Algorand’s staking is changing

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Algorand’s staking is changing

Just as an update to anyone not active in ALGO communities, ALGO’s staking program is changing in 2022.

Rather than receiving around 6% rewards for just holding coins in a wallet, it will soon be based on governance. ALGO holders will be able to lock their coins for 3 months, and vote on all on-chain governance proposals in that time, which would then make them eligible for staking rewards for those 3 months.

This has its pros and cons. On one hand, the introduction of lock in periods makes staking less appealing for short term traders, but does mean with less people staking the rewards may go up. The ALGO foundation claims rewards may be between 7 and 20 percent APY depending on how many people stake. Either way, this brings on chain governance and decentralisation to the front of ALGO’s priorities, which is definitely welcome.

submitted by /u/SaranshMalik
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