☝️ Algorithmic stablecoins are cryptocurrencies that use algorithms and economic incentives to maintain a stable value. They differ from collateralized stablecoins by not relying on assets as backing.

How they work:

✅ Seigniorage mechanism: Creating and destroying tokens based on market demand.

✅ Reserve currency: Using another cryptocurrency for additional stability.

✅ Governance tokens: Allow holders to vote on protocol changes.

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