Enabling Limited Key Rotation for the 200M ALGO Staking Rewards Program

The Foundation has recently received requests to enable key rotation for registered addresses in the 200M ALGO Staking Rewards program. While key rotation provides security benefits in some settings, it can introduce operational complexity and potential errors.  Having considered the trade offs, the Foundation has decided to provide a limited rotation window during which participants in the 200M staking program can replace their current registered wallet addresses. The rotation program is open to all participants, however, it is completely optional. Participants can either choose to replace their address OR stay with their current registered addresses.

The rotation window will be open between rounds 5800000 and 6400000, corresponding roughly to the month of April 2020. During this time, a registered address X can be replaced by a new address Y by posting to the blockchain a "close" transaction from X to Y. In more detail the posted transaction must:

  • Have the original registered address X in the "Sender" field, and the new address Y in the "CloseRemainderTo" field;
  • If the "Receiver" field of the transaction is different from the "CloseRemainderTo" field, then the “Amount” field should either be left empty, or specify an amount of less than 1 Algo (1000000 microalgo). If the "Receiver" and "CloseRemainderTo" fields  are identical, then the "Amount" field is allowed to be anything;
  • The transaction must be posted to the blockchain between round 5800000 and round 6400000.

Each participating address X can only perform a single key rotation (e.g. from X to Y). Further rotation (e.g. Y to Z) is not allowed and will result in disqualification, even if done during the same rotation window.

Key rotation does not change the minimum balance requirement, the new address Y will be subject to the same minimum balance requirement as did the original address X. As before, if the balance in the new address Y ever dips below the required minimum balance, it will result in disqualification from the program.

KYC/AML update procedure after key rotation

A participant who chooses to rotate their registered address, can only rotate it to a new address that they own. Rotating to an address that belongs to another party is explicitly prohibited and will result in disqualification. For a participant who completed KYC/AML, we will follow up with them to verify that they are indeed the owners of the new registered addresses.

If you have any questions related to this rotation window, please contact us at [email protected]