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Key Takeaways:
- Algorand has upgraded to real-time staking rewards and diversified user participation methods.
- Its use of VRFs and the NTT standard make it both secure and interoperable.
- Real-world applications like the Pera card, Lofty real estate, and the chess passport show Algorand’s readiness for mainstream adoption.
Algorand is redefining what decentralized finance and staking participation mean in 2025. At a recent Cointelegraph AMA, Algorand Foundation’s Chief Strategy & Marketing Officer, Vanlerberghe, revealed the blockchain’s new approach to staking, governance, and real-world use cases. The shift comes after early ambitions around a “pure” proof-of-stake system revealed centralization risks, with nearly 70% of all tokens ending up with the Foundation.
To address this, Algorand now distributes staking rewards in real time, directly with each new block, creating faster, more equitable incentives for participants.
Real-Time Rewards and Flexible Staking Options
Under the new system, users can stake ALGO tokens by running a node, joining Reti Pools, or participating through Valar Staking. Liquid staking has also been made available, enabling tokens to remain usable across Algorand’s growing DeFi ecosystem.
Unlike traditional staking methods that lock funds or require minimum thresholds, Algorand’s updated proof-of-stake model leverages verifiable random functions (VRF). This cryptographic lottery system ensures fair, unpredictable validator selection, enhancing both decentralization and network security.
Blockchain Interoperability Through Wormhole NTT
To further advance cross-chain functionality, Algorand has implemented the Wormhole Native Token Transfers (NTT) standard, co-developed with Folks Finance. This model uses a burn-and-mint mechanism, eliminating the need for bridges or wrapped tokens. Tokens sent to another blockchain appear there natively, opening up secure, seamless transferability for assets like stablecoins.
This breakthrough supports the launch of multichain assets and removes risks often tied to smart contract bridges.
Real-World Blockchain Applications: Payments, Property, and Chess
Algorand’s commitment to real-world utility is already visible. The Pera Mastercard, linked directly to the Algorand blockchain, allows users to spend USDC instantly anywhere Mastercard is accepted. Unlike many crypto cards, Pera settles transactions on-chain at the moment of purchase—offering true blockchain-native payments.
Another standout project is Lofty, which tokenizes real estate on the Algorand network. Each property is managed via a DAO, allowing for decentralized ownership. The tokens are tradeable, usable as DeFi collateral, and enable fractional ownership—revolutionizing real estate investing.
Also Read: Tether Phasing Out USDT on Five Blockchains, Including Omni and Algorand
Vanlerberghe also highlighted Algorand’s work with World Chess on a universal chess passport. This digital ID securely tracks a player’s rating and history across all federations and platforms, streamlining tournament participation and verification.
Algorand is emerging as one of the few blockchains combining cryptographic innovation with scalable, real-world solutions. With a major DeFi-focused beta campaign set for September 2025 and a clear focus on usability for developers and institutions alike, the network is gearing up to deliver on its long-standing promise.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
