I wanted to raise the topic for discussion about the requirement to have minimum of 1 ALGO Balance to opt into an ASA Asset. I this this could be a barrier for adoption of various use cases.
As per the offical Algorand Website, the use cases and different types of coins where ASA can be used are
Reference link - https://www.algorand.com/technology#ALGORAND-STANDARD-ASSETS
Many of these use cases such as loyalty points, games points, system credits etc require a hosted wallet solution for a seamless UX. For example in case of Loyalty Points use case; The loyalty point will be an ASA, the app owner will create a new Algo Wallet for every user and in order to opt into the loyalty point ASA, the app owner will have to airdrop 1 Algo or ask the user to top up 1 Algo ( the later option is a barrier for UX point of view). assuming the app owners does the Algo Balance top up and opt it in the background seamlessly for a new user sign up. In such use cases if let’s say we onboard 10,000 users. The cost of onboarding as per price of $1.41 at the time of writing this topic will be 14,100, if let’s say the price increases to $10, the costs for onboarding 10,000 users for any app will be 100,000. The increase in price can actually lead to decrease in adoption.
I suggest we should change the minimum
Algo Balance requirements for opting in an ASA from 1 Algo to same as that transaction fees which is 0.001