A New Distribution Strategy: Balancing Growth and Stability
Atto’s protocol has a fixed supply of 18 billion coins (all pre-minted), so no new Atto can be created by consensus and there is “no inflation” built into the system. In practice, however, tokens enter circulation through our various distribution programs (mining, faucet, contributions, etc.), so circulating supply rises over time. For example, Atto currently releases 5,000 tokens per minute via Folding@Home rewards, which equates to roughly 1.2% of total supply per month. At around 6% circulating today, the planned release pace (≈1.2% of total supply per month ≈ 15% annualized) implies a much larger increase relative to today’s circulating base —on the order of ~250–300% over a year—until circulation grows. In other words, distributing ~15% of total supply in year one is roughly 3× the current circulating supply. This practical “inflation” helps bootstrap use, but it also means many newly-rewarded users may immediately sell, creating downward price pressure.
In other words, Atto faces a distribution dilemma. We want to put tokens in people’s hands quickly – to build trust in the network and encourage real usage – but rapid distribution fuels selling pressure. To manage this, we’ll act similarly to how fiat is managed: add liquidity when demand rises, and soften supply when demand falls. In practice, that means injecting extra buy support if the market is climbing, and carefully removing liquidity if it’s dropping. In traditional finance, liquidity providers ensure stable crypto markets by keeping buy/sell orders in place and tight spreads. We intend to follow that lead: using some of the gains from high prices to seed buy orders, and pulling back when the market cools. We expect this strategy to reduce the amplitude of “boom–bust” swings;
How Price Forms and Why Volatility Hurts
At its core, price is set by supply versus demand. If supply grows faster than demand, price tends to fall; conversely, if demand surges with limited supply, price spikes. By controlling one side of this equation – namely, the supply (emission rate) – we can influence stability. A larger, steady supply of coins typically reduces price volatility, whereas an extremely tight or fixed supply amplifies it. However, we cannot control demand or exogenous events; these measures aim to moderate—not fix—price swings.
Wide swings can scare off exactly the long-term users and businesses we want. Past altcoins provide cautionary tales: Dash’s price, for instance, surged almost 9,000% in 2017 (from ~$20 to an all-time high around $1,700) and then crashed over 90% in 2018. Nano (formerly RaiBlocks) rocketed from about $3 to $37 in a matter of weeks during 2017, then collapsed soon after. Cardano’s ADA similarly hit roughly $1.16 in early 2018 before plunging to ~$0.04 by year’s end. These roller-coaster charts – a steep climb followed by a steep fall – are exactly what we want to avoid. Illustrated below is a symbolic example of such volatility: rapid spikes and crashes tend to attract speculators and FOMO traders, but they drive away cautious, long-term adopters.
Reducing Inflation to Keep Prices Steady
We have two levers to balance supply and demand: distribution (inflation) and liquidity management. By dynamically adjusting miner rewards, we directly control one key inflation variable. The plan is as follows:
Weekly adjustment rules (simple):
- Baseline: 5,000 Atto/min (Folding@Home).
- When price falls: For each full −1% over the last 7 days, cut one step on this ladder: 5k → 4k → 3k → 2k → 1k → 500 → 250 → 100 (floor). Example: −3% week ⇒ 5k → 2k (three steps).
- When price rises: If the 7‑day change is ≥ +1%, raise one step max for the next week, regardless of the size of the increase. Example: +3% week at 2k ⇒ 3k (one step).
- Flat band: If the 7‑day change is between −1% and +1% (inclusive), no change.
- Timing: We measure the 7‑day change once per week and apply the new rate for the entire following week.
- Ceiling/Flex: We may temporarily exceed 5k/min later to meet long‑term issuance targets;
The asymmetry (faster cuts than increases) is intentional to dampen dramatic swings.
This mechanism lets us “soften” crashes by throttling new sell pressure, while still rewarding growth. It is a policy tool, not a promise of outcomes; market conditions and external venues can still produce large moves. Importantly, we have the flexibility to exceed 5,000/minute in future weeks if needed to hit our long-term targets. Our goal remains roughly 15% issuance in the first year of the total supply through folding@home and faucet; note this corresponds to a much higher growth rate relative to the current circulating supply in the current phase. Any periods of supply cuts can later be offset by modest rate increases.
For now, weekly adjustments are computed and applied manually; minor timing variance may occur until full automation.
Stability Enables Atto as Money
The whole point of this strategy is to make Atto usable money, not just a speculative asset. Stable, predictable prices mean people and businesses can hold and spend Atto without worrying about sudden losses of value. We believe extreme volatility undermines cryptocurrencies as a medium of exchange. By contrast, a price that only moves within a narrow band encourages real usage. In effect, we’re aiming to meet ordinary users where they are – on their smartphones and point-of-sale apps – with reasonable confidence that their balance won’t evaporate overnight. Imagine someone checking Atto’s value on their phone and seeing only mild, controlled fluctuations. Greater stability is what can make Atto feel more like cash and less like a purely speculative asset.
Additionally, stable prices also avoid the pitfalls of early FOMO. When an altcoin rockets then crashes, it draws mostly traders hoping to flip gains, not genuine adopters. We want Atto to build gradually on real usage. Adding liquidity and restraining distribution are tools to “keep the ship steady” and inspire confidence in the network and Atto team.
A Strategic Shift: Long-Term Focus Over Hype
Finally, this announcement marks a conscious change in our approach. Earlier plans for aggressive promotions and giveaways ran the risk of cannibalizing price stability. We recognize now that free coins and big marketing pushes could flood the market and destabilize value. Instead, we will prioritize Atto’s behavior as cash. That doesn’t mean no marketing at all, but rather more measured campaigns that don’t overshoot the market’s capacity. Our aim is to build genuine, long-term adoption: stable prices, organic growth, and a broad base of users and contributors.
In summary, Atto’s protocol remains zero-inflation by design, but we face practical circulating inflation from our distribution. By using a dynamic emission schedule and smart liquidity management, we can take control of one leg of the price equation. This lets us smooth out volatility, reduce speculative FOMO, and keep Atto on track as a reliable digital currency. Stable prices will encourage usage, not just trading, which is essential if Atto is to function as money.
Disclosure & Risk Notice
- This strategy is an attempt to reduce volatility, but there is no guarantee prices will be stable.
- Cryptocurrency markets are risky. Prices can go down as well as up, and you may lose money.
- Past performance and policy settings do not guarantee future results.
- Emission targets and parameters (e.g., step thresholds and per‑minute rates) may be adjusted over time based on distribution progress and market conditions.
- Liquidity operations may be added, reduced, or paused depending on market conditions and treasury constraints.
- External venues and macro events are outside our control and can cause large moves.
- During the initial phase, weekly emissions adjustments are performed manually; execution timing may vary slightly until automation is in place.
- Nothing in this article constitutes financial, legal, or tax advice. Please do your own research.
