# CompX Consensus Implementation

One of the requirements for Algorand consensus rewards is that the node has to have at least 30,000 Algo paired with it to be eligible for rewards. That may be to large of a stack of Algo for many individual users to put aside for consensus. Add to that there is a certain amount of technical tolerance needed to acquire, configure and maintain a node for an individual user that could provide a hurdle.

Given these challenges, CompX is providing a turnkey solution for users that want to contribute to the security of Algorand and earn a return on their stake. The charge for this service is a small 8% of rewards earned through the consensus process.

CompX has opted to participate in consensus using a liquid staking token (LST) called cAlgo. cAlgo tokens are minted by users when depositing Algo on the CompX node through our smart contract. The token is minted and deposited into the users wallet as a place holder that can be used in the broader defi ecosystem in lieu of the Algo that's busy earning a yield. The cAlgo token is exchangeable at all times for the underlying Algo it represents. To get the Algo back, a user will initiate a burn transaction, which removes the cAlgo from their wallet and pulls the commensurate amount of Algo off the node and into their wallet.  The power of cAlgo, is that as the node proposes new blocks and is allocated rewards, the token gains in value compared to Algo. This means that the token is interest bearing and auto-compounding by design.

It may be worth it to discuss a liquid staking token and how it works to efficiently appreciate in value in a thought experiment.
