Algorand, a proof-of-stake blockchain network, has introduced a new staking rewards program to incentivize validators. This development follows the network’s recent upgrade to its consensus mechanism, adding new capabilities for participants. The staking rewards initiative is expected to increase engagement and strengthen the blockchain’s ecosystem, potentially influencing ALGO price.
Algorand Launches Real-Time Staking Rewards for Validators
The Algorand blockchain network has unveiled its new staking rewards program, which offers real-time payouts to validators. Validators proposing blocks on the network will earn a minimum of 10 ALGO per block, alongside 50% of transaction fees from the successfully proposed blocks. The rewards are set to decay by 1% for every one million blocks generated.
More so, the program, introduced after the network’s recent consensus mechanism upgrade, eliminates measures such as slashing and token lockups. Unlike other proof-of-stake networks, Algorand allows validators to maintain full access to their tokens. This ensures a secure staking environment.
Meanwhile, earlier this month, Algorand-linked Exodus Wallet became the first crypto firm to go public on the NYSE American after overcoming SEC rejection in May.
Non-Inflationary Supply Supports ALGO’s Market Appeal
One of the key features of Algorand’s staking program is its non-inflationary rewards system. The staking rewards are distributed without impacting the total supply of ALGO, maintaining the token’s scarcity. This differentiates Algorand from other networks like Ethereum and Solana, where staking rewards often result in inflationary pressures on the native token.
The Algorand Foundation highlighted that the staking rewards program will boost network participation while preserving the blockchain’s long-term economic stability. Participants can engage in liquid staking through platforms like Folks Finance and Tinyman, or use delegated staking options on Pact and Valar.
ALGO Price Action and Prediction
Algorand’s new staking rewards program comes as its native token, ALGO, trades at $0.4106. The blockchain native token has seen a 1.24% increase over the past 24 hours, with a market capitalization of $3.44 billion and a 24-hour trading volume of $275.63 million.
Moreover, technical indicators suggest potential bullish momentum for ALGO price. The 7-day Moving Average Convergence Divergence (MACD) indicator shows a positive crossover, with the MACD line above the signal line. This alignment indicates growing bullish momentum.
More so, increasing histogram bars support the bullish momentum, suggesting buyers are gaining control of the market. The gradual upward trend in the MACD signals a potential continuation of bullish activity.
Similarly, the symmetrical triangle pattern visible on the chart signals a bullish breakout as the price consolidates within narrowing trendlines. This formation often precedes significant price movements. With ALGO price trading near the upper boundary of the triangle, a breakout above $0.50 could confirm a strong upward move. The declining volume during consolidation further validates the pattern, hinting at an impending volatility surge.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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