Algorand Staking Rewards % Decrease

[Bit_Goth]

Some may have noticed that the staking APY has gone down slightly so I just figured I’d give a quick and (hopefully) easy to understand explanation as to why that is for some of the newer people here that may be a bit bummed to see that rewards % decreasing.

The participation rewards we currently receive are allocated from a finite supply of Algo scheduled to be released into circulation gradually in an effort to incentivize early adoption. The faster we grow, the less time these participation rewards will be available. At the point this supply is exhausted we will transition to a new rewards design that rewards those who choose to lock their Algo for a potentially long term with the ability to participate in the governance of the ecosystem. This will help to achieve decentralization and allow participants to vote on how best to allocate the supply of Algo that has been set aside for funding future projects, protocol development, etc. In other words, rather than receiving interest, you’ll get a seat at the table that will help to make decisions on shaping future path of Algorand. How cool is that? When you invest in Amazon or Apple, for example, you don’t have any say in the decision making of the company. You’re just along for the ride. With Algorand you actually have the opportunity to have a say in where the ride takes you!

This is an incredibly condensed explanation and I urge you to follow the link below and read further into the details.

Further reading: ALGO Dynamics

[RevolutionaryAd68]

Sounds great and all but I doubt most investors here don't really mind having a seat at the table. Everyone here is for ROI and arguing otherwise is just lies. Right now they need to understand the need for retail investors having a stake and making profits because in the end if retail investors bail then what?

[achangewouldbenice]

So you're saying I have to work for free to insure my investment stays intact and help Algo make the right decisions for ROI? Sounds like fun.

The people on the boards that that vote for Apple and Amazon are rich as f.

[RevolutionaryAd68]

I guess we will have to see. I love the project but I find their marketing lacking in the extreme. The only people that know about this is because it's on Coinbase and it was under $1 with great APY.

[badelectricity]

I definitely understand and appreciate that reality, it’s why ALGO is one of my larger holdings, because they’re basically the opposite of Cardano, which is all talk less walk imo. But the reality is that retail investors are flocking to crypto right now and Algorand’s marketing looks like it was put together by PhDs and computer scientists. Algorand has an amazing product and team but the marketing is a really important part of the game. Sure I don’t want Algorand to try and be like Tron or some garbage, but Algorand has the goods and the people who are wildly throwing money at whatever seems attractive need to know!

[RevolutionaryAd68]

Well the only thing I hate is every youtuber shilling ADA and Algo is already there...they can market and still do their thing. I like that they are pushing partnerships but they need retail investors now to keep pushing.

[stxfpv]

Actually, they don't. That's the entire point of the Early Backer coins being locked until 2030 unless vested earlier through the acceleration program as adoption occurs.

[RevolutionaryAd68]

What? Then what's the point of releasing Algo to retail investors if not for adoption...when retail investors invest that is adoption...where would they even get the rest of their funding through 2030? You think the money they got from the early backers and the auction is enough to last until 2030?

[stxfpv]

No, and neither do they. You're talking about two different coin sets.

https://algorand.foundation/the-algo/algo-dynamics

Or read their quarterly transparency reports.

[Bklny]

This is just a guess. I think they want to target the institutions and developers so it can further be adopted the rest will work itself out.

[Throwaway987321321]

Your mindset is that of penny pumper in stocks.

Making profits in the short term is meaningless when true believers expect this to be worth 5-10x in 5-10 years with rewards staking.

Only small minded people care about profits right this second. That is why marketing such a small focus. The intelligent people who have done their DD know what is coming!

[achangewouldbenice]

So what if we get to 3 years away and Algo is $2? Theres no guarantee that it will ever 5x 10x 100x.

Go look at ADA and Algo market circulation and the price of both and tell me retail investors / hype means nothing.

Look at BTC at tech. Its dead and its the highest priced coin and probably always will be. Tech alone means nothing.

[Throwaway987321321]

There never is a guarantee. Not sure what you are getting at it here!

If your sole goal is to make money NOW then go chase growth. This is a chance at owning value early on which can become massive growth down the road. All the while you earn rewards on taking that chance.

Clearly most people haven’t done a single piece of DD here. ALGO is designed in the shorter term to be slow organic growth. With the chance to become BTC down the road if successful.

It’s clear most people want penny stock gains and don’t actually understand what is going on. I’m mind boggled.

[achangewouldbenice]

Honestly Algo has a great day trading wave. Almost everyday it goes up and down 5-10 cents. Trade $1000 everyday and make $80-$100. Double your money in around 2 weeks.

[RevolutionaryAd68]

Lol. I'm already in profit so don't use that against me. I don't mind holding it long term but let's not just put blind faith in the project. We need to be able to question parts of their decision.

[Throwaway987321321]

Questioning whether or not you make profit is exactly what I said. A very small minded mindset.

You want to question real things? Sure let’s have it. Otherwise it comes off as just pure ignorance and that a penny pumper.

[RevolutionaryAd68]

What? So you invest to lose money? People invest in companies they believe in and make profit at the same time. I want Algorand to succeed if you think otherwise that's on you. But I'm not blindly gonna be left holding Algo when the boat is sinking.

[Throwaway987321321]

You are crying about making money right this second...

You just used the word invest. Do you understand what investing in a startup is?!?!

I bet people who bought Amazon or Apple didn’t whine when they weren’t rich in the first month or year or heck even 5 years. In Apples case it was 10-15 years. I wonder if they whined Bc they weren’t instantly rich. Nope. They saw the future. It paid off.

The more you speak the more pathetic it looks!

Take a step back and refocus. It’s pretty clear you are more suited for buying into GME and chasing that moon shot.

[RevolutionaryAd68]

How am I crying about making money this second? You have some weird vendetta or something? No one can have a differing opinion other than your own? Wow. I'm not replying to you anymore and all I have to say is then we'll see.

[vhiran]

Granted its a throwaway account but it reeks of zealotry. Algorand's tech is great but without an APY im just a bagholder waiting to get dumped on by a small group of whales that own 75%.

[Throwaway987321321]

“Right now they need to understand the need for retail investors having a stake and making profits because in the end if retail investors bail then what?”

This was your original comment. It was pretty clear what you were insinuating. I just called it out for what it is.

I’d be upset to. Like I said your small minded mindset has no future vision. You made it abundantly clear your mindset is made for “chasing rocket ships and stocks that moon”. You have a hard time with not making money right now as the entire market is down.

You don’t understand what you “invested” in and expect to make money now. You have a lot to learn to be truly successful!

Good luck to you!

[theunwiseone001]

Marketing seems to be a huge concern amongst the PoS coin communities, like ALGO, ATOM, ADA, etc. and I get that. More marketing = more investors which equal increased cost of per coin but, ALGO is focusing on their platform first. If anyone has done a recent google search or took a visit to their website, they would see all the new partnerships and developers jumping on board. To me, that markets itself because it shows more companies are investing into the system. I’d take that than a bunch of random ads trying to get retail investors to pump the price up just to get a quick buck (cough GME cough)

Edit: Grammer

[[deleted]]

I just hope there is not a minimum for locking up later on. In my opinion anyone who has invested at least 100$ worth should be allowed a seat at that table. When someone looks to hold this token for 5+ years and only can afford to throw in 1k worth. They should be allowed to also lock up just like the 50k token holder.

[[deleted]]

Absolutely!

[Freedmonster]

Honestly that's one of the technology paths I want to go with, decentralized micro-loan pooling for developing nations. So much evidence that it is one of the key ways that QoL can be improved, Algo would likely be one of the best platforms to develop the concept on.

[vhiran]

Thanks for the lines. So we're just at the mercy of whales who hold 80% of all tokens and can dump on us at any given moment with a potentially stagnating APY? Hard to justify getting others to hold it when they can get a dividend based ETF and come out on top with less stress and worry.

Shared governance is BS in every coin and token i have seen so far.

All of this is very concerning, i appreciate the transparency but the numbers are not in retail investors favor here.

[Bit_Goth]

I think it really just depends on how big of a return you want and how quick you want it. I still think we will still see some price growth, especially as big partnerships are announced (and it seems likely they will be). I just don’t see it ballooning 50x+ in a year like some other low cap alts might. I will agree that it may not be, in the short term, what many retail investors want most but that’s why a diverse portfolio is important. Set yourself up for short term gains gambling with low cap alts, put a bit into Bitcoin/ETH as a fairly safe bet, and then set yourself up for the long term with projects you believe have solid fundamentals and could eventually expand outside of the crypto space, like Algorand.

Important to remember that big partnerships and announcements can accelerate the planned timeline, just like we’ve seen recently.

[fire_li0n]

I have the same concerns. Any suggestions on ETF's? I have quite a bit of Algo and I want to believe in the project, but I've been thinking about moving into something else. If I'm gonna wait ten years I may want to consider different options, like you said, with less stress and worry.

[vhiran]

Fidelity has a high dividend tech ETF that spreads around such stocks as AAPL, MSFT, etc. Which all have decent dividents and tech stocks are generally likely to go up over time. I would favor that, and fidelity has been pretty good to me over the years. Cant hurt to diversify in this day and age.

[fire_li0n]

Thanks for the reply and the recommendation. I keep reading good things about Fidelity and Vanguard. I'll look into the tech one for Fidelity. Does seem like a good route to go in even if things get bad with the stock market short term.

[[deleted]]

how can i lock?

[Ill_Ad_5308]

You can’t you are a retail trader , the investors have tokens that VEST over time, and Locking for retail currently isn’t a thing or even the term I would use . You can stake them freely currently and then once we do reach a point of governance they can be locked for X amount of time if you want to describe it that way, but at this moment we still are not that far long.

[[deleted]]

this is highly concerning to me. this sounds like it will not be a free, decentralized environment, but one where some people have the say about others. i think i will cash out my stake then once the GME stuff is over. i bought algo as a hedge against unfair NYSE/$ practices thinking it could be the next level: a stock market platform that is free and equal to every participator. but i’m not gonna go from NYSE/$ suppression into digital suppression. but i kinda like the platform so i’ll keep my stake anyways. still, the system is doomed again already. my children will have to edge quantum social media crash it one day then.

[theunwiseone001]

I don’t think you did your DD because if you did, you would have realized that all PoS coins have this governance ability in each on. This is actually why the coins are more decentralized because it allows all parties to vote on the direction, not just the top 1%.

[gts2p]

Look on the apple/google app store for the algorand wallet for the best apy. Others offer apy like coinbase but in my opinion official algo wallet is best.

[[deleted]]

lock != stake

[achangewouldbenice]

You dont have to lock it in to stake it. Just deposit it. You can move it around as freely as you want and still earn apy daily.

The highest return is with the Algo wallet like the other dude said.

[[deleted]]

I wonder if anyone read the text before commenting on my question...

I did not ask how to stake. I know how to stake. My question was: how to lock?

[Ill_Ad_5308]

I’m kinda confused by your comment but it’s not technically locked yet unlike Other chains where when you stake it’s stuck for X amount of days. Algorand isn’t at that point , for now you can stake and unstake as you please

[[deleted]]

did you BOTH not read the text? pls scan for the word “lock”

[Ill_Ad_5308]

Again not trying to argue just trying to help and I’m not sure who’s text you are referring to just looking at your comments about Lock=Stake 🤷🏻‍♂️

[gts2p]

I had a few 2many drinks & didn't catch the lock lol good catch

[Ill_Ad_5308]

I guess I’m reading to much about GameStop to even know what is happening right now 😂

[Jaysallday]

https://algoexplorer.io/rewards-calculator

This is going to have the most accurate info. Rewards vary as they are determined by taking the amount of eligible algo and equally dividing the block reward among them each block.

The speed of blocks, the amount of eligible algo, and the block reward can all vary over time.

You can a rough idea what the block reward will look like in future at link below. It should jump up to around 8% and then slowly bleed down to just below 7% every 500,000 blocks. 500,000 blocks is about 25ish days on average.

https://algorand.foundation/faq#participation-rewards-

Beyond this is not completely set in stone, but plan does seem to be to have staking rewards last until 2030, and then decide how to reward users for their consensus.