Algorithmic stablecoins development maintain their peg using code-based supply adjustments instead of collateral. When the token price rises above $1, the protocol mints more coins; when it drops below, it burns supply or incentivizes buying. Examples include AMPL and DAI (partially). This approach reduces the need for reserves but increases risk during market volatility. Algorithmic models require continuous monitoring, community governance, and smart contract fail-safes to remain effective and stable.