Sorry about the delay, I left town for the weekend.
I wouldn't worry about the sinking algea pellets. Do you have other fish in the tank? What food do you feed them? Your blenny will not come up and eat at feeding, he will graze all day and night. If you feed you other fish with algea flakes enough will fall for the blenny, between that and the pods he will be one happpy guy.
Just keep an eye on him. How new is he? Mine stayed in one spot for almost 2 weeks then he started swimming/hopping around. If your guy seems lethargic he may just be acclimating, like I said it took mine almost two weeks. Do not keep trying to feed him if he is not eating in front of you, that will cause an amonia problem. Just be patient with him, he will begin to show you his ways.
Good luck, I promise to check more frequently.
CP