Why Algorithmic Stablecoins Need Control Theory, Not Just PID Loops

This article explores how advanced control theory and game-theoretic models can be applied to tokenomics for greater stability. It compares traditional PID controllers with modern methods like iLQR, AL-iLQR, and Sequential Convex Programming (SCP), showing how they optimize token supply under strict constraints. The discussion extends to strategic pricing, where token buybacks are framed as a Stackelberg game between reserves and token holders, revealing how incentive design can regulate markets and prevent inflation while ensuring equilibrium strategies.