The Algorand rewards are earned by everyone holding at least one Algo proportionally to their holding of Algos. Every address that holds 1 Algo or more in a non-custodial wallet is eligible to earn rewards. For addresses managed by custodians or centralized wallets/exchanges, it depends on the terms and/or policies of the custodian or wallet/exchange. The current rewards distribution is determined and funded by the Algorand Foundation (https://algorand.foundation/). You can read a detailed explanation of the Algo Dynamics.
No, currently there are no additional rewards for running a relay or participation node. The Algorand Foundation issued token grants to Early Backers and universities for running relay nodes, to help bootstrap a scalable and reliable initial infrastructure backbone. This program is now closed. Stay tuned for future updates.
This is a function of the circulating supply of Algos and of the current rewards rate. For example, in June 2020, rewards were distributed approximately every 9 minutes, to all the accounts holding at least the minimum required balance of 1 Algo.
In Algorand, the total supply was fixed at the 10 Billion Algos minted at Genesis. The distribution of these Algos in time is monitored by the Foundation and the Economic Advisory Committee. The amount of rewards distributed in each 500,000 block period is detailed in the table below (up to 13th July, 2021). The Foundation updates the participation rewards program over time, adjusting to current levels of Algo supply and tuning the program to benefit the Algorand ecosystem.
|Period||Starting Round Number||Approximate Dates||Projected Rewards (millions of ALGOs)|
|23||11,000,000||Dec 22nd, 2020 - Jan 15th, 2021||18,950,000|
|24||11,500,000||Jan 16th, 2021 - Feb 10th, 2021||19,700,000|
|25||12,000,000||Feb 11th, 2021 - Mar 8th, 2021||20,050,000|
|26||12,500,000||Mar 9th, 2021 - Apr 2nd, 2021||20,400,000|
|27||13,000,000||Apr 3rd, 2021 - Apr 28th, 2021||20,750,000|
|28||13,500,000||Apr 29th, 2021 - May 23rd, 2021||21,150,000|
|29||14,000,000||May 24th, 2021 - Jun 18th, 2021||21,500,000|
|30||14,500,000||Jun 19th, 2021 - Jul 13th, 2021||21,850,000|
As an example, in June 2020, on average, 26 Algos were distributed in each block. However, as explained in How frequently are participation rewards distributed?, actual distribution occurred approximately every 9 minutes.
The participation rewards are calculated automatically, however the compounding effect is not automatic. This is because the rewards are calculated from the last recorded balance on the blockchain, the easiest way to force rewards compounding is to send a zero Algo payment transaction to the target address on a frequent, recurring basis. This transaction will trigger the commit of all accrued rewards and record them to the on-chain balance of the account. See https://www.purestake.com/blog/algorand-rewards-distribution-explained/ for more information.
Yes, like any other wallet that is in your custody, you can receive rewards. If your cold or hardware wallet are with a custodian/exchange, then please refer to the terms and policies of your custodian/exchange.
It depends. Algos stored in custodial wallets (such as exchanges) still receive rewards as any other Algos. But technically, the custodian is receiving these rewards because it owns the address where the Algos are stored. Please refer to the terms and policies on your custodians’s website.
Binance offers custodial services, thus they can distribute the rewards to their users as per their terms and conditions. They receive staking rewards as of any other Algorand address holding at least 1 Algo. Please refer to the terms and conditions on Binance website.
Yes, the official Algorand wallet is available to download on Apple & Android devices from https://www.algorand.com/wallet
The official wallet is the Algorand Wallet: https://www.algorand.com/wallet.
Algorand does not have an approval policy for wallet support, and each wallet operator makes its own determination to support a cryptocurrency. A partial list of wallets supporting Algo and information related to wallets is available from the the Algo Ecosystem page. The security of these wallets should be checked with the vendor directly. Algorand makes no representations regarding the functioning or security of third party wallets, and disclaims any liability therefor.
As of version 4.6.0 you can find your address by clicking on the button shown below in red.
The 200M staking rewards program, colloquially known as the Super Staking Rewards, is a staking program which rewards the community with 200 million Algos, to those who share the vision for the long-term success of the Algorand network and its technology. The 200M staking program was fully subscribed by the August 31st, 2019 deadline.
Participants have an opportunity to earn a return of 100% over a 2 year period. The return rate could increase if some users disqualify themselves from the program. The Algos which the disqualified users would have received are returned to the reward pool to be distributed among the remaining eligible users.
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 this published distributed schedule:
|Period||Staking Rewards Program Distribution Dates||Amount Of Staking Reward Algos Distributed|
|Period 1||March 1, 2020||50,000,000|
|Period 2||Sept 1, 2020||50,000,000|
|Period 3||March 1, 2021||50,000,000|
|Period 4||Sept 1, 2021||50,000,000|
https://algorand.foundation/200million-staking-reward-program-launch provides further information on the program.
There are 3 possible reasons that one does not receive the 200M Staking Program rewards:
If you are a registered account in the 200M Staking program,, KYC can be completed through https://tsm.coinlist.co/algorand-foundation-staking-compliance/.
When you go through the KYC process with Coinlist, they will ask you to input your staking wallet address(es). This way, your KYC verification is linked to your wallet(s). For Coinlist KYC compliance go to https://tsm.coinlist.co/algorand-foundation-staking-compliance/
No. It is fully subscribed.
A rekeying operation is an Algorand transaction and incurs a transaction fee. The transaction fee may depend on the used software. It is generally 0.001 Algos. You must ensure that the account balance remains above the minimum qualifying balance even after paying this fee.
Under this assumption, rekeying an address in the 200M staking program without moving any Algos is safe. However, rekeying is an advanced operation and we strongly advise you to first test the full process with an account that is not subscribed to the 200M program.
There are no current regulations in the EU which would affect this. We will update the community in this eventuality.
The Max Supply for Algo is the 10 billion Algo minted at genesis.
Even though the entirety of the supply was minted at the launch of the network, thus giving Algorand a fixed outstanding supply, the liquid supply will increase as pre-minted tokens unlock and are distributed.
The Foundation recently proposed a revised, long term Algo Dynamics model. Designed to run for a greater than 10-year period- that is up to 2030 and beyond - this new model will focus on programs around ecosystem support, community incentives, and the decentralization of decision making and governance on the Algorand blockchain - a long-held goal of the Algorand community. For more information on Algo supply and distribution see Long Term Algo Dynamics.
The Foundation’s stake is 500M Algos (and the participation rewards thereof). This stake participates in the consensus protocol contributing to the protocol’s integrity.
At block 13,116,043 (April 9th 2021), the circulating supply was 5,254,775,087 Algos. Different sites list different amounts as they view the market supply data through different methodologies. You can see the current circulating supply on AlgoExplorer and PureStake’s GoalSeeker. Messari is another resource which gives a great overview of circulating supply and supply methodology.
A good description is available on our Foundation Algo Dynamics page.
The Algorand Foundation burnt the tokens from the initial auction that were refunded. For further information see:
Currently, there are no additional rewards for running a relay node. The Algorand Foundation issued token grants to Early Backers and universities for running relay nodes, to help bootstrap a scalable and reliable initial infrastructure backbone. This program is now closed. Stay tuned for future updates.
The vast majority of Early Backers receive rewards according to the schedule in https://prismic-io.s3.amazonaws.com/algorandfoundationv2/d56c195e-53bc-4112-a1ba-a70bfbb612f9_EIP-11252019AF_+Conditional+Accelerated+Vesting+Nov+30.pdf.
Algorand Inc, Algorand Foundation, and Early Backers including universities and commercial entities are running relay nodes.
As of Jan 2021, there is just over 100 relay nodes.
Currently, the Algorand Foundation manages the official list of relay nodes, to bootstrap a scalable and reliable initial infrastructure backbone. Having said this we need to draw your attention to the important fact that the security of the protocol holds even if all the relays behave in a malicious way. As long as sufficiently many participation nodes (in terms of stake) are behaving honestly, the blockchain cannot fork. Furthermore, anybody with an Algorand account can run a participation node.
We are working on a model where the decisions on relay nodes will be done in a more decentralized way.
The group sometimes referred to as the Relay Node Runners group, came into existence at mainnet launch and should correctly be referred to as Early Backers and Node Runners. This group consists of early investors, commercial entities and non-profits (Universities) who made commitments to support the project and to also run relay nodes to provide the decentralized infrastructure of the blockchain in the early life of the protocol. This group is committed to support the required Relay Node infrastructure of the Algorand blockchain up to 2024. At this point, some of the current participants may decide to discontinue running Relay Nodes.
For now, the Foundation has not yet agreed a long term incentive plan to encourage new Relay Node runners to participate, if required, in 2024. The Foundation will engage with the Algorand community, nearer to that date, to evaluate what potential incentive programs are required to onboard new Relay Node Runners. See also technical question below.
The Foundation refers to this group as Early Backers and Node Runners and their Rewards as Early Backers Incentives Vesting. These Early Backers of the project were allocated 2.5B Algos at launch, because of the role they had in supporting the project in the early stages (in addition to the commitment to run Relay Nodes for a period). These Algos were not immediately transferred to them: they are kept in locked wallets to be gradually distributed to Early Backers.
The distribution period was originally set to be 2 years, but in the first months after launch this distribution rate turned out to be inflationary, due to the tiny Algo supply circulating in the market at that moment. Consequently, the EAC led the Foundation to execute an Economic Improvement Proposal, voted on the blockchain, by which the Early Backers accepted extending the unlocking of tokens from to 2 to 5 years, so that, for example, in 2020 only 3% of the of the 2.5B were distributed, rather than the 50% that was originally planned. As part of the agreement that reduced inflation by changing the contracts with Early Backers, an additional 600M of contingent rewards were assigned to Early Backers in return for agreeing to extend their vesting time, with a mechanism called Automatic Vesting Acceleration that makes the unlocking of tokens increase only if (a moving average) of the Algo price reaches new historical high. The explicit reason for this was to align the incentives of the Early Backers to those of the larger community.
No. Vesting acceleration happens only when the 1-month moving average of the price reaches new highs. When the vesting acceleration started, 30 cents was the first level of the 1-month moving average making vesting accelerate, but after that vesting acceleration happened only at higher and higher levels of the moving average of the price. Vesting acceleration can have the effect of generating an outflow of Algos when the moving average reaches new highs, but also the opposite effect of encouraging Early Backers to hold further. The mechanism has no predictable price effect and is automatic and transparent.
As for the second question, the Foundation never engages in any form of price stabilization.
Only released tokens to Early Backer & Node Runner Incentives can participate in consensus and governance. Thanks to the agreed gradual release, the amount of Algos unlocked so far towards Early Backers and Node Runners amounts to a minority of the unlocked Algos that can participate in consensus and governance (not to mention that they are a collection of unrelated and potentially competing companies, individuals and institutions). They cannot control either governance or consensus. Additionally, part of the Algos unlocked towards Early Backers and Node Runners has probably been sold by them in the market, particularly in 2019, making their staking even less relevant. Many others are likely to hodl their Algos as long term supporters and in some cases they have publicly announced to be using their resources for investing in the Algorand ecosystem (e.g. Borderless Capital). Those who have not sold their Algos so far can be considered reliable supporters, so we treat them like any other hodler. Having them lock their Algos to participate in governance should be considered a positive fact for the Algo ecosystem and tokenomics.
It is important to clearly state that the Inc and Foundation are not the same entity nor the same people. The Foundation has no seed investors. The Algorand Foundation is a not-for-profit, community organisation focused on protocol governance, token dynamics and supporting grassroots, open-source development on the Algorand ecosystem. The entire team of the Foundation can be viewed here. Please see relationship between Algorand Foundation and Algorand Inc for more information.
To clarify, consensus on the Algorand blockchain is run by Participation Nodes, not the Relay Nodes. Participation Nodes on the Algorand network are both public and permissionless. Therefore consensus participation on the Algorand blockchain is public, permissionless and decentralized. While relay nodes do not participate in consensus, having highly reliable relays is critical to the performance of the Algorand blockchain. That is why, currently, the Algorand Foundation maintains the list of relays to ensure relay nodes satisfy the necessary performance requirements and do not slow down the blockchain. As part of our current roadmap, we have plans to further the ability to run Relay Nodes on the Algorand Network. One approach being evaluated is to start by using two lists of relays: the current one fully vetted by the Algorand Foundation to keep the network high performance and a second one that is permissionless. Nodes would then connect to relays on both lists allowing best of best world: decentralization and performance. As we move to a permissionless mechanism for Relay Node Running, the Foundation will work with the community to agree an incentive program to support running this infrastructure.
The existing participation rewards program is under community review as part of the discussion around decentralization of governance. Given that this program to bring us to 2030 is not finalized, it is too early to say what the program will be after 2030.
If you are interested please refer to the following documentation on how to set up a participating node: https://developer.algorand.org/docs/run-a-node/setup/types/#start-node and https://developer.algorand.org/docs/run-a-node/participate/.
A participation node can be run for any Algorand account, whatever its balance is.
Note however that any Algorand account must have a minimum balance of 0.1 Algo.
Currently, there are no extra rewards for running a participation node.
The Algorand Ambassador rewards program is the opportunity to become a key leader among the worldwide Algorand blockchain community. You can become part of an amazing group who believe in the potential of the Algorand blockchain and are helping to build local communities, focused on sharing knowledge and insights on the development of the blockchain ecosystem. The Algorand Foundation has created a global program to reward our greatest partners for the work they are doing to create vibrant Algorand communities. Ambassadors are rewarded in Algos for engaging the community, content creation and growing the ecosystem. Full details are available at https://community.algorand.org/ambassadors/
For information on the Algorand Ambassador rewards program and how to apply to become and Ambassador go to https://community.algorand.org/ambassadors/.
The Algorand Foundation is committed to development and building on Algorand. We have recently launched (April 2020) our multi-year 250M Algo Grants Program where we provide funding across research, development tools and infrastructure, applications & use cases, and education and community. We have numerous grant mechanisms supporting these categories. https://algorand.foundation/grants-program
The Algorand Foundation in partnership with Borderless Capital and Longhash ventures launched in June 2020 the Algorand Asia Accelerator program which provides seed funding with opportunities for additional investment for building on Algorand. The program is centered on finance, supply chain, IoT, Web 3.0 and Gaming. The Algorand Europe Accelerator launched in October 2020 and is a collective initiative between Eterna Capital, Borderless Capital, and the Algorand Foundation, supporting blockchain startups and entrepreneurs with an emphasis on Europe to build decentralized applications on Algorand blockchain.
The Algorand Foundation operates independently from Algorand Inc. The Algorand Foundation is a not-for-profit, community organisation focused on protocol governance, token dynamics and supporting grassroots, open-source development on the Algorand ecosystem. Algorand Inc is focused on layer-1 development of the Algorand Protocol and enabling Enterprise adoption of Algorand blockchain technology. The Foundation and Inc. collaborate on exciting projects and initiatives to customize the value that we can bring towards the great Algorand community.
No, sending and transacting with an ASA costs no more than sending and transacting with Algos.
There is some indirect cost as the minimum balance required in the account must be higher if it also holds ASAs. If the account only holds Algos then the minimum balance is 0.1 Algos. If there are ASAs then the required minimum is: 0.1 Algos times the number of ASA it holds plus one. For example, an Algorand account holding USDT must have a minimum balance of 0.2 Algos.
See https://developer.algorand.org/docs/features/asa/#assets-overview for further information.
At the moment, the Algo wallet receiving Algorand blockchain transaction fees is held by the Algorand Foundation. For the near term, the amount of Algo accumulating in this wallet is and will continue to be modest, based on the 0.001 Algo/transaction fee. Once the daily transaction level reaches a threshold, where the amount of Algo held in the wallet is material, the Foundation will engage with the community on how best these accumulating fees can be leveraged to support the ecosystem. As it currently stands, Algos in a fee sink can only be sent as participation rewards. A consensus upgrade has the possibility to change this should the community elect to do so.
The Algorand Foundation has no plans to review the transaction fee levels of the Algorand blockchain currently. As the steward of the Algorand ecosystem, the role of the Foundation would be to facilitate the wider Algorand community and ecosystem making that decision, if there is a proposal to examine that from within the community at any point in the future.
Exchanges include Binance, Coinbase, Huobi, OKEx, Bittrex, Kraken and Bitfinex. You can see a list of exchanges on our Algorand Ecosystem page.
The second and final refund redemption window is now closed. For further details on our now closed refund redemption’s check out https://algorand.foundation/2019-algo-auction-participants & https://algorand.foundation/early-redemption-outcome
Algorand and the Algorand Foundation have a vision for the borderless economy. At its most basic level, this is a digital economy where anything of value can be traded between two or more parties without the friction of current financial networks.
The ongoing development of layer-1 features of the Algorand protocol is performed by Algorand Inc, under contract to the Algorand Foundation and as such, the teams of developers who build the Algorand layer-1 protocol are in the Algorand Inc. organisation.