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Algorand was founded back in 2017 by Silvio Micali who is a computer science professor at MIT. Algorand comprises two companies known as the Algo Foundation and Algorand Inc. These two groups develop and help update the network and continue to improve it as it grows. By April 2019, the team publicly launched the test net and by June 2019, they had launched the main net. The team says one of their main goals is to solve the “crypto trilemma.” This is where a blockchain can solve two out of the three desired traits: decentralization, scalability, and security. Silvio noted that using Delegated Proof of stake would create the best scalable blockchain, but it takes away the decentralized part. So, they combined that with POS and came up with Pure Proof of Stake, also known as PPOS.
if you hold your Algo tokens in the native wallet you will earn around 5-6 percent for now not having to lock them in for a set amount of time. All you have to do to claim them is make a transaction that will update the balance. Most people will send themselves 0 Algo, which incurs no fee but updates the Algo in their wallet. This means the percent you earn on your Algo can be compounded over the year instead of a flat rate. As there is less and less supply though, the staking rewards will start to lower until all 10 billion tokens have been distributed.
POS Token
Circulating Supply 8,175,357,734 ALGO
Total Supply 8,175,357,890 ALGO
Max Supply ∞
Algorand is a very open blockchain. They are simple to use and navigate. They are committed to helping reduce crypto's carbon footprint, not only by using a low-power-consuming chain but committing funds to pro-environmental organizations. The cost of using the blockchain is very cheap and quick. There is no need to stake tokens. You earn rewards just by holding Algo in an Algorand native wallet.
The percentage that Algorand Inc. and the Algorand Foundation hold is on the high side. This can be off-putting to a lot of people. The adoption rate of the chain is low, so it has not had a lot of growth. If Algorand becomes very popular and the network gets congested, the fees will go up to help curb the congestion. This chain has centralized nodes which are weak points if they are compromised.
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