New Algorand Reward Program: What You Need to Know
The Algorand Foundation has recently introduced a new reward program following the update of the consensus mechanism. With this application, validators who correctly propose blocks to the Layer 1 blockchain now receive block rewards in real time. According to this concept, the incentives will begin at 10 ALGO per block and decrease by 1% for each millionth block.
The Algorand reward program previously used a pure proof of stake consensus mechanism coupled with a passive rewards distribution approach. Therefore, the system released prizes progressively in accordance with a falling inflation schedule rather than in real time.
Algorand Redefines Staking with Safety and Flexibility for Node Runners
The new staking mechanism is distinct from others in the industry because it protects members from slashing, unlike staking on other chains like Ethereum and Solana. Furthermore, onerous token lockups do not apply to them. Consequently, Node Runners will always have access to their funds. The fact that it doesn’t cause inflation is perhaps the most crucial factor. Rewards will therefore not have an adverse effect on the price of the cryptocurrency or the overall supply of ALGO.
Positive Market Sentiment Boosts ALGO Price and Whale Activity
On the other hand, ALGO’s price charts benefited from this event. ALGO was trading at $0.3991 at the time of writing. This was a 12.34% increase over the previous month. These increases followed a general shift in market sentiment toward bullishness.
Moreover, Algorand’s weighted sentiment has stayed positive for the last three days, indicating a change in market sentiment. This indicates that a greater proportion of investors hold positive opinions on the altcoin than do those who hold negative opinions.
Further investigation reveals that whales are more likely to exhibit these bullish sentiments. In fact, throughout the past 24 hours, whale activity has increased by 60%. Large transactions have increased from 85 to 168 in recent years, continuing this trend.
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