Rewards Mechanism Confusion - Please help

Hello there,

So, from Overview - Algorand Developer Portal we have this information:

But then in algorand .foundation/ governance/algo-dynamics we have this:

" Following the spirit of Silvio Micali’s [proposal](algorand. com/resources/blog/decentralizing-algorand-governance-nov2020) on innovative community governance, we are moving from the initial reward design, aimed to benefit all participants to the Algo network in the initial phase of Algorand, to a new reward system benefiting the participants, existing and future, who commit to participate in the governance of the ecosystem and prove their commitment by locking their Algos for a potentially long term . Long term commitment is necessary to align incentives, since participants will have a crucial role in allocating funds to different projects that unfold over an extended period of time. Thus, the level of these rewards will be very competitive, as detailed below. The shift from current to future reward design will be implemented through a balanced and prudent transition process and is expected to have an important, positive effect on tokenomics."

So, can anyone please explain me how Rewards mechanisms are working at this moment and if this will change at any moment, when and how so?


The current rewards mechanism is based solely on the number of algos you hold. It does not matter if you participate in consensus by running a node. In fact no rewards are currently offered for running a node.