Algorand Launches Inclusive Staking Program for Validators

The Algorand blockchain has introduced staking rewards for its validators following a recent consensus mechanism upgrade. The Algorand Foundation confirmed that validators now earn “block rewards” in real time for successfully proposing blocks on the Layer-1 blockchain. Starting at 10 ALGO per block, these rewards will decrease by 1% every million blocks. Validators also earn 50% of the transaction fees from the blocks they propose.

Algorand’s staking model stands out in the blockchain industry by offering real-time rewards without slashing penalties or restrictive token lockups. Unlike systems on Ethereum and Solana, Algorand allows validators to maintain full access to their funds while participating in network security. Its staking program is designed to avoid inflation, ensuring that rewards do not impact the total supply of ALGO tokens.

John Woods, CTO of the Algorand Foundation, highlighted the secure and inclusive nature of Algorand’s staking. “While staking on Algorand is highly inclusive, it’s highly secure as well. Algorand uses advanced cryptography that makes it unnecessary to put user funds at risk of penalty or loss – their ALGO does not need to be delegated to other parties or locked up to be used to secure the network,” Woods said.

The Algorand blockchain plays a critical role in various applications, ranging from securing corporate supply chains to enabling aid payments and tokenizing real-world assets. Staci Warden, CEO of the Algorand Foundation, emphasized the reliability and innovation behind Algorand. “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.”

Users can participate in the network and earn rewards through various options. DeFi enthusiasts can engage in liquid staking using platforms such as Folks Finance, Tinyman, Messina, and CompX. There is also a consensus staking pool on Pact and other pools available on Réti. Delegated staking is offered by Valar, with plans to make ALGO staking available on additional centralized exchanges later this year. For those preferring a hands-on approach, running an Algorand node is also an option.