FAQs
- Participation Rewards
- Wallets
- 200M Staking Program
- Supply
- Running Nodes
- Participation Nodes
- Ambassador Program
- Ecosystem Funding Mechanisms
- Miscellaneous
Participation Rewards:
What do I need to do to earn participation rewards?
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 (https://algorand.foundation/algo-dynamics).
Will I get better rewards by running a relay node? Will I get better rewards by running a participation node?
No, currently there are no additional rewards for running a relay or participation node. The Algorand Foundation issued token grants to early supporters 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.
How frequently are participation rewards distributed?
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.
What is the current rewards rate?
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 6th Oct, 2020). 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) |
|---|---|---|---|
| 15 | 7,000,000 | Jun 1st, 2020 - Jun 25th, 2020 | 13 |
| 16 | 7,500,000 | Jun 26th, 2020 - July 21st, 2020 | 13 |
| 17 | 8,000,000 | July 22nd, 2020 - Aug 16th, 2020 | 13 |
| 18 | 8,500,000 | Aug 17th, 2020 - Sept 11th, 2020 | 13 |
| 19 | 9,000,000 | Sept 12th, 2020 - Oct 6th, 2020 | 13 |
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.
Is compounding rewards automatic?
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.
Can I receive Algo rewards with a cold storage wallet or a hardware wallet like the Ledger Nano S?
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.
Do I still earn participation rewards if I store my Algo in an exchange like Binance or Coinbase?
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.
Why is the participation reward yield different on Algorand and on Binance for example? Why is Binance distributing rewards at different intervals?
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.
Wallets
Is there an official Algo wallet?
Yes, the official Algorand wallet is available to download on Apple & Android devices from https://www.algorand.com/wallet
Are there other wallets which support the Algo? (Atomic wallet, Algorand wallet, MyAlgowallet, etc)? Do you have a list of all the genuine/approved wallets available?
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. Here is a partial list of wallets supporting Algo and information related to wallets is available from the following links. 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.
Bitpie Wallet (Bitpie - Hi Blockchain)
Cobo Wallet (Cobo Wallet: Cryptocurrency Wallet | Staking Wallet & Mobile App)
Ledger Hardware Wallet (https://www.ledger.com/) both Ledger Nano X and S
Atomic Wallet (https://atomicwallet.io/)
Coinomi (https://www.coinomi.com/en/)
MyAlgoWallet (https://wallet.myalgo.com/ (by Rand Labs)
Blockchain.com (https://www.blockchain.com/wallet) (certain functionalities are available now)
Where can I find my address in the mobile wallet?
As of version 4.1.0 you can find your address by clicking on the button shown below in red.
200M Staking Program (also known sometimes as Super Staking Rewards Program):
What is the 200M Staking Program and how do I participate?
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.
How much do you earn in the 200M Staking Program?
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.
When is the payout of the 200M Staking Program?
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.
Why didn’t I get my 200M Staking Program rewards?
There are 3 possible reasons that one does not receive the 200M Staking Program rewards:
- Participation qualification. The 200M staking program was fully subscribed by the deadline which occurred on August 31th, 2019. Only accounts on the list of registered accounts are eligible to participate.
- Reward eligibility. Participants are required to maintain minimum balance throughout the reward period (there are four 6-month periods) to be eligible for the staking rewards. See detailed rules here.
- KYC process. In addition, participants are required to perform KYC to be able to receive the distribution of their staking rewards. Rewards will only be distributed (during the distribution windows) after the eligible participants complete the KYC process. However, Participants who have not completed their KYC by Aug 23, 2021 will be considered to be disqualified. See detailed rules here.
How do I ensure KYC compliance for the 200M Staking Program?
If you are a registered account in the 200M Staking program,, KYC can be completed through https://tsm.coinlist.co/algorand-foundation-staking-compliance/.
How do I link my address wallet for the 200M Staking Program with my KYC?
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/
Will the 200M Staking Program open back up?
No. It is fully subscribed.
If the EU adds crypto regulations before the end of the 200M Staking Program, could EU users be kicked out of the rest of the program?
There are no current regulations in the EU which would affect this. We will update the community in this eventuality.
Supply:
Does the Foundation own tokens?
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.
What is the current circulating supply and why do different sites list different amounts?
At block 7,475,068 (June 25th 2020), the circulating supply was 3,318,158,384 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.
What is the max supply cap for Algorand?
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.
Our grant programs are dedicated to open-source developers and community members to help incentivize protocol development and innovation. The Algos from these programs will be distributed via multiple options including hackathons, competitions, events, the Algorand Foundation 250M Algo Grants Program and other means.
There will be a maximum of 10 billion Algos in circulation. The Foundation anticipates that it will take at least five years of operation of the Algorand Public Blockchain to reach 10 billion Algos in circulation. The Algos will be introduced into the network over time as follows:
| Overall Algo Distribution (updated as of June 2020) | Supply |
|---|---|
| 1. Algo Sales to the Community (distributed over time) | 2.5 billion |
| 2. Incentives and Ecosystem Support (distributed over time) | 1.9 billion |
| 3. *Early Relay Node Runners Program (distributed over time) | 3.1 billion |
| 4. Algorand Inc | 2.0 billion |
| 5. Algorand Foundation (distributed over time) | 0.5 billion |
*Early Relay Node Runners Program is closed
Is there someplace where I can see a good description of how the initial Algo token distribution occurred, and how much stake the Algorand Foundation has in the network?
A good description is available on our Foundation Algo Dynamics page: https://algorand.foundation/algo-dynamics
How many Algos are going to be released in 2020? What is the supply schedule for this year and how are they distributed?
The Algorand Foundation’s sale target for 2020 is no more than 150 million Algos. The Foundation plans to use a mixture of mechanisms to sell Algos, ranging from public auctions using a listing partner to structured selling and private sales. The minimum token distributions for 2020 are: 200M for Participation Rewards, 100M out of the 200M Staking Program rewards, and 75M for node runner reward distributions. Our multi-year Grants program will also distribute Algos and supply is dependent on which grants are supported. Full transparency will be regularly provided to our community and check out https://algorand.foundation/algo-dynamics for further information. Algorand Inc will have specific details in relation to their supply on their transparency reports (https://www.algorand.com/transparency).
Is there a burning process for Algos?
The Algorand Foundation burnt the tokens from the initial auction that were refunded. For further information see:
June 19, 2019: https://algorandfoundation.cdn.prismic.io/algorandfoundation/5c80fdd2-fe08-4bda-8ac5-981b37908031_Early+Redemption+Confirmation.pdf
The link to second token burn event will be added in due course.
Running Nodes:
Are there rewards for running a relay node?
Currently, there are no additional rewards for running a relay node. The Algorand Foundation issued token grants to early supporters 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.
How much rewards are distributed to early supporters running relay nodes?
The vast majority of early supporters receive rewards according to the schedule in https://algorandfoundation.cdn.prismic.io/algorandfoundation/eb2a8c69-2262-42f8-99a4-09df485207b5_EIP-11252019AF_+Conditional+Accelerated+Vesting+Nov+30.pdf.
Who are running relay nodes?
Algorand Inc, Algorand Foundation, and early supporters (including Universities) are running relay nodes.
How many relay nodes are there?
As of June 2020, there are a bit more than 100 relay nodes.
Who manages the list of relay nodes? What about decentralization?
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.
Participation Nodes:
How do I run a participation node?
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/.
How many tokens do I need to run a participation node?
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.
Are there rewards for running a participation node?
Currently, there are no extra rewards for running a participation node.
Ambassador Program:
What is the Ambassador rewards program?
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://algorand.foundation/2020-ambassador-rewards-program.
How do I become an Ambassador?
For information on the Algorand Ambassador rewards program and how to apply to become and Ambassador go to https://algorand.foundation/2020-ambassador-rewards-program
Algorand Foundation Ecosystem Funding Mechanisms:
Does the Algorand Foundation have a grant program to fund projects on the Algorand blockchain?
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
Does the Algorand Foundation have an accelerator program for companies interested in building on Algorand?
The Algorand foundation in partnership with Borderless Capital & 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. Full program details are available at https://www.longhashventures.com/algorand/.
Miscellaneous:
Do sending and transacting with an Algorand Standard Asset (ASA) have higher fees than regular Algos?
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.
Which exchanges are trading Algo?
Exchanges include Binance, Coinbase, Huobi, OKEx, Bittrex, Kraken, Bitfinex. You can see a list of exchanges on our Algorand Ecosystem page.
If I bought tokens at auction and want a refund for 90% of my investment, how do I do that?
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
What is the Borderless Economy™?
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.