Would like to know if the price of forging NFT in the Algorand blockchain (currently close to ten cents) is likely to increase in the near future 1-5 years. Thanks
Creating an NFT on Algorand is a simple transaction with a fee of 1000 microAlgos. You have to maintain a balance of .1 Algos for every ASA type you create but you do not lose those tokens.
There are already several services that depends on the current price, so I would not expect the nominal price ( in ALGOs ) to change. However, the fiat cost equivalent of that is almost certain to change over time.
Actually I hope, that if the price of Algorand will grow something like 1000 times, eg 1000 USD and there will be 1,000,000 transactions per day (as it is now), and the costs of running the infrastructure will be for example 10,000 USD per day, the fee in algo will be reduced, so that in current price 0,001 algo per transaction, it would generate 1,000,000 - 10,000 = 990,000 USD profit for algorand foundation or algorand inc per day?
If it would be decreased to 0,0001 when the price will reach eg 10 USD/Algo, and 0,00001 when it will reach 1000 USD/ALGO and 0,000001 when the algo price will be eg 100000 USD, it would be much more fair…
I am sure you know that the infrastracture is not that expensive, so please be open minded Algorand employees.
Just for illustration I would just add that if the price of algo would be 100000 USD/ALGO, with 1000000 transactions per day it would be still 100,000 - 10,000 USD per day profit for “non profit” algorand foundation
Also note that if the price of algo would go to 100,000 USD/algo, the market capitalisation would be 100000*10,000,000,000 = 1,000,000,000,000,000 USD (current BTC cap is 648,746,562,456) so it is something like 1500 times more than the current BTC capitalisation, so technically not possible…
However the transaction fee would be just 0,1 USD per transaction which is still good for usecases of micropayments… Also I think that the number of transaction in such case would be much higher then current 1mil, so I am really not worried about the securing the network with enough finance for servers…
The real question is, what does the algo foundation or algorand inc want to do with the burnt fees.
Btw, how did you calculate the 10 cents? By my calculation it is 0,001 Algo * 0.9257 ALGO/USD = 0,0009257 USD / token = 0,09257 USD cents per NFT
I agree that the party who wants to receive it has to pay 0,001 algo for optin, and you have then to pay 0,001 algo for transactions, but adding the transfer fee when you sell your nft does not count to forging the NFT? But even with those costs it does not add up to 10 cents per nft…
Have I missed something?
Thank you for your reply
Thank you for the comment.
Very clearly put and thank you for your comments.