200 Million Algo Staking Rewards Program

As an incentive to support the ongoing growth of the Algorand network and ecosystem, the Algorand Foundation has announced a staking rewards program to reward those who share its vision for long-term success of the Algorand network and its technology.

The foundation will award 200 million Algos to participants who opt in by registering their wallet. The staking rewards will be distributed over the course of four 6-month periods, a total of two years, to qualifying participants who commit by registering their wallet before a specific block that is estimated to happen before 11:59pm SGT on August 31st, 2019.

How to Qualify:

  1. Place a minimum of 25 Algos into an Algo wallet.
  2. Register your Algo wallet (via a micro transaction of 0.000001) by block number 1618450 (which is expected to happen around August 31st, 2019). Only the first 200 million Algos across the registered wallets will be eligible. Note: We established an alternative process to register addresses that are technically unable to send transactions to the network because they are held in cold storage. This is described below.
  3. For the duration of the program, maintain the minimum wallet balance at all times. The minimum balance will be computed as follows:
  • From program start until the end of the first period the minimum balance is the original wallet balance (as captured by snapshot at the time of program start). 
  • After staking rewards are distributed for any period the minimum balance will become the original wallet balance + staking reward from all prior periods.
  • Qualifying wallet balances will be monitored and if the result of any transaction drops the balance below the minimum balance, that wallet will be immediately disqualified. 
  • Algos can be added to the participating wallet at any time. However, only the balance at the time of the snapshot is eligible for the reward (new Algos added will not increase the amount of reward available to that wallet), and in the event that at any time in a given period the wallet goes below the minimum balance of that period, the wallet will be immediately disqualified.

  

Note: Algorand Inc. and the Algorand Foundation cannot qualify for this program.

The Algorand Foundation retains the right to require KYC qualification as a condition of participation, and also reserve the right not to distribute awards to participants residing in United States of America and its territories, Canada, Democratic People's Republic of Korea, Cuba, Syria, Iran, Sudan, Republic of Crimea, People's Republic of China, or jurisdictions in which the auctions and/or trading of the tokens themselves are prohibited, restricted or unauthorized in any form or manner whether in full or in part under the laws, regulatory requirements or rules in such jurisdiction (the “Excluded Jurisdictions”).

Algo Reward Distribution Details

The 200 million Algos in the reward pool will be distributed over the course of four 6-month periods for a total of two years on the dates below:

The entire staking reward pool is fixed and will be distributed on a stake-weighted basis only to remaining qualifying participants at the end of each 6-month period.  As participants become disqualified (ie, drop the balance of their wallet), the staking reward Algos which the disqualified users would have received remain in the staking reward pool and are distributed to the remaining eligible users (i.e., each qualifying wallet that remains receives a larger distribution).

For any Algo belonging to a qualifying wallet, the staking reward is calculated by the staking reward Algos for that period (50,000,000) divided by the total number of Algos across all qualifying wallets. The foundation will publish the Algorand Staking Reward Ranking which will list eligible addresses alongside their balance and potential staking reward Algos they stand to receive.

The pool of 200 million reward Algos will not increase the total Algo supply, since it comes from the pool that had been assigned to auctions, which are suspended for this quarter. Algorand Foundation reserves the right to KYC prior to the distribution of reward Algos, and further reserves the right not to include participants from the Excluded Jurisdictions.

Next Steps:

  • Place a minimum of 25 Algos in your Algo wallet.
  • Register your wallet by submitting a micro transaction of 0.000001 of Algo to address:  ZGP25YTZL3NF43SQZREMH5BRBTJEXHWPL6TSQDCGJWPEN4XJTIHVOZSOLA no later than block number 1618450, which is expected to happen between August 31 and September 1, 2019.  If the address that you register cannot submit a transaction because it is being held in cold storage, you may substitute this step by the process described below in “alternative process for cold storage addresses.”
  • Please note that only the first 200 million Algos in the registered wallets qualify, guaranteeing a minimum of 2X reward for participants.
  • Maintain the balance of the qualifying wallet, as noted above.

If you have additional questions or issues on the staking rewards program, please email [email protected]

Continued Momentum Towards Economic Equilibrium 

The foundation wants to share this staking rewards program with the entire community as an important step to encourage participation and support to the growth of Algorand. More steps will be taken in our long term plan to address supply. We will be sharing those with the community in the near future. 

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FAQs

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 in Binance.  Will I qualify for the staking program? Or do I need to download a Algo wallet? 

We would hope that all exchanges who register for this program would share the rewards with their users.  We recommend asking the particular exchange where you are holding your Algos. If they will be participating, maintaining the minimal amount, and passing the full reward onto their users.   You can remove this uncertainty by using the Algorand Wallet.

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.

Alternative process for cold storage addresses

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:

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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>

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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>”.