What changed in 2025.
Algorand's previous governance reward program ended in Q1 2025. Under governance, ALGO holders periodically committed to votes on protocol proposals and earned rewards for participation. The model worked but was administratively heavy and required active participation. The new staking model is simpler: holders either run a node themselves (with the 30,000 ALGO minimum), or deposit into a liquid pool, and earn rewards passively. The transition was deliberate and is final. Any guidance written before 2025 about Algorand governance rewards is now historical. The current path is staking — native or pool.
Path detail — native node operation.
If you hold at least 30,000 ALGO, you can run a native staking node and earn rewards directly from the protocol. This requires: ALGO deposited as the node's balance, hardware capable of running the Algorand node software (minimum 8 GB RAM, 100 GB SSD recommended), reliable internet connection with low downtime, and operational discipline (security patches, monitoring). The Algorand Foundation publishes current node setup documentation; the technical requirements have not changed materially since the staking transition. Yield from native node staking varies with overall network participation; historical rates have been in the 4-7% APY range, though this is not a guaranteed return. For users with the holdings and operational capacity, native node staking offers the highest yield (no pool fees, no token-wrapper risk) and contributes to network decentralization.
Path detail — liquid staking pools.
If you hold less than 30,000 ALGO — which is most ALGO holders — liquid staking pools are the practical path. The largest current Algorand liquid staking provider is Folks Finance. The mechanism: you deposit ALGO into the pool's smart contract; the pool aggregates deposits across many users and uses the combined balance to participate in network staking; the pool issues you a receipt token (gALGO) representing your share; gALGO accrues staking yield over time; exchange gALGO back for ALGO when you want to withdraw (cooldown periods may apply). Trade-offs: pool fees reduce net APY (a small percentage of gross yield, varies by operator); you take on smart-contract risk for the pool contract; your ALGO is not directly available — you hold gALGO until exchange. Benefits: any holdings size works, no node operation required, gALGO can sometimes be used as collateral elsewhere in DeFi. For most users with sub-30K ALGO holdings, a reputable liquid pool is the realistic option. See how to stake under 30,000 ALGO for the full walkthrough, or wallet comparison for staking-supporting wallets.
Withdrawal and unwinding.
To withdraw from a liquid pool, you exchange your receipt tokens (gALGO) back for ALGO at the current exchange rate. The exchange rate at withdrawal includes accrued staking rewards, so the ALGO returned is typically more than the ALGO deposited. Most liquid pools impose a cooldown period (typically 1-7 days for Folks Finance) between requesting withdrawal and receiving ALGO; this protects the pool's underlying stake from sudden mass exits. Plan withdrawals with the cooldown in mind, especially if you intend to use the ALGO for time-sensitive transactions.