🌎 Algorand Launches Real-Time Staking Rewards

Algorand Introduces Real-Time Staking Rewards for Validators

The Algorand Foundation has announced the launch of staking rewards on the Algorand blockchain network, offering real-time block reward payouts to validators. This development follows the recent upgrade to the network’s consensus mechanism, which was deployed earlier this week.

Staking Rewards Structure

According to the foundation, minimum rewards are set at 10 ALGO per block, with validators also receiving 50% of transaction fees in every block. However, block rewards will decrease by 1% after every one million blocks. This structure provides an incentive for validators to participate in the network and contribute to its security.

Algorand’s Growth and Trends

Algorand, a layer-1 blockchain launched in 2019, has experienced significant upward momentum in recent months. Although its price has retreated to key levels, metrics such as the number of active addresses, network transactions, and fees indicate a positive trend.

The Crypto Staking Market

The crypto staking market has grown rapidly since Ethereum’s merge in 2022, with key networks including Ethereum, Solana, BNB Chain, and Base. Algorand currently has over $213 million locked across various protocols, including those focused on real-world assets, derivatives, yield generation, and decentralized exchanges.

Unique Features of Algorand’s Staking Mechanism

The Algorand Foundation emphasized that ALGO staking rewards are distributed in real-time, with no risk of slashing or restrictive lockups. Unlike other proof-of-stake networks, nodes on Algorand have full access to their tokens at all times. Additionally, Algorand’s staking rewards are non-inflationary, meaning payouts do not affect the native token’s total supply.

“While staking on Algorand is highly inclusive, it’s highly secure as well,” John Woods, Chief Technology Officer at the Algorand Foundation, said in a statement.