By running an Algorand node or staking Algo in consensus you become an active contributor to this decentralized system and play a key part in network security. This is because as the number of consensus nodes in the network increases, decentralization–and thereby, security–is also increased.

Nodes, acting as independent validators, help prevent fraudulent activity and ensure 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.

Compared to other blockchain networks, staking on Algorand is uniquely accessible and easy:

• no period of lock-up
• no risk of slashing
• the cost to run a node is extremely low
• staking rewards are paid in real-time (every 2.8 seconds, as a block is finalized)

In the initial phase, Algorand staking rewards will be comprised of two components: 

1. Block fees – 50% of transaction fees will be paid out as block reward
2. Algorand Foundation-funded supplementary bonus – Starting at 10 Algo per block, this bonus will decay by 1% every 1 million blocks. The Foundation has committed to providing bonus rewards for a period of 24 months (beginning January 2025).

Consensus is a process that ensures the Algorand network is secure and resilient. Users stake their Algo into consensus through nodes–hundreds 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:

1. A VRF identifies potential block proposers, resulting in multiple “valid” block proposals from different proposers.
2. Each node that observed the block proposals propagates the “best” block – that is, the block with the lowest hash of the VRF proof.
3. Another VRF identifies a soft vote committee; that committee votes to reach agreement that the proposed block is indeed “best.”
4. 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.)
5. The block is then written to the blockchain. 

Learn more about Pure Proof-of-Stake and consensus on Algorand.

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.

• 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.

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.

On Algorand a variety of staking applications exist for users. These include liquid staking, staking pools, delegated staking, consensus-compatible liquidity pools, custodial staking, and more. Explore these options via the “Providers” tab on this site, and learn more here.

Yes! Users can explore the ecosystem of Algorand staking applications and stake their Algo all directly through Pera wallet. Learn more and get started with Pera.

Visit the Staking Rewards page on the Algorand Foundation website, and see a full list of FAQs here.