As Algorand transitions from governance rewards to staking rewards, governors are presented with a new opportunity. With the final governance rewards period (GP14) wrapping up, you will soon be able to stake your Algo in the new mechanism.
Why staking makes sense now
The shift to Staking Rewards prioritizes rewarding ongoing network security over rewarding periodic voting. This evolution strengthens Algorand's infrastructure, enabling continuous participation and greater flexibility, rather than quarterly commitments.
Staking for network security has several advantages:
-
- Complete flexibility: Access your Algo anytime without lock-up periods
- Technical simplicity: Basic computing resources are sufficient for node runners
- No performance penalties: Staked Algo is not subject to slashing; ineffective nodes are algorithmically removed from consensus and simply forgo rewards
You don't need technical expertise, or to put forward more Algo than you want to, in order to benefit. The 30,000 ALGO minimum for an account to collect rewards does not limit smaller participants who can join through liquid staking or pooling protocols.
How to stake
Follow these easy steps to get staking.
If you have less than 30,000 Algo:
- Head to the Stake Portal within Pera wallet (download Pera here)
- Select the staking provider that best fits your needs
- Deposit your Algo and start collecting rewards
If you have more than 30,000 Algo:
A You can follow the steps above
or
B You can get started running own node by using Algorand NodeKit, or explore other options and more details here.
The future of governance
General governance votes will still exist but the governance periods will be more fluid, in a format similar to referendums.
The xGov program will relaunch this year with a renewed focus on retroactive grants for ecosystem builders. The soon-to-be-formed xGov council will evaluate proposals against program terms, with final approval power remaining with xGov participants.
The Algorand Foundation will initially administer the platform before transitioning this responsibility to the community, maintaining emergency veto power only for critical situations.
With governance rewards coming to an end, now* is a good time to make plans for staking your Algo. The transition supports the network's security needs and empowers you with greater flexibility, and stakers who retain control over their Algo (ie. solo stakers) will be able to vote in future general governance sessions.
By participating in Algorand's staking system, you contribute to a more decentralized, secure blockchain ecosystem while collecting rewards through a more accessible, flexible mechanism.
*Note: you should not move your funds out of governance until after receiving your GP14 rewards.
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