The Algorand Foundation can today announce that Staking Rewards, one of the industry’s most inclusive, technically advanced, and user-focused rewards programs, is now live on Algorand mainnet. Following the recent protocol upgrade (Algorand 4.0), the network now distributes rewards in real time to validators who propose blocks to the blockchain.
To find out how to take part in Staking Rewards, click here!
Staking Rewards strengthen Algorand’s network security while maintaining the principles of accessibility for users and decentralization of the chain. Unlike traditional staking systems, this implementation removes barriers such as token lockups and slashing penalties, allowing participants to maintain access to their assets while contributing to network security.
A New Approach to Network Participation
Algorand’s staking rewards program establishes a sustainable model for network participation. Validators now receive 10 ALGO for each successfully proposed block, with rewards decreasing by 1% every millionth block. The program also allocates 50% of transaction fees from proposed blocks to validators.
Algorand’s Staking Rewards are at the center of the platform’s evolution to ‘Algorand 4.0.’ Increased node running incentivization, as well as multiple paths to participation, will help bolster the network and enable it to continue adding robust use cases.
“Any time we interact with a blockchain - whether through a dApp or an enterprise platform - that action is made possible because of the network running it,” said Staci Warden, CEO of the Algorand Foundation, in a press release regarding the news.
“The nodes on the Algorand blockchain secure corporate supply chains, online credentials, and digital identities. They make it possible to send aid payments around the world and to tokenize and exchange real-world assets, all in a decentralized system. The Algorand blockchain does not fail. The Algorand blockchain will never fork. And, now, Algorand will also offer inclusive, robust, and future-proofed staking.”
Multiple Paths to Participation
Staking Rewards opens multiple options for participation, accommodating different levels of technical expertise and investment. For participants with 30,000+ ALGO, running a node provides the most direct form of network engagement. This requires lower technical resources compared to other blockchains and offers full reward potential.
Applications across the Algorand ecosystem expand accessibility through other participation methods. Liquid staking solutions from Folks Finance, Tinyman, Messina, and CompX allow users to maintain asset flexibility while participating in consensus. These services provide representative tokens, enabling continued participation in DeFi activities while earning staking rewards.
Staking pools are available through Pact, which enables automatic consensus participation for liquidity pools holding more than 30,000 ALGO. The Réti protocol offers another pooling system, spreading operational responsibilities while maintaining trustless operation.
Valar provides delegated staking services for users who prefer their nodes to be managed while retaining custody of their tokens.
To find out more about the different ways to stake on Algorand, read here.
Offering a variety of participation methods aligns with the Algorand ecosystem’s commitment to network decentralization. By supporting multiple participation paths, we strengthen network security while making staking accessible to our entire community.
Building Towards Algorand 4.0
The launch of staking rewards marks a significant step in Algorand's growth. Staking Rewards is part of a consensus mechanism upgrade and ushers in Algorand 4.0. The impact of Staking Rewards will be beneficial for the chain itself and those helping secure the network.
Participants interested in joining the network can access detailed technical documentation for node running, as well as access NodeKit, a command-line tool for Algorand node running. Alternatively, users can follow simple video tutorials for other ways to take part in Staking Rewards.