Binance will be adding support for Algorand (ALGO) staking starting on Saturday (July 27).
What Is Algorand (ALGO)?
As Binance Research explained in a research report published last month, Algorand is "a permissionless, pure proof of stake blockchain that ensures full participation, protection and speed within a truly decentralized network."
Algorand's aim is "to remove technical barriers that have undermined mainstream blockchain adoption: decentralization, scale, and security."
Algorand was built by a team of "internationally recognized researchers, mathematicians, cryptographers, and economists along with proven business leaders from global technology companies." The executive team consists of Silvio Micali (Founder), Steve Kokinos (CEO), and W. Sean Ford (COO).
The total supply of ALGO is 10,000,000,000 ALGO (around 26.43% were in circulation as of 21 June 2019).
Binance's Launch of Algorand Staking
In a support article published on Friday (July 26), the Binance team described how ALGO staking rewards would be distributed:
- Starting on July 27, snapshots of users' ALGO balances will be taken daily at 00:00 UTC.
- The following two equations will be used to calculate the ALGO staking distribution:
- "ALGO generated by each user = Total ALGO staking rewards received by Binance * User holdings ratio"
- "User ALGO holdings ratio = User ALGO holdings / Total ALGO staked by Binance"
- To qualify for staking rewards, users need to have at least 2 ALGO.
- The first distribution will be calculated up to September 1, "with the total amount distributed equal to the staking rewards accrued on holdings during the period."
- ALGO rewards will be determined on a daily basis and paid out on a monthly basis.
- Staking reward distributions will be completed by the 5th of each month.
Since Binance found out that it had been staking Algorand for some time, it has decided to distribute these staking rewards (220,000 ALGO, which is worth roughly $135,000) to its users at the same time as it pays out the first distribution of the Algorand Staking Airdrop Program.
Featured Image Courtesy of Binance