Rewards - An FAQ for Users

This post is intended to help answer common questions about rewards from Algorand users. The following sources of data were used to create this post

Do I need to run a node to earn rewards?

  • No. All token holders who are correctly marked online or offline in Algorand earn rewards. Users who are buying tokens are marked offline by default and can mark themselves online if they so choose by running a node and going online with their participation key.

Does every address receive rewards?

  • Yes. Every address that has 1 Algo or more earns rewards as soon as any block is added to the chain, whether you are online or offline. See "Algorand Rewards - A Technical Overview" for further information on how rewards are calculated.

Do I need to keep my Algos in a particular wallet to earn rewards?

  • No.  Holding your tokens in any non-custodial wallet will ensure that you are earning your rewards.  This could be Algorand’s mobile wallet, our named partners, or any other non-custodial wallet that supports Algorand.

If I keep my Algos in a custodial account, such as an exchange, will I still earn awards?

  • Maybe. Technically, the custodian is earning the rewards because the custodian owns the address the Algos are in. Each custodian will make their own decision on what they do with the rewards they are earning on your tokens.  Be sure to ask what their policy is before depositing your Algos or you may risk not earning any rewards.

How many rewards will I earn?

  • Given the protocol’s rewards implementation the Algorand Foundation’s token dynamics information, at the current rate, a user with 100 Algos would earn around 10 Algos in rewards after one year.  Keep in mind that that would change if the user were transacting their Algos and changing their balance.

How frequently will I see rewards added to my account?

  • This is a function of the total amount of Algos in the system, please see this blog for the technical overview.  The rough frequency as of 6/24/19 would be about every 20 minutes.

How can I check the Algorand blockchain to see if I have earned rewards?

  • If you are holding your Algos in a non-custodial wallet, your balance should reflect the rewards.
  • If you are holding you Algos in a custodial wallet, such as an exchange, who has a policy to pass rewards on to you, make sure you understand the method they use to pass on the reward and ensure that it is occurring.
  • If you are holding your Algos in a custodial wallet, such as an exchange, who does not have a policy to pass rewards on to you, you should not expect to see rewards added to your account.
  • Please see this blog for a technical overview of rewards and how to use our tools to compute the rewards directly from the Algorand blockchain.

Can I earn tokens for running a relay node?

  • Not at this time, but there will be opportunities to earn tokens for relay node running in the future. While anyone can run a relay node, the Algorand Foundation has given early supporters around the world who agreed to run relay nodes at network launch the opportunity to earn Algos in exchange. This early support program is closed, but there will be more opportunities in the future.