Inclusive program offers participants an opportunity to earn a return of more than 100% for holding Algos and supporting the network
Singapore — August 6, 2019 — The Algorand Foundation announced today a staking rewards program that will reward its community with 200 million Algos, and bring additional opportunities and reward to those who share its vision for the long-term success of the Algorand network and its technology.
The program provides 200 million Algos to registered participants, allowing them to increase their position in Algos by holding the token. The rewards will be distributed over the course of four 6-month periods, a total of two years, to qualifying participants who commit by registering (via a micro transaction) by block number 1618450, which is expected to happen on August 31st, 2019. Only the first 200 million Algos across the registered wallets will be eligible.
“The Algorand Foundation is following through with programs that demonstrate their long-term vision and reward all users for supporting the protocol,” said Massimo Morini, member of the Algorand Foundation’s Economic Advisory Committee. “I am pleased the foundation has launched this staking rewards program for the entire community as another important step in the growth of the Algorand network.”
Participants have an opportunity to earn a return of more than 100% by participating in the program. The return rate could increase if some users choose to voluntarily disqualify themselves by dropping out of the program. The Algos which the disqualified users would have received are returned to the reward pool to be distributed to the remaining eligible users.
The entire reward pool is fixed, and 50 million Algos will be distributed on a stake weighted basis to remaining qualifying participants at the end of each 6-month period, according to a published schedule.
For more information about the staking program, please visit algorand.foundation/stakingrewards.
About the Algorand Foundation
The Algorand Foundation is providing the trusted infrastructure needed to support the growth of a borderless economy with an approach that is decentralized by design. With research led by Dr. Tal Rabin, a 2018 Forbes World Top 50 Women in Tech, the Algorand Foundation is incorporated in the Republic of Singapore.
For more information, visit algorand.foundation.
To be eligible for this program, should I wait till August 31 to register or I can register now?
Yes you can register now. In fact you should register as soon as you have decided to participate, as the program is on a first come first serve basis for the first 200 million Algos in registered wallets.
What happens if I add 20,000 Algos tomorrow to a registered wallet and then remove 20,000 Algos from that wallet two days later and put them back on the last day?
When you withdraw 20,000 out of the registered wallet, it frees up 20,000 in the program. When you add them back in later, they’re behind anything that is come in the meantime.
Can I register an account with fewer than 25algos and then use it later?
Yes, however, the account must have 25 or more Algos in it by block 1618450 to be eligible for the staking program, provided that the program has not reached the 200 million limit.
If fewer than 200 million Algos are staked in registered wallets before the deadline, will the 200 million staking reward Algos drop?
Yes, the full 200M will be allocated during the course of the program. This means that if only 100 million Algos stake in registered wallets, program participants start with a guarantee of 2 Algos from the staking rewards program for every 1 Algos they put into the program.
If people withdraw their balance during the 2 year staking period, will the surplus be allocated to other accounts?
Yes, all rewards for that period are divided among eligible participants. For example, if 100 million Algos are staked in registered wallet at the beginning, and 40 millions are disqualified during the first 6 months, and the rest 60 millions stay staked throughout the 2 year period, there would be 200 million Algos being distributed on a stake weighted basis to the 60 million qualifying Algos staked in the registered wallets.
If I decided to withdraw Algos from my registered wallet after the first 6 months, will I receive the first period (6 month) rewards?
Rewards are paid out at the end of each 6 month period. Please maintain the original balance of your registered wallet through reward distribution to ensure you receive the reward. If you disqualify by withdrawing your Algos (or dropping your registered wallet below the original amount you entered the program with) prior to the distribution for that period, you will not receive the reward.
I have my Algos on an exchange. Will I qualify for the staking program? Or do I need to download a new wallet?
Having tokens on an exchange account may prevent these tokens from participating in the 200M staking rewards program. Please contact your exchange to determine whether and how they will enable their clients to participate in the program. We would hope that all exchanges who register for this program would share the rewards with their users. If your exchange does not offer to register for the program you can consider moving your tokens to a new wallet and registering that wallet.
Very important note: sending the micro-transaction to ZGP25YTZL3NF43SQZREMH5BRBTJEXHWPL6TSQDCGJWPEN4XJTIHVOZSOLA using the exchange's key will most likely register the account holding all the Algos of the customers of the exchange, rather than your personal account on the exchange. This will not achieve the desired result of registering your account.
The wallet balance will be captured by snapshot at block number "1618450": What does this mean?
Yes, the minimum wallet balance used to determine staking rewards the first period is the balance as captured by snapshot at block number 1618450, which is expected to occur on August 31, 2019. Registered wallets will be monitored regularly. As soon as a registered wallet drops below its initial balance, it will be disqualified. After each staking rewards distribution (at the end of each period), the minimum balance will increase to include the staking rewards that will then be in that wallet.
How does the first come first serve basis work? Let’s suppose I register an account with 25 Algos today and then I add 200M Algos to that registered wallet on Aug 31. Will anybody registering after me not get any staking reward because of that?
Algos are counted towards the 200M cap in the order in which they are added to registered eligible wallets. If you register today with 25 Algos and then add 200M on Aug 31, your 200M Algos will be behind any other Algos that have been deposited to eligible wallets between now and Aug 31.
Does the account balance include participation rewards?
No, the account balance as counted during the snapshot at block number 1618450 does not include participation rewards for that account. It only includes rewards that were already added to the account balance before that round.
Some addresses have secret keys that are held in cold storage, and cannot be used to send transactions to the network without becoming hot. For these type of addresses, and these addresses only, we establish here an alternative registration process, replacing Step 2 above.
You may register such an address by sending a transaction from any other wallet, where the address that you want to register is specified in the note field. The transaction must be sent to the same registration address ZGP25YTZL3NF43SQZREMH5BRBTJEXHWPL6TSQDCGJWPEN4XJTIHVOZSOLA
but the sender can be any other wallet. The notes field of that registration transaction must have the format “Registration: <address>”, specifying the address that you want to register. Such a transaction only initiates a manual process to register the single address in the note field (and does not register the sender address).
After this transaction is posted to the network and you know its transaction-ID, you must also send email to [email protected], in the following format:
Subject: Alternative registration for the 200M Staking Rewards Program
I would like to use the alternative registration procedure for the 200M Staking Rewards Program. <Add an explanation why you cannot use the normal process>
Registered address: <address>
Registration transaction: <transaction-ID>
Contact person: <Name>
Contact email: <email address>
We will then follow up with you with a manual verification process, designed to check that you really have a valid technical reason for using this alternative process. If we are satisfied that you are eligible for this alternative process, we will post a confirmation transaction to the network, sent from the registration address ZGP25YTZL3NF43SQZREMH5BRBTJEXHWPL6TSQDCGJWPEN4XJTIHVOZSOLA
to itself. The notes field of that confirmation transaction will have the format “Confirmation: <transaction-ID>, <address>”.