• ALGO’s price spiked by 6.02% in just over 24 hours
• Algorand’s new staking reward program highlighted the sustained growth of the blockchain

Algorand launches new Staking Reward Program for Validators

After the consensus mechanism upgrade, the Algorand Foundation has now unveiled a new reward program. Under this program, block rewards are now paid in real-time to validators after successfully proposing blocks to the Layer 1 blockchain. Based on this model, the rewards will start at 10 ALGO per block and will decay by 1% for every millionth block.

Additionally, validators will receive 50% of the transactions fees of the blocks they successfully propose.

Previously, the Algorand reward system employed a passive rewards distribution model that was tied to its pure proof of stake consensus mechanism.

Thus, the system did not provide real-time rewards but released them gradually based on a declining inflation schedule.

Why the staking reward matters

What makes the new staking program unique across the industry is the fact that unlike the staking on Solana, Ethereum, and other chains, participants are safe from slashing. Also, they are not subject to restrictive token lockups.

Therefore, Node Runners will have access to their funds at all times. In fact, the most important aspect is that it’s not inflationary. Thus, rewards will not affect the total supply of ALGO and have no negative impact on the altcoin’s price.

What does this mean for ALGO?

Notably, this development had a positive impact on ALGO’s price charts.

At the time of writing, ALGO was trading at $0.42. This marked a 6.02% hike over the last 24 hours alone. These gains came on the back of market participants turning bullish across the board.

For example, we can see this shift in market sentiment as A

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Author: Gladys Makena