June, 2024

In congruence with the changes planned for Algorand’s method of distributing ALGO rewards, Folks Finance will be relaunching xALGO as the primary Liquid Staking product for ALGO, providing simple, flexible access to the rewards distributed to node runners for participating in Algorand Consensus.

Changes to the Algorand Protocol

In January 2024, the Algorand Foundation published The Algorand Gambit, their roadmap for the year. Included was an ambitious plan to revamp the method of ALGO distribution, replacing the Governance model with a Consensus Reward model.

In the new model, rewards are distributed to individuals who stake their ALGO through nodes, contributing to the consensus of blocks. Previously, staking in this manner was not required to earn ALGO; rewards were distributed to Governors who committed ALGO via web app to vote on chain-wide decisions.

Secure the network and stay liquid with xALGO

Running an Algorand node is a lofty expectation for the majority of DeFi users, as it requires a high level of technical knowledge, plus an investment of time and capital. xALGO is the solution. With a few clicks on Folks, you’ll be able to commit to securing the Algorand network and be passively rewarded with ALGO for doing so. Folks Finance will run and manage nodes on the users’ behalf.

If you’ve used gALGO before, xALGO will feel familiar but with some upgrades. One of those upgrades is the removal of periodic recommitment. In the Governance model, recommitting to Governance every three months was required to be actively registered to vote and earn rewards. This is no longer a necessity; xALGO can be set-and-forget, if you like. Plus, yield will be earned continually, as opposed to a lump-sum distribution at the end of each quarter.

Keeping it simple

Overall, the transition to xALGO will lead to a more pleasant experience — a single, all-purpose Liquid Staking token for ALGO. xALGO will bolster the fortitude of the Algorand DeFi scene with deeper liquidity and more flexibility, fostering a variety of potential strategies. xALGO is also planned to be integrated around the Algorand ecosystem for wide-ranging utility in partner protocols and apps.

Stay up-to-date on Folks and xALGO by joining our social channels.

About Folks Finance

Folks Finance is a leading DeFi platform providing innovative tools for lending, borrowing, trading and managing digital assets, all in one place. Folks Finance streamlines the DeFi experience with a UI and UX competitive to centralized exchanges, all while running on permissionless smart contract technology.