Algorand Launches Inclusive Real-Time Staking Rewards Program
The Algorand Foundation has launched a real-time staking rewards program for its Layer-1 blockchain, aiming to make participation more accessible to a wide range of users. Under the new system—introduced this week following a consensus mechanism upgrade—validators now earn “block rewards” of 10 ALGO per block, decreasing by 1% every million blocks, along with 50% of transaction fees for successfully proposing blocks.
According to the foundation, Algorand’s approach to staking stands out for its inclusivity. Unlike the staking models on some other blockchains, Algorand does not impose “slashing” penalties or require token lockups, allowing node operators to maintain full access to their funds. Furthermore, the program is designed to avoid inflation, meaning it does not increase ALGO’s overall supply.
John Woods, Chief Technology Officer of the Algorand Foundation, highlighted the security measures underpinning the new system. “While staking on Algorand is highly inclusive, it’s highly secure as well,” Woods said. “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 secure the network.”
Staci Warden, CEO of the Algorand Foundation, underscored the blockchain’s focus on reliability. “Any time we interact with a blockchain—whether through a dApp or an enterprise platform—that action is made possible because of the network running it,” she said. “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.”
Participants can take part in securing the network and earning staking rewards through several methods. DeFi users may opt for liquid staking on protocols such as Folks Finance, Tinyman, Messina, and CompX. A consensus staking pool is available on Pact, while additional staking pools can be found on Réti. Delegated staking is offered by Valar, and further centralized exchanges plan to support ALGO staking later in the year. Users can also run their own Algorand node to directly participate in block validation.
The introduction of staking rewards caps a year of notable achievements for the blockchain, which reached its two billionth transaction in July amid growing enterprise and DeFi usage. The developer community has also expanded significantly, according to data from Electric Capital. Several startups, including Finboot and ZTLment, have migrated from other chains—such as Ethereum—to Algorand, citing development speed and efficiency improvements of up to 600%.
By launching real-time, inclusive staking rewards, Algorand seeks to further strengthen its network and broaden participation among both individual node operators and larger-scale enterprise users. Foundation representatives expect this non-inflationary model, combined with the network’s established reliability, to support continued growth and innovation on the sustainable, carbon-efficient blockchain.