Algorand Staking Rewards go live tomorrow (1/23/2025). You can now run a node and get rewarded! No slashing risk! No lockup period! Real-time, auto-compounding rewards! Every block proposed will pay out 10 ALGO + 50% of block transaction fees.

Tomorrow marks a titanic shift in the future of Algorand and decentralization. This is one of the biggest updates in Algorand history. The network will now reward participants who propose blocks! Algorand is unique because of the following:

• No slashing risk
  • Staked Algo is not subject to slashing. Instead, ineffective nodes are algorithmically removed from consensus and simply forgo rewards.
• 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.
• Real-time rewards
  • The initial rewards for block proposers are 10 Algo + 50% of txn fees per block. On Algorand, rewards are paid out as each block is finalized, every 2.8 seconds, and your stake automatically compounds, instantly increasing your voting power.

Why is this huge?

This will make Algorand one of the most egalitarian, democratic, and decentralized blockchains in the world. You don't need a data center or crazy hardware to run a node. Anyone can run one on a mediocre laptop or minipc! Algorand to me lives up to the ideals of Satoshi, anyone, anywhere can help secure the chain and liberate themselves from the shackles of traditional finance. This brings us one step closer to the dream of a purely peer-to-peer version of electronic cash that allows online payments to be sent directly from one party to another without going through a financial institution.

Now, lets get into the weeds!

Recommended system specification for participation nodes is:

• 8 vCPU
• 16 GB RAM
• 100 GB NVMe SSD or equivalent
• 1 Gbps connection with low latency

Personally I run my own on a Beelink Minipc and it runs flawlessly (https://www.bee-link.com/products/beelink-ser8-8845hs). Please note, this is above the required specs and you can find cheaper ones that will run flawlessly.

There will be many options for node running depending on whether you have access to the required hardware and ALGO requirements.

1. Solo staking (min. 30K Algo)
   • 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.
2. 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.
3. 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).
4. Delegated staking (min. 30K Algo)
   • Delegated staking involves utilizing a third-party to run a node on the your behalf while your Algo remains 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.

If you choose to run your own node, there are many different options for getting your node up and running. From command line interface purism to one-click solutions. Currently, I use FUNC, which is a one click option for Windows that is extremely simple and easy.

• https://algorand.co/run-a-node
  • Nodekit (https://nodekit.run/)
  • FUNC (https://github.com/GalaxyPay/func)
  • A1C (https://github.com/AustP/austs-one-click-node/releases)
  • Manuel Installation (https://developer.algorand.org/docs/run-a-node/setup/install/)

The minimum amount needed to run your own node and get rewards is 30,000 ALGO. Keep in mind, you can still run your own node with a lower amount, as little as .1 ALGO, you just will not get rewarded.

If you don't have the required 30,000 ALGO you can put your ALGO in a liquid staking pool and get rewards. There will be many different platforms to do so. Below is a non-exhaustive list.

• Pera Algo Wallet (https://perawallet.app/?download=true)
• Folks Finance (https://app.folks.finance/liquid-staking)
• Tinyman (https://app.tinyman.org/liquid-stake)
• Pact (https://www.pact.fi/)
• CompX (https://app.compx.io/staking-pools)
• Messina One (https://messina.one/liquid-staking)
• Valar (https://stake.valar.solutions/)

You will also have the ability to setup your OWN pools and let people stake to your pools via Reti Pooling. The Réti Pooling protocol facilitates the creation of decentralized staking pools on the Algorand network, enabling groups of individuals to participate in consensus together. Users are able to trustlessly stake to a Validator and earn yield based on the rewards the Validator receives.

• https://txnlab.gitbook.io/reti-open-pooling/introduction/readme
• https://nodely.io/docs/public/reti

I also assume the major exchanges will allow you to earn a percentage back on any ALGO you keep on an exchange.

Help be a part of decentralizing Algorand and get paid in the process!

Exciting times are ahead! I hope you're Reti!

To see the current state of the Algorand network (# of nodes, telemetry, etc.) check out:

https://g.nodely.io/d/network/network