Algorand Unveils New Staking Rewards: What You Need to Know

Validators on Algorand earn 10 ALGO per block, with rewards reducing gradually every one million blocks.
Unique staking features include no slashing penalties, real-time payouts, and unrestricted token access for users.
With $213M staked, Algorand sees growing adoption, supported by inflation-free rewards and multiple staking options.

The Algorand Foundation has unveiled new changes to the staking rewards program. This comes on the back of improvements to the blockchains consensus algorithm that were implemented earlier this week. In the new program, validators will be paid at least 10 ALGO per block validated. Furthermore, half of the transaction fees or 50% in every block will be given to the validators. However, starting from one million blocks, the rewards will be reduced by 1% in every block, which will make the system to have controlled rewards.

Algorands Rising Adoption

Algorand is a layer-1 blockchain that has been launched in 2019 and has recently observed the increased activity and adoption. Even though market prices have been unstable, other meaningful parameters like active addresses, transactions per day, and network fees still seem to be rising. This points to enhanced uptake of the platform for different purposes.

Staking has become more popular in the world of cryptocurrency, especially after Ethereums shift to proof-of-stake in 2022. Algorand now joins other major networks such as Ethereum and Solana, which are luring users with the particular staking model. Data from DeFiLlama reveals that more than $159.09 million worth of assets is staked across Algorand-based protocols.

Source: DeFiLlama

Algorands staking model is different and has the following advantages. It must also be pointed out that rewards are given in real-time, so participants get the compensation shortly after the task completion. The program also removes slashing penalties whereby validators are not penalized for technical faults or offline time. Also, tokens are not locked, meaning that users can always control their assets at any time they want.

Convenient Staking Options

Algorand is not like many scoring systems as the rewards it offers do not come from inflation. This implies that the total token supply of ALGO does not increase with reward distributions. All these are to ensure that the participants have a safe and convenient way of staking in the system.

Staking Algo is not a problem as there are several ways through which the holders can engage in staking. Some of them are Tinyman, Folks Finance, Messina, and CompX for liquid staking. For those who like pooled or delegated staking there are also services such as Pact and Valar. The foundation will also roll out the capability to enable staking via the centralized exchanges sometime in the current year.

This updated staking program shows that Algorand is dedicated to promoting development and stability of the ecosystem. Through enhancement of its consensus mechanism and provision of easy staking methods, Algorand is well placed to be a major player in the growing blockchain market.

Text source: TronWeekly

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