In This Article
In January 2025, Algorand reached an important milestone by launching its 4.0 upgrade, which changed its reward program from governance to staking. This upgrade enabled Algorand to experience a massive growth in consensus participation. The number of live nodes on Algorand increased by 179%, while its monthly active users grew by 16.17% in just one month.
At this point, you might wonder what staking is on Algorand. Well, Algorand staking is a process that enables ALGO holders to earn rewards by securing Algorand’s network. This process benefits investors because it has zero lockup periods and low requirements for running a node. What’s more, staked ALGO coins cannot be slashed.
Algorand’s staking protocol is unique because of its Pure Proof-of-Stake consensus mechanism (PPoS). This mechanism enables the distribution of rewards in real-time and enhances security, efficiency, and decentralization. It also allows ALGO holders to earn rewards through solo and liquid staking, staking pools, and delegation.
In this guide, we’ll break down how Algorand’s staking mechanism works, explore different staking options, and help you maximize your ALGO rewards in 2025.
Algorand Staking: Summary
Algorand is an open-source L1 blockchain that was officially launched in 2019. It’s designed to process a large number of transactions within seconds and to support the execution of smart contracts, which makes it a strong alternative to Ethereum, particularly in enterprise solutions and financial applications.
This blockchain uses an innovative consensus mechanism called Pure Proof of Stake. The role of PPoS is to randomly select users who will propose and validate new blocks on the network. The selection will be based on the amount of ALGO coins they hold. ALGO holders will also be able to participate in its governance through voting sessions, although, with the 4.0 upgrade in 2025, staking rewards have replaced governance rewards as the primary incentive.
The ALGO coin has multiple use cases. It can be used as a payment method, for creating dApps, and participating in the staking protocol. If you want to know more about this blockchain, check out our comprehensive Algorand review.
Key Takeaways
- Algorand staking allows users to participate without locking their ALGO coins, ensuring they remain liquid and can be withdrawn at any time.
- Algorand’s Pure Proof-of-Stake (PPoS) mechanism eliminates slashing risks while strengthening decentralization and security.
- ALGO holders can earn rewards through solo staking, delegated staking, liquid staking, and staking pools.
- The process of unstaking ALGO coins is very simple, but it varies based on the staking method and platform used.
What is Algorand Staking?
Algorand’s staking system aims to maintain the network safe and decentralized by encouraging ALGO holders to participate in its consensus. Anyone who successfully proposes and validates a new block will be rewarded with ALGO coins.
Algorand’s consensus mechanism differs from the traditional Proof of Stake consensus. PPoS offers a more user-friendly staking model by allowing ALGO holders to participate without locking their coins, ensuring accessibility and liquidity. There are no lock-up periods, meaning staked coins will remain liquid, and users can withdraw them whenever they want. There are no slashing mechanisms, and validators can earn rewards in real time.
How Does Algorand Staking Work?
In 2025, Algorand transitioned from its governance rewards program to a new consensus rewards program. Governance rewards have ended, but participation in governance remains active without monetary incentives. The governance rewards program enabled ALGO holders to earn rewards through 3-month commitment cycles. Those who maintained their committed balance and participated in the voting process earned rewards after each cycle.
With the launch of staking rewards, the governance rewards program have shut down. Token holders can now earn rewards through solo staking, liquid staking, delegated staking, and staking pools. All ALGO holders can participate in Algorand’s consensus, but block validation is handled by a randomly selected committee weighted by stake. However, to earn Algorand rewards, you’ll need to stake a minimum of 30,000 ALGO coins. Those with fewer coins can participate through liquid staking, staking pools, or delegation. Interestingly, running a node comes with certain minimum requirements, such as a specific amount of RAM and stable internet bandwidth.
Pro Tip: While staking ALGO can be a great way to earn rewards, diversifying your portfolio can offer even better opportunities. Check out our guide on the Best Staking Coins to Invest in 2025 to find out other promising options.
How Algorand Rewards Have Changed?
Algorand’s reward system has undergone quite a few changes over time, impacting how users earn incentives. Here’s a table summarizing all the key points .
| Timeframe | Rewards Model | How It Worked | Changes |
| Pre-Dec 2021 | Participation Rewards | Automatic ALGO rewards for holding. No voting or commitment. |
No community engagement or security impact.
|
| Dec 2021 – 2024 | Governance Rewards | 3-month cycles. Users committed ALGO & voted for rewards. |
Increased participation but limited decentralization. Required ALGO lock-up.
|
| Nov 2024 | Transition Announced | Governance rewards ending. Staking to replace it. |
Shift from voting cycles to continuous network participation.
|
| Early 2025 | Staking Rewards | Rewards for block proposers & validators. No lock-up. 30K ALGO min for nodes. |
Strengthens decentralization. More flexible, no slashing penalties. Liquid staking added.
|
Where to Stake Algorand: Top Platforms For Staking ALGO in 2025
Now that you know how to stake ALGO, you’ll need to choose where to stake your tokens. The best places to stake your ALGO tokens include CEXs like Binance and Bybit and crypto wallets like Pera and Ledger. But, the number one choice remains Best Wallet in this category. Well, before you start staking your ALGO, you need a secure wallet to store your tokens. For the best options, check out our guide on the Best Algorand Wallets to find one that suits your needs.
Best Wallet: Most Popular Wallet With Support For Staking
Best Wallet is a non-custodial crypto wallet that supports over 60 blockchains. It is designed for both beginners and advanced traders, providing easy access to staking, decentralized exchange (DEX) aggregation, and a planned crypto debit card launch. This staking aggregator simplifies passive income generation by allowing users to stake across multiple blockchains while maintaining transparency in reward structures.
With its user-friendly interface, Best Wallet makes it easy to manage multiple assets, stake tokens, and explore presale crypto projects. The staking feature functions like a digital piggy bank, allowing users to lend their tokens to networks and earn rewards. Additionally, the wallet distributes $BEST staking rewards at a fixed rate per Ethereum block over three years.
Key Features
- Non-custodial wallet ensuring users hold their private keys.
- Supports 60+ blockchains for staking and trading.
- Integrated DEX aggregator for optimal swap rates.
- Staking aggregator helps maximize staking rewards.
- Transparent reward distribution for $BEST staking over a three-year period.
Pros & Cons
Pros
- No KYC required; users retain full control of their assets
- Allows staking across multiple blockchains with transparent reward structures
- Integrated DEX aggregator ensures best swap rates
- Strong security with non-custodial features
- Future debit card integration for spending crypto
Cons
- No hardware wallet integration yet
- Lacks a browser extension for desktop users for now
Do you want to know more about this wallet? Check out our separate Best Wallet Review 2025: Is It a Safe Crypto Wallet?
Binance: Best Exchange to Stake Algorand Crypto
Binance is the largest centralized exchange by trading volume and offers a variety of staking options through its Simple Earn program. Users can stake ALGO with an APY ranging from 0.32% to 1.5%. The platform provides flexible and locked staking options, allowing users to earn passive income while maintaining liquidity.
Binance staking also integrates liquid staking tokens for ETH and Solana, enabling stakers to access their funds while still earning rewards. However, staking on Binance requires trusting a centralized platform, which carries risks.
Key Features
- Staking via Binance Simple Earn with flexible and locked options.
- Liquid staking options for ETH and SOL.
- Supports a wide range of cryptocurrencies for passive income.
- High liquidity for easy withdrawals.
- Secure platform with multiple security layers.
Pros & Cons
Pros
- High liquidity with an easy-to-use interface
- Liquid staking tokens allow staking without losing access to funds
- Offers a variety of passive income options
- Low trading fees compared to competitors
Cons
- Not available for U.S. users (Binance.US has limited options)
- Only supports direct staking for ETH and SOL
- Staking listed alongside riskier Binance Earn products
To know more about this platform, check out our comprehensive Binance Review for 2025.
Bybit: Top Exchange to Stake Algorand Crypto Coins
Bybit is a centralized exchange that enables users to stake ALGO via its Earn program, offering an APY of around 0.80% (at press time). The platform is known for its trading-focused tools, including trading bots and high-leverage options.
Bybit Earn allows users to generate passive income while leveraging advanced trading strategies. The platform supports Dual Asset staking, liquidity mining, and staking pools, making it an attractive option for both beginners and advanced traders. Users should also keep in mind that ByBit was recently compromised. But the exchange fully recovered after record-breaking $1.5 billion hack. So caution should be of utmost priority.
Key Features
- Staking ALGO with around 0.80% APY.
- Supports Dual Asset staking and liquidity mining.
- User-friendly interface with advanced trading tools.
- Offers copy trading and demo trading for beginners.
- Strong security protocols for fund protection.
Pros & Cons
Pros
- Competitive trading fees compared to other exchanges
- Supports multiple earning options for passive income
- Offers leverage trading up to 100x
- User-friendly interface with educational resources
Cons
- Mixed customer reviews on customer support
- May be overwhelming for beginners due to advanced tools
Read more about this exchange in our ByBit Review article.
Pera Wallet: Stake ALGO Using Algorand’s Official Wallet
Pera Wallet is a mobile-first, self-custodial wallet designed for Algorand users. Pera Wallet is the official successor to Algorand Wallet. It supports staking through multiple options, including solo staking, delegated staking, and staking pools.
Users can interact with dApps, trade Algorand Standard Assets (ASAs), and stake ALGO securely within the app. The wallet is also compatible with Ledger hardware wallets for enhanced security.
Key Features
- Self-custodial wallet with full user control.
- Supports staking, Algorand NFTs, and DeFi applications.
- Allows delegation to staking pools for smaller investors.
- Integrated with Ledger for enhanced security.
- Offers direct access to Algorand dApps.
Pros & Cons
Pros
- Supports multiple staking options, including pools and delegation
- Secure, non-custodial wallet with full user control
- Allows interaction with Algorand DeFi apps
- Ledger integration for added security
Cons
- Requires a minimum of 30,000 ALGO for solo staking
Ledger: Best Hardware Wallet For Staking ALGO
Ledger is a hardware wallet that allows users to stake ALGO while keeping their private keys offline. Ledger allows ALGO staking via the Algorand Governance program, primarily through wallets for secure transactions, offering high security and decentralization.
Ledger ensures that users remain in full control of their ALGO while still earning rewards. However, staking requires additional setup with third-party wallets. There are different offerings by Ledger such as Ledger Nano S, Ledger Nano X, Ledger Nano S Plus, among others. You can choose one depending on your needs.
Key Features
- Cold storage for maximum security.
- Allows staking through Algorand Governance or Pera Wallet.
- No reliance on third-party exchanges.
- Compatible with multiple blockchains beyond Algorand.
- Full user control with private keys stored offline.
Pros & Cons
Pros
- Most secure staking method with offline private keys
- Users retain full control over their ALGO
- No reliance on centralized exchanges for staking
- Supports multiple blockchains beyond Algorand
Cons
- Requires setup with third-party wallets for staking
- No direct staking within Ledger Live; must use Pera Wallet
How to Stake Algorand?
Until recently, ALGO holders could participate in Alogrand’s consensus via the governance rewards program, which contained three phases: sign-up phase, voting phase, and rewards phase. Each phase lasted three months, during which token holders could vote to earn rewards in the following way:
- Creating an Algorand address
- Connecting a crypto wallet to the dashboard
- Committing ALGO tokens
- Voting during a voting session
In 2025, the staking rewards program replaced the governance rewards program. ALGO holders can now stake their coins by running a node or joining a staking pool. Anyone with an Algorand account can run a node by installing their nodes manually or by installing one-click nodes. Requirements for running a node include:
- An account balance of at least 0.1 ALGO
- A computer with 16 GB of RAM, 8 vCPU, and fast SSD
- A low-latency internet connection (ideally 1 Gbps)
You can run a node in the following way:
- Step 1: Download and install the Algorand core node
- Step 2: Register participation keys
- Step 3: Monitor your node’s performance
The ALGO staking process also includes staking, liquidity, and delegation pools. The former refers to earning rewards by joining staking pools. This option is suitable for investors who have less than 30,000 ALGO tokens. The latter includes delegating the stake power to third-party services.
Here are some applications for staking pools, delegated staking, and liquid staking on Algorand:
- xAlgo Liquid Staking
- Tinyman Liquid Staking
- mALGO Liquid Staking
- Pact’s consensus-compatible liquidity pools
- Algo Liquid Staking
- Reti Pooling (coming soon)
- Valar
- Kiln
How Much Can You Earn from Staking Algorand?
Algorand selects a committee of validators at random (weighted by stake) to propose and validate blocks, and some chosen accounts will earn rewards. Once a proposed block gets added to the blockchain, the account that proposed it will earn a reward for its contribution. While there is no strict minimum ALGO requirement for staking, some validator pools may require higher balances (e.g., 30,000 ALGO) to participate efficiently. Users with less than 30,000 ALGO tokens will also be able to earn ALGO staking rewards by utilizing Algorand’s staking pools and delegation applications.
Algorand’s staking rewards differ from staking rewards on other popular blockchains, like ETH and SOL. First, they are not inflationary, which means that they will not have an impact on the total supply of ALGO tokens. Secondly, Algorand doesn’t impose slashing mechanisms and lock-up periods.
ALGO’s Staking Rewards
Staking rewards on Algorand are paid out in real-time. They comprise 50% of transaction fees per block and 10 ALGO tokens per block. Keep in mind that this figure will drop by 1% after every millionth block. What’s more, the Algorand Foundation will provide bonus rewards for a period of roughly 24 months.
As mentioned before, the rewards will be paid out once the block proposal gets validated and added to the blockchain, which happens every 2.8 seconds.
To be eligible for staking rewards, token holders must stake a minimum of 30,000 ALGO. This rule applies to solo and delegated staking. Liquid and staking pools don’t impose minimum requirements
Participants with more than 70,000,000 ALGO tokens in their accounts won’t receive staking rewards. This system encourages network participants to spread their stakes to reduce the security risks if a single account goes offline.
Staking rewards on Algorand are funded through transaction fees (paid by the network users) and the Algorand Foundation. The Algorand Foundation uses a fixed pool to allocate 10 ALGO tokens towards bonus rewards per block every 24 months. After each millionth block, the bonus rewards will drop by 1%.
Difference Between Algorand Staking Rewards and Governance Rewards?
The main difference between staking and governance rewards in Algorand can be seen in their operations. Before Algorand introduced staking rewards, it used a governance reward model that operated through three-month commitment cycles. Token holders could earn rewards by committing tokens, maintaining balance, and voting.
This system was replaced with a staking mechanism that included four options: solo staking, pool staking, delegated staking, and liquidity staking. Although Algorand no longer issues governance rewards, users will still be able to vote on major changes regarding the network’s protocol without financial incentive. When Algorand switched from staking rewards to governance rewards, Staci Warden, CEO of the Algorand Foundation, expressed confidence in the community’s decision.
“The Algorand blockchain does not fail. The Algorand blockchain will never fork. And, now, Algorand will also offer inclusive, robust, and future-proofed staking,” – Staci Warden, CEO of the Algorand Foundation.
Different Ways to Participate in Algorand Staking Rewards
You can stake your tokens for rewards using one of the following options:
- Solo staking: Solo staking enables ALGO holders to run their own node. To be eligible for rewards, they’ll have to stake a minimum of 30,000 and a maximum of 70 million ALGO tokens. Anyone with an Algorand account and a system with at least 16 GB of RAM, 8 vCPU, and fast SSD and internet connection will be able to run a node. Node operators will also gain voting rights.
- Liquid staking: Liquid staking enables token holders to stake their coins while maintaining liquidity. Staking applications on Algorand include xAlgo Liquid Staking, Tinyman Liquid Staking, mALGO Liquid Staking, Pact’s consensus-compatible liquidity pools, and cAlgo Liquid Staking.
- Staking pools: Staking pools allow token holders to delegate their staking power to a validator and earn rewards based on the validator’s performance. Algorand also allows token holders to use DEX liquidity pools to stake their tokens. However, if they choose this option, they’ll have to commit an additional asset besides ALGO.
- Delegated staking: Delegated staking enables token holders to authorize a third party to run their nodes on their behalf. This option is suitable for users with no technical knowledge or equipment to run their own node.
Best Ways to Maximize ALGO Staking Rewards
You can maximize your returns by joining active staking pools and spreading your stakes across different platforms to take advantage of their high APYs. You should also monitor market trends regularly. This will help you adjust your staking strategy if needed. If you participate in delegated staking, choose reputable validators with low commission rates and high uptime.
Another good strategy to maximize your returns is to reinvest your rewards. This strategy will help you increase your stakes over time. For example, if you earn 10 ALGO tokens through staking, you can reinvest them to increase your staking balance instead of withdrawing them. This strategy suits long-term investors who believe in ALGO’s growth potential.
How to Unstake Algorand?
The process of unstaking ALGO coins will depend on the method and platform you use to stake your coins. If you staked ALGO on crypto exchanges, in most cases, you’ll need to log into your account, locate the Staking/Earn section, and tap the Unstake button.
Follow these steps to safely unstake your ALGO from Algorand Governance:
- Check Governance Period: Algorand staking follows fixed governance cycles (quarterly). You can only withdraw after the governance period ends.
- Open the Algorand Governance Portal: Visit the official Governance Portal. Ensure you are using the correct site to avoid scams.
- Connect Your Wallet: Click “Connect Wallet” and choose: Pera Wallet, MyAlgo Wallet, Ledger Wallet. Approve the connection request.
- Review Staking Details: Check your ALGO commitment, governance period, and voting status. Ensure you meet the minimum holding requirement before unstaking.
- Confirm Eligibility to Unstake: ALGO can be unstaked only: Before the commitment deadline or after the governance cycle ends.
- Withdraw Your ALGO: Click “Withdraw” or “Modify Commitment” on the portal. Enter the amount to unstake and confirm. Approve the transaction in your wallet.
- Verify & Wait for Completion: Your ALGO should return to your available balance soon. Network delays may occur based on congestion.
- Plan for Future Staking: Check new governance cycles for fresh staking opportunities. If you plan to continue, ensure your ALGO meets minimum staking rules.
Conclusion: What is Algorand Staking?
Algorand staking stands out with its innovative consensus mechanism (Pure Proof-of-Stake), which enables users to stake their tokens without lock-up periods and slashing risks. Algorand recently introduced a new staking reward program that incentivizes users to participate in its consensus. Participants earn 10 ALGO tokens per block, plus 50% of the transaction fees from each block.
Another thing that makes staking Algorand lucrative for investors is its flexibility. You’ll be able to participate in the staking process regardless of the amount of tokens you hold. For example, if you hold 30,000 ALGO, you can earn rewards via solo and delegated staking. On the other hand, if you hold a lower amount of tokens, you’ll still be able to earn rewards by joining staking and liquidity pools.
Interestingly, the Algorand Foundation has announced that the integration of Pera Wallet with Mastercard is almost complete, expanding ALGO’s use cases. This could boost its value over time and potentially lead to a rise in Algorand staking.
See Also:
References
- Ledger. “Staking Algorand.” Ledger, https://www.ledger.com/staking-algorand
- Coinbase. “Algorand ALGO Staking: Earn Rewards with Coinbase.” Coinbase, https://www.coinbase.com/earn/staking/algorand
- Algorand. “Staking Rewards Have Arrived on Algorand.” Algorand, https://algorand.co/staking-rewards
- Algorand. “Algorand Staking Rewards FAQ.” Algorand, https://algorand.co/staking-rewards-faq
- Kraken. “Algorand Staking | Earn Staking Rewards on ALGO.” Kraken, https://www.kraken.com/features/staking-coins/algorand
FAQs
Can you stake Algorand?
Yes, you can stake Algorand via solo, delegated, and liquid staking or by joining staking pools. However, if you choose solo and delegated staking, you’ll have to stake at least 30,000 ALGO tokens to be eligible for rewards.
What is Algorand Governance Program?
The Algorand Governance Program was a model that previously allowed ALGO holders to earn rewards by becoming governors. In this system, token holders could vote on protocol changes in exchange for rewards. It has since been replaced by Algorand’s consensus rewards program.
What is the best platform to stake Algorand?
The top platforms for staking ALGO include Binance, Bybit, Pera, Best Wallet, and Ledger. Binance and Bybit are centralized exchanges (CEXs) with staking options, while Pera, Best Wallet, and Ledger are crypto wallets that let users manage their Algorand accounts and stake their ALGO.
How much can you make staking Algorand?
It depends on staking type, staking duration, and provider. The current annualized average reward rate stands at 5.91%, which is 26.65% more than last year’s rate.
Can you stake Algorand on Coinbase?
At the time of writing, Algorand cannot be staked on Coinbase. However, this may change in the future due to its new staking reward program.
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed
Free Bitcoin Crash Course
- Enjoyed by over 100,000 students.
- One email a day, 7 days in a row.
- Short and educational, guaranteed!
In This Article
Maximize Your Trading With Margex’s 20% Deposit Bonus
Hottest Meme Coins to Buy in April? Retail Target Latest Crypto For Mega Gains
AR.IO Brings The Permanent Cloud to AI Storage Crisis
10 Best Crypto Bonuses in 2025 – Top Exchange Offers & Promotions
BingX Launches $10 Risk-Free Copy Trading Voucher for New Users in Exclusive Event
