I’m very impressed with the Algorand technology. Just one things that keeps bothering me about the project: the lack of transparency and clarity on transaction fees and node incentives.
I have gone through the developer portal and already asked this multiple times on Discord, Reddit and this forum but never received a satisfying answer, I will ask one last time and would love if someone from the foundation could actually answer this.
As far as I understood all transactions are currently sent to a fee sink. Who controls this address? What happens with this money? Doesn’t this make the protocol rather centralized if one address controls these funds? Why not transfer the yields to relay node operators as an incentive to run? What will be the incentive for relay nodes to keep running once the rewards pool is empty?
How does Algorand intend to keep transaction fees low and stable in the long term? What if the price skyrockets? (for example: if Algorand where to reach Ethereum’s market cap, transaction fees would be around 5 cents per transaction, which is okay, but too high for some of the envisioned use cases and rather high compared to competitors like Ripple or IOTA. Unstable transaction fees are a huge barrier to mass adoption.