Algorand Foundation has launched a groundbreaking staking rewards program following its latest consensus mechanism upgrade.
Validators on the Algorand blockchain will now receive real-time block rewards, starting at 10 ALGO per block, with a 1% decay every millionth block. Validators will also earn 50% of transaction fees from successfully proposed blocks.
Unlike traditional staking setups, Algorand’s program avoids punitive slashing and restrictive token lockups. Node runners maintain full access to their funds, while rewards are non-inflationary, ensuring the total ALGO supply remains unaffected.
John Woods, Algorand’s CTO, emphasized the program’s inclusivity and security, noting that advanced cryptography eliminates the need to delegate or lock user funds.
“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,”
Wood opined.
CEO Staci Warden highlighted the blockchain’s reliability and its role in securing critical infrastructure, from global supply chains to decentralized finance systems.
“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,”
Warden noted.
Participation options include liquid staking through platforms like Folks Finance and Tinyman, delegated staking via Valar, and running individual nodes. Algorand staking is set to expand to centralized exchanges later this year.
Meanwhile, last year, the Algorand Foundation played a pivotal role in advancing Nigeria’s blockchain development under the National Blockchain Policy introduced in 2023. Aligning with the policy’s focus on innovation and talent, the Foundation trained over 500 software developers and organized workshops in Plateau State for 50 more. Nigerian teams excelled at Algorand’s Global Hackathon, winning top spots in Consumer, Impact, and DeFi tracks. Additionally, a December 2023 policy dinner facilitated discussions with government leaders on integrating blockchain into public services, further driving the nation’s digital transformation.
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