Algorand's transition from governance to staking rewards marks a significant shift in how participants can earn rewards while contributing to network security. This change brings more flexibility and accessibility to all ALGO holders.

Key Benefits of Staking

• No lock-up periods - access your ALGO anytime
• Simple technical requirements for node runners
• No slashing penalties - ineffective nodes only forfeit rewards
• Accessible to all holders through liquid staking options
• Focuses on continuous network security rather than periodic voting

Staking Requirements

Minimum requirement of 30,000 ALGO applies only to direct participation. Smaller holders can participate through liquid staking providers or pooling protocols.

How to Start Staking

For holders with less than 30,000 ALGO:

1. Access the Stake Portal in Pera wallet
2. Choose your preferred staking provider
3. Deposit ALGO and begin earning rewards

For holders with more than 30,000 ALGO:

• Use the above method, or
• Run your own node using Algorand NodeKit

Future of Governance

• General governance continues in a more fluid, referendum-style format
• xGov program relaunch focuses on retroactive grants for ecosystem builders
• New xGov council will evaluate proposals
• Algorand Foundation will initially manage the platform before community transition
• Foundation retains emergency veto power for critical situations

Network Participation

Stakers maintaining control of their ALGO (solo stakers) retain voting rights in future governance sessions. This new system enhances network security while offering participants greater flexibility in managing their assets.

Important: Do not withdraw funds from governance until after receiving GP14 rewards.

Through staking, participants support Algorand's decentralized ecosystem while earning rewards through a more accessible and flexible system.

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