You can independently participate in Algorand's consensus by running your own node. In order to be eligible for rewards, your participating account must have a minimum balance of 30K Algo¹ staked in consensus (and a maximum balance of 70M Algo²).

By running an Algorand node you become an active contributor to this decentralized system. Your node, acting as an independent validator, helps prevent fraudulent activity and ensures only valid transactions are added to the blockchain. Node runners contribute to ensuring the robustness of Algorand infrastructure which benefits developers, applications, and users across the ecosystem.

Participating nodes also have voting rights on network proposals, allowing you to have a direct say in Algorand’s future development.

To run a participation node you need a system with at least 16GB of RAM, 8 vCPU, a fast SSD (100 GB NVMe or equivalent), and a good internet connection (ideally 1 Gbps). Learn more about running a node on Algorand, and get started running your node with NodeKit for Algorand, a simple-to-use terminal for installing, managing, and monitoring your own node.

<sub>1This was determined via community governance vote in Governance Period 10. This threshold encourages would-be node runners to bring online enough stake to propose blocks regularly without encouraging a huge number of nodes with small stake to join the network, which could have performance implications.

2This design encourages participants’ stake to be spread out rather than concentrated in very large amounts that could present a risk to the network if a single account were to go offline.</sub>

There are several options to participate in Algorand consensus and collect rewards without running your own node. These include:

1. Liquid staking: Liquid staking applications allow users to stake their Algo while maintaining liquidity. While each platform is unique, the typical process asks users to deposit Algo and mint new tokens that represent the ownership and value of the staked Algo and can be used across the DeFi ecosystem. Liquid staking providers on Algorand include Folks Finance, Tinyman, Messina, and CompX.
   
   Users can generally participate in liquid staking with any amount of Algo; 30,000 Algo minimum is not required.
   
   
2. Staking pools: Staking pools enable groups of individuals to participate in consensus together. Users are able to stake their Algo to a validator and get rewarded based on the rewards the validator receives. Staking pools on Algorand can be found on the Réti Pooling protocol. 
   
   Unique staking options are also available, such as staking via DEX liquidity pools on Pact (which requires committing Algo plus another asset).
   
   Users can generally participate in staking pools with any amount of Algo; 30,000 Algo minimum is not required.
   
   
3. Delegated staking: Delegated staking involves utilizing a third party to run a node on your behalf while your Algo remains in your wallet at all times. This provides an option for users who want to help secure the network and collect rewards, but don’t have the knowledge or resources to run their own node. Delegated staking solutions on Algorand include Valar.

DISCLAIMER: Through this section, you may be able to link to other websites which are not under the control of the Algorand Foundation. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not imply a recommendation nor endorse the views expressed therein.

Other options for staking Algo and collecting rewards include:

1. Kiln: A leading enterprise-grade staking platform, Kiln enables institutional customers to stake ALGO, and to whitelabel ALGO staking functionality into their offering.
   
   
2. CEX staking: Some centralized crypto exchanges enable their users to stake Algo and collect rewards directly within their applications. These offerings all differ via the exchange. Algo CEX staking options include:

• • Bitpanda: Bitpanda users can stake ALGO, help secure the network, and collect weekly rewards.

Consensus is a process that ensures the Algorand network is secure and resilient. Users stake their Algo into consensus through nodes – thousands of which are currently run by independent operators across the globe. The more Algo that is staked, the stronger the security of the network becomes.

Algorand leverages the pure proof-of-stake (PPoS) mechanism to achieve consensus. Unlike other proof-of-stake approaches, PPoS enables the user to maintain control of their Algo at all times.

Sophisticated cryptography including Verifiable Random Functions (VRF) and cryptographic sortition enable PPoS to maintain fairness and high security, and prevent collusion. A new block proposer and a new validator committee – both randomly selected in a private and non-interactive method out of all online users, with probability based on the users’ stake – are elected for each block.

Algorand’s PPoS approach achieves agreement on every block in under 3 seconds:

1. A VRF identifies potential block proposers, resulting in multiple “valid” block proposals from different proposers.
2. Each node that observed the block proposals propagates the “best” block – that is, the block with the lowest hash of the VRF proof.
3. Another VRF identifies a soft vote committee; that committee votes to reach agreement that the proposed block is indeed “best.”
4. Another VRF identifies a committee for certification votes; that committee votes to certify that the proposed block does not contain any violation of the protocol (i.e. double-spending, overspending, etc.)
5. The block is then written to the blockchain. 

Algorand’s staking rewards are given to users who actively contribute to network security by bringing their Algo online to participate in consensus. When an account’s proposed block is written to the chain, if the proposing account has at least 30,000 Algo then it will then be given an amount of Algo as a reward.

Rewarding block proposers is beneficial for the broader network as it incentivizes participation in consensus, driving greater decentralization and thus greater network security.

In the initial phase, staking rewards will be comprised of two components: 

1. Block fees – 50% of transaction fees will be paid out as block reward.
2. Algorand Foundation-funded supplementary bonus – Starting at 10 Algo per block, this bonus decays by 1% every millionth block. The Foundation has committed to providing bonus rewards for a period of approximately 24 months.

Anyone with an Algorand account with an account balance of at least 0.1 Algo can run a node. To run a participation node you need a system with at least 16GB of RAM, 8 vCPU, a fast SSD (100 GB NVMe or equivalent), and a good internet connection (ideally 1 Gbps). Learn more about running a node on Algorand, and get started today with NodeKit for Algorand, a simple-to-use terminal for installing, managing, and monitoring your own node.

While anyone can run a node as described above, there is a minimum of 30,000 Algo for a participating account to be eligible for staking rewards. This was determined via community governance vote in Governance Period 10 (GP10), and encourages would-be node runners to bring online enough stake to propose blocks regularly without encouraging a huge number of nodes with small stake to join the network, which could have performance implications.

There is a minimum of 30,000 Algo for a participating account to be eligible for staking rewards. This was determined via community governance vote in Governance Period 10 (GP10). This threshold encourages would-be node runners to bring online enough stake to propose blocks regularly without encouraging a huge number of nodes with small stake to join the network, which could have performance implications.

Users with fewer than 30,000 Algo can participate in consensus and be eligible for rewards by utilizing the various pooling and delegation applications built by the community.