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ALGO · 6d

Proposal for Participation Node Rewards

# ALGORAND PROPOSAL It is surprisingly economical to run a participation node in Algorand. A node can be deployed with a Raspberry Pi for under $200. This draft proposal is meant to help accelerate this kind of participation. [Raspberry Pi 4]( \+ [PNY SSD]( ## Why set up a participation node? One assumption of the Algorand blockchain protocol is that investors are inherently incentivized to secure the network. They are invested in Algorand, so will take steps to ensure it's ongoing success. This key assumption was demonstrably right. A frequently critique is that Algorand is not a centralized network. This is arguably true in the present. At the time of writing this, most block proposals and votes are done by large account holders. That is to say, the system will become more decentralized over time. This is a proposal to accelerate onboarding of new participation nodes. The approach to calculating block rewards is what makes the approach novel. ## What makes a network secure? In a sense, security and decentralization are two sides of the same coin, especially with Algorand. Silvio Micali's team comes from adversarial computing research. They assume that given a long enough time horizon, there will be legitimate threats to security. Algorand solves this problem by having nodes finalize transactions very quickly by an unpredictable sample of nodes. More decentralization is better in blockchain. An underappreciated aspect of decentralization is diversity. Consider the possible characteristics of a node: * Geographic location * Connection throughput * Operating system * Computer architecture * Version of algod * Memory allcoation * Virtualized or physical * Strong or weak passphrase * Clo...
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