Staking Rewards have arrived on Algorand
Staking rewards have arrived on Algorand!
Stake your Algo to help secure the network and collect rewards.
Algorand is designed for decentralization. Its Pure Proof-of-Stake consensus mechanism makes participation extremely accessible, and you can collect rewards for running nodes or staking Algo – doing your part to secure the network.
Algorand Metrics
| Metric | Value | Description |
|---|---|---|
| Mainnet Nodes | 2,702 | The estimated number of nodes currently active on the Algorand mainnet. |
| Online Stake | 1.98 BALGO | The total amount of Algo actively participating in consensus. This is fetched from the ledger state delta and updated every 10 rounds. |
| Staking Rewards Rate | 4.87% | The annualized staking rewards rate, calculated from the current block incentive, average round time, and total online stake. |
| Online Accounts | 1,447 | The number of accounts currently registered as online and participating in consensus on the Algorand network. |
| Online Accounts Over 30K | 1,333 | The number of online consensus-participating accounts holding at least 30,000 Algo — the minimum stake required to receive block proposal rewards. |
Why stake on Algorand
Unlike other blockchains, Algorand is designed to guarantee security through advanced cryptography and does not rely on economic disincentives to secure the network.
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- No slashing risk: Staked Algo is not subject to slashing. Instead, ineffective nodes are algorithmically removed from consensus and simply forgo rewards.
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No lockup period: On Algorand, independent validators maintain control of their Algo at all times. Staked tokens remain in a user’s wallet while securing the network as part of consensus.
Low cost: Running a node on Algorand is extremely cheap. All you need is a computer with 16GB of RAM, fast SSD, and 1 Gbps internet connection.
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- Real-time rewards: Rewards are paid out as each block is finalized, every 2.8 seconds, and your stake automatically compounds, instantly increasing your voting power.
Algo staking options
A path to participation for every user
Participating accounts must stake a minimum of 30,000 Algo* to be eligible for rewards. Users with lower Algo account balances can still participate—and collect rewards—through liquid staking and stake pool applications available across the Algorand ecosystem.
*This minimum threshold was determined via community vote in Governance Period 10.
Solo staking (min. 30K Algo)
You can independently participate in Algorand's consensus by running your own node. In order to be eligible for rewards, your participating account must have a minimum balance of 30K Algo1 staked in consensus (and a maximum balance of 70M Algo2).
By running an Algorand node you become an active contributor to this decentralized system. Your node, acting as an independent validator, helps prevent fraudulent activity and ensures only valid transactions are added to the blockchain. Node runners contribute to ensuring the robustness of Algorand infrastructure which benefits developers, applications, and users across the ecosystem.
Participating nodes also have voting rights on network proposals, allowing you to have a direct say in Algorand’s future development.
To run a participation node you need a system with at least 16GB of RAM, 8 vCPU, a fast SSD (100 GB NVMe or equivalent), and a good internet connection (ideally 1 Gbps). Learn more about running a node on Algorand, and get started running your node with NodeKit for Algorand, a simple-to-use terminal for installing, managing, and monitoring your own node.
1This was determined via community governance vote in Governance Period 10. This threshold encourages would-be node runners to bring online enough stake to propose blocks regularly without encouraging a huge number of nodes with small stake to join the network, which could have performance implications.
2This design encourages participants’ stake to be spread out rather than concentrated in very large amounts that could present a risk to the network if a single account were to go offline.
Liquid staking (any Algo amount)
Liquid staking applications allow users to stake their Algo while maintaining liquidity. While each platform is unique, the typical process asks users to deposit Algo and mint new tokens that represent the ownership and value of the staked Algo and can be used across the DeFi ecosystem.
Staking pools (any Algo amount)
Staking pools enable groups of individuals to participate in consensus together. Users are able to stake their Algo to a validator and get rewarded based on the rewards the validator receives.
Unique staking options are also available, such as staking via DEX liquidity pools (which requires committing Algo plus another asset).
Delegated staking (min. 30K Algo)
Delegated staking involves utilizing a third-party to run a node on your behalf while your Algo remains in your wallet at all times. This provides an option for users who want to help secure the network and collect rewards, but don’t have the knowledge or resources to run their own node.
Staking applications on Algorand
Explore applications for liquid staking, staking pools, delegated staking, and more.
xAlgo Liquid Staking
Stake ALGO with Folks and mint xALGO to collect yield, get points, and unlock a rich ecosystem of utility. Use xALGO as collateral in Folks’ lending markets, deposit it in Lending Pools, trade on partner DEXs or spend it in other Algorand apps.](https://app.folks.finance/liquid-staking)
Tinyman Liquid Staking
Stake your ALGO on Tinyman to collect rewards and receive tALGO, a liquid token for extra yield through re-staking and liquidity pools. Enjoy flexible asset management—no lock-ups, no penalties for unstaking.](https://app.tinyman.org/liquid-stake)
Pact’s consensus-compatible liquidity pools
On Pact, Algo-paired liquidity pools (LPs) with 30,000+ Algo automatically participate in consensus. Join an LP to help secure the Algorand network while collecting additional rewards.](http://pact.fi/)
Myth Finance
Use dualSTAKE on Myth Finance for liquid staking with ASA Rewards.](https://myth.finance/)
Retí Pooling with Nodely
Pool your Algo with others to participate in consensus. Stake your Algo to a Validator and collect rewards based on the rewards the Validator receives.](https://reti.nodely.io/)
Reti Pooling with Valar
Pool your Algo with others to help secure the network and earn rewards. Alongside pooling, Valar gives you a voice in xGov. You can share your xGov vote preference with your pool operator. The pool owner collects these preferences and submits a group vote on behalf of all participants, ensuring every contribution matters.](https://reti.valar.solutions/)
Valar
Peer-to-peer staking involves utilizing a third-party to run a node on your behalf while your Algo remains in your wallet at all times.](https://stake.valar.solutions/)
Kiln
A leading enterprise-grade staking platform, enabling institutional customers to stake ALGO, and to whitelabel ALGO staking functionality into their offering.](https://www.kiln.fi/protocols/algorand)
Bitpanda
Bitpanda users can stake ALGO, help secure the network, and collect weekly rewards.](https://www.bitpanda.com/en)
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Bitrue
Bitrue offers flexible ALGO staking plans where users collect rewards while retaining control to unstake anytime.](https://www.bitrue.com/flexible-staking/algo)
Gate.io
Gate.io users can stake ALGO, help secure the network, and collect rewards.](https://www.gate.io/staking/ALGO)
P2P.org
Institutional-grade staking solutions designed for speed, security, and scalability. With a non-custodial platform, your ALGO tokens remain fully under your control while providing automated reward distribution, robust API integrations, and SOC 2 Type I security standards.](https://p2p.org/economy/algorand-staking-guide/?_gl=1*1sqe673*_up*MQ..*_ga*MTI0OTkxNjkwMi4xNzQ2NjI2Njgz*_ga_KGHZN80HE4*czE3NDY2MjY2ODIkbzEkZzEkdDE3NDY2MjcwODIkajAkbDAkaDk0MTYzMDc2&utm_source=x&utm_medium=post&utm_campaign=Algorand_07.05)
FAQ
About Algorand staking rewards, consensus participation, node running, and more.
How does consensus work on Algorand?
Consensus is a process that ensures the Algorand network is secure and resilient. Users stake their Algo into consensus through nodes – thousands of which are currently run by independent operators across the globe. The more Algo that is staked, the stronger the security of the network becomes.
Algorand leverages the pure proof-of-stake (PPoS) mechanism to achieve consensus. Unlike other proof-of-stake approaches, PPoS enables the user to maintain control of their Algo at all times.
Sophisticated cryptography including Verifiable Random Functions (VRF) and cryptographic sortition enable PPoS to maintain fairness and high security, and prevent collusion. A new block proposer and a new validator committee – both randomly selected in a private and non-interactive method out of all online users, with probability based on the users’ stake – are elected for each block.
Algorand’s PPoS approach achieves agreement on every block in under 3 seconds:
- A VRF identifies potential block proposers, resulting in multiple “valid” block proposals from different proposers.
- Each node that observed the block proposals propagates the “best” block – that is, the block with the lowest hash of the VRF proof.
- Another VRF identifies a soft vote committee; that committee votes to reach agreement that the proposed block is indeed “best.”
- Another VRF identifies a committee for certification votes; that committee votes to certify that the proposed block does not contain any violation of the protocol (i.e. double-spending, overspending, etc.)
- The block is then written to the blockchain.
Learn more about Pure Proof-of-Stake and consensus on Algorand.
What are staking rewards on Algorand?
Algorand’s staking rewards are given to users who actively contribute to network security by bringing their Algo online to participate in consensus. When an account’s proposed block is written to the chain, if the proposing account has at least 30,000 Algo then it will then be given an amount of Algo as a reward.
Rewarding block proposers is beneficial for the broader network as it incentivizes participation in consensus, driving greater decentralization and thus greater network security.
How much are the staking rewards?
In the initial phase, staking rewards will be comprised of two components:
- Block fees – 50% of transaction fees will be paid out as block reward.
- Algorand Foundation-funded supplementary bonus– Starting at 10 Algo per block, this bonus decays by 1% every millionth block. The Foundation has committed to providing bonus rewards for a period of approximately 24 months.
Can I run my own node?
Anyone with an Algorand account with an account balance of at least 0.1 Algo can run a node. To run a participation node you need a system with at least 16GB of RAM, 8 vCPU, a fast SSD (100 GB NVMe or equivalent), and a good internet connection (ideally 1 Gbps). Learn more about running a node on Algorand, and get started today with NodeKit for Algorand, a simple-to-use terminal for installing, managing, and monitoring your own node.
While anyone can run a node as described above, there is a minimum of 30,000 Algo for a participating account to be eligible for staking rewards. This was determined via community governance vote in Governance Period 10 (GP10), and encourages would-be node runners to bring online enough stake to propose blocks regularly without encouraging a huge number of nodes with small stake to join the network, which could have performance implications.
Is there a minimum amount of Algo required to stake and get rewards?
There is a minimum of 30,000 Algo for a participating account to be eligible for staking rewards. This was determined via community governance vote in Governance Period 10 (GP10). This threshold encourages would-be node runners to bring online enough stake to propose blocks regularly without encouraging a huge number of nodes with small stake to join the network, which could have performance implications.
Users with fewer than 30,000 Algo can participate in consensus and be eligible for rewards by utilizing the various pooling and delegation applications built by the community.
./nodekit for Algorand
NodeKit offers a streamlined experience to download and install the Algorand core node, register participation keys, and monitor your node's performance - all in one simple-to-use terminal.
Get started with NodeKit for Algorand ->
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