This research paper by Algorand discusses a proposal to modify the Algorand protocol to incentivize network participation by rewarding block production with Algo, the network’s native token. The solution aims to enhance network security by increasing the amount of actively staked tokens and to address current challenges such as absenteeism and stake concentration through a combination of fee-based and supplementary incentives. The proposed changes include a payout function for rewards, measures to prevent gaming the system, and considerations for maintaining the economic viability of the incentives.
