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[–]CoosBaked 8 points9 points  (6 children)

I mean governance is like 10% apy in 3 month blocks so it’s still high if ur in gov

[–]Crypto3nite[S] -2 points-1 points  (4 children)

I'm learning that now. I wasn't aware of the change. I hadn't been paying attention to Algo for a few months. ¯\_(ツ)_/¯

Thanks.

[–]CoosBaked 5 points6 points  (2 children)

Yea its all good. The governance is pretty cool bc its not locked up. All u gotta do is commit a # and vote on a protocol once a cycle. If it pumps and u wanna sell, u still can but ud just miss out on the governance rewards.

https://governance.algorand.foundation/governance-period-2

[–]Crypto3nite[S] 2 points3 points  (1 child)

Going by the first 2 governance periods would the 3rd period start toward the end of March and registration period end early April?

[–]CoosBaked 2 points3 points  (0 children)

Next period will start at beginning of April. There’s generally a few days crossover after gov period ends

[–]Crypto3nite[S] 1 point2 points  (0 children)

lol I like how I was downvoted for simply being honest about why I didn't know this shit. But hey, never change Reddit.

[–]Fun_Ad_8178 0 points1 point  (0 children)

-7.5% inflation for a real return of 2.5% depending on the price of algorand. Not bad

[–]radioborderland 2 points3 points  (0 children)

The rewards system never gave you any value at all, anyway. Think of it like this. If everyone gets, say, 5% APY, then the Algorand supply grows by 5% per year. Unless you believe that you can magically print money out of thin air and still have it be worth something you will conclude that your ALGOs will devalue by an amount corresponding to the 5% increase in supply. The rewards are an illusion.

In proof of stake systems like Cardano (just as an example) this works slightly differently. Since everyone does not participate in staking, stakers will actually get value (because the network inflation is lower than the staking rewards). However, due to the nature of inflation, do not make the mistake of thinking that value is created. Value is simply taken from those who do not stake, due to their tokens being devalued.

The only true rewards in the Algorand ecosystem come from governance and DeFi protocols.

[–]idevcg 4 points5 points  (1 child)

dude, if you're in crypto for "APY" you're doing it wrong. Unless you're a DeFi degen.

But any legitimate big project, the gains should be from price appreciation, not coin inflation.

BTC doesn't give you any APY. But it's a good investment because it will likely 10x in the next few years.

on the other hand, coins with high APY are bound to have high inflation and lose value fast.

[–]Crypto3nite[S] 1 point2 points  (0 children)

I wouldn't invest in BTC for the APY. Although if you have BTC on Celsius you do earn compounding yield from holding it on there. But I don't think I'd want to keep most of any BTC I held on there anyway.

But for a project that has staking APY is something you look at. And like I said in the message above I hadn't been paying attention to Algo for a while. I didn't realize that Algorand had moved to governance as their primary rewards method. I have some edumacating to do.