that ALGO will quadruple it’s market cap by the end of 2022, meaning the $5M would turn into $20M. This is the type of return and certainty that sophisticated investors are looking for.

/r/AlgorandOfficial Thread