Algorand is a new cryptocurrency utilizing a “Byzantine Agreement on Steroids” consensus protocol that proposes a solution for blockchain scalability, long transaction confirmation times, and the high energy consumption with Proof-of-Work (PoW) blockchains.
Binance will start staking their Algorand (ALGO) cold and hot wallets, starting from July 27, 2019 and will automatically airdrop staking rewards monthly to ALGO holders. An additional 220,000 ALGO from prior staking activities will also be distributed to ALGO holders. To qualify for staking rewards simply hold a minimum of 2 ALGO in your Binance wallet and receive free ALGO based on the total staking rewards by Binance. Staking is done automatically by Binance, so there’s no manual action required.
Step-by-Step Guide :
- Create an account on Binance.
- Hold a minimum of 2 ALGO in your Binance wallet to qualify for staking rewards.
- Binance will take daily snapshots starting from 2019/07/27 at 00:00 AM UTC and distribute rewards monthly.
- ALGO staking distribution will be calculated as follows:
- ALGO generated by each user = Total ALGO staking rewards received by Binance * User ALGO holdings ratio.
- User ALGO holdings ratio = User ALGO holdings / Total ALGO staked by Binance.
- Rewards will be calculated daily and distributed on the 5th of every month. The initial distribution of ALGO staking rewards will be calculated up until 2019/09/01 and the average user ALGO balances will be calculated based on the daily snapshots and the staking rewards will be distributed on September 1st, 2019.
- An additional 220,000 ALGO from prior staking activities will also be distributed to ALGO holders based on their average daily holdings.
- Staking is done automatically by Binance, so there’s no manual action required.
- For more information see this Binance post.