How do I stake ALGO?
The Algorand ecosystem has transitioned to a decentralized governance model. This model allows holders of ALGO to participate in the ecosystem’s decision-making process and receive governance rewards. Algorand staking as we know it has been shut down in 2022 and replaced by governance rewards. In this article, we will cover everything you know about the new Community Governance rewards program.
What is the Community Governance program?
The community governance program allows any ALGO address to become a governor. Being an Algorand governor means committing some ALGO to the program and participating in the voting sessions. A governor must commit their ALGO for a Governance period. There are four per calendar year (each lasting three months). After the Governance period is over and the voting is done, the governor is eligible to receive rewards.
Any address holding ALGO can become a governor by sending a zero-ALGO transaction to a specific address. You will be able to get the specific address from the Algorand Foundation website once you decide to become a governor.
There is currently no way to send the zero-ALGO transaction using your Atomic Wallet.
Voting sessions for each governance period are announced by the Algorand Foundation. A governor will also be provided with a list of topics to be voted on. Voting sessions are expected to last for about two weeks.
To be eligible to receive rewards, a governor shall vote in all voting sessions opened during the governance period. Voting power is determined by the amount of ALGO that the governor has committed to the governance period.
A governor is eligible to receive rewards after the governance period is over if they comply with certain requirements. A governor's address must commit some amount of ALGO and maintain this amount throughout the governance period. The governor must also participate in all the voting sessions. The amount of rewards depends on the ratio between the rewards pool for the period (decided by the Algorand Foundation at the beginning of the governance period) and the amount of ALGO committed by all eligible governors.
Can I participate in the Community Governance program using my Atomic Wallet?
As of right now, it is not yet possible to use your Atomic Wallet to become a governor. We are, however, looking into it!