From Algorand Governance to Staking: A New Rewards Guide for ALGO Holders
The Algorand network is transitioning from governance rewards to staking rewards after the final governance period (GP14), offering a more flexible and accessible way to earn rewards.
Key Benefits of Staking:
- No lock-up periods - access your Algo anytime
- Simple technical requirements for node runners
- No slashing penalties for staked Algo
- Ineffective nodes are removed automatically without losing funds
Staking Requirements: The minimum requirement is 30,000 ALGO to collect rewards directly. However, smaller holders can participate through liquid staking or pooling protocols.
How to Start Staking:
For holders with less than 30,000 Algo:
- Access the Stake Portal in Pera wallet
- Choose your preferred staking provider
- Deposit Algo and begin earning rewards
For holders with more than 30,000 Algo:
- Option A: Use the same process as above
- Option B: Run your own node using Algorand NodeKit
Future of Governance:
- General governance votes will continue in a more fluid, referendum-style format
- xGov program will relaunch focusing on retroactive grants for ecosystem builders
- An xGov council will evaluate proposals
- Algorand Foundation will initially manage the platform before community transition
- Foundation will retain emergency veto power
Important Note: Do not move funds from governance until after receiving GP14 rewards.
By participating in staking, you'll help secure the network while earning rewards through a more flexible system. Solo stakers maintaining control of their Algo will retain voting rights in future governance sessions.
Through this transition, Algorand aims to strengthen network security while providing greater accessibility and flexibility for participants.
All preceding content is for informational purposes only. Conduct your own research or consult qualified professionals before making any financial decisions. The Algorand Foundation makes no warranties about the accuracy or completeness of this information and is not liable for any losses or damages arising from its use.
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