Algorand native staking F.A.Q.
Algorand native staking F.A.Q.
Staking with your own Algorand node.
Is this article for me?
This FAQ focuses on native staking with your computer. Keep in mind there are other options as well. Native staking provides the most benefits to protocol decentralization and the node runner but requires the highest level of time and technical involvement.
Node running F.A.Q.:
Q: Do I need to keep my node running 24/7?
Yes, if you want to keep your eligibility at 100%.
Every hour, a small random portion of accounts is challenged. Their respective nodes must respond within 10 minutes with a heartbeat. Failure to report in that window results in the account’s eligibility being revoked. One must re-register with 2 Algo fee to become eligible again.
Consider registering for alerts and enabling node telemetry with Nodely.
Q: Is my Algo locked up on the node?
There is no lockup when you participate with your node. You move your Algo freely; you can even go below the 30K Algo threshold temporarily, and it will not revoke your eligibility.
You can send some or all of your Algo to participate via DeFi platforms but remember that your node earns rewards only while there is at least 30K Algo in your private account.
Q: Are the rewards up yet?
Protocol rewards will be up in Dec’24 / Jan’25. Any kind of rewards that one might get for holding Algo now are not related to the permissionless incentives that will be introduced in the next protocol upgrade.
Q: What happens when I go below or above the eligibility threshold?
Going above or below just stops the rewards. No action is needed to restore rewards other than getting back within the range.
Algorand protocol rewards you only if your account has been registered or unsuspended with the special 2 Algo fee, is actively voting on some node and the amount in your account is between 30K and 70M Algo.
Q: How do I register/connect my account /participation keys?
Connecting your node with your account is escribed in this guide.
Upcoming wallet upgrades will make this process as simple as scanning a QR code shown on the node’s terminal.
Q: Can I set up the node now and just wait for rewards?
Action is required to become eligible. You will need to re-register your account with a special, one-time, 2 Algo transaction after the Algorand protocol upgrade in Dec’24 / Jan’25.
Best to wait with the node installation for the Hack-TUI utility that automates installation, fast-catchup and the key registration.
Q: Can I use my Windows or desktop machine for the node?
Any computer meeting the hardware requirements will do, but not all operating system versions are designed for 100% uptime. Desktop or laptop PCs might be optimized for power saving and suspend/shutdown when idle. This may cause your eligibility to be revoked.
Consider running your node on a Linux server machine at home or in the cloud that is otherwise unoccupied. This will get you closer to 100% of your potential rewards.
Q: What Internet connection do I need? Is 200Mbps enough?
200Mbps downstream is enough to run an Algorand node with a participation key.
You might consider a faster, symmetrical up/down, link if you plan on running your node as P2P relay later in the future.
Q: How long are the epochs ? When are the rewards transferred?
Algorand protocol rewards participation immediately —directly to your account on the same block your node proposed.
Reti staking pools have delayed rewards , paid out in epochs — as configured separately by each pool creator. You might consider using your node to host such a pool and get others to stake with your node.
Q: What are the penalties? What does slashing look like?
Algorand has no deposit other than the initial 2 Algo registration fee. There are no other lockups, and no slashing if your node misbehaves.
You need to re-register you account with 2 Algo fee each time it got suspended for not voting on time.
Q: How long is the initial node sync/catchup?
By default, your node will do a full catchup that needs to process almost 2TB of data downloaded from the network. It might take 2 weeks unless you choose to do a fast-catchup that takes only 2 hours.
Most users choose the fast-catchup method as trust issues have been resolved with the introduction of state proofs.
Q: Can I store my Algo on a Ledger device?
Yes, your Algo can be in a hardware / cold wallet and still participate.
You only delegate voting rights to your node by signing participation keys using your wallet. Participation keys only allow your node to propose blocks and certify other blocks on behalf of your account but not spend any of your Algo.