Algorand FAQs - Learn more about ALGO
ALGO staking rewards ended in April 2022. However, you can earn up to 10.02% on your ALGO by participating in Algorand's new Governance Rewards program!
You can read about how to participate from your Exodus wallet here: How do I earn Algorand (ALGO) rewards with Algorand's new governance model?
In this article:
- What is Algorand?
- Why was Algorand's previous staking program phased out?
- Why does Algorand have a minimum balance?
- Algorand Standard Assets
What is Algorand?
Since ALGO staking rewards have been phased out as of April 2022, the section in the video that mentions ALGO rewards is no longer applicable. To earn rewards with your ALGO, please see our Knowledge Base article: How do I earn Algorand (ALGO) rewards with Algorand's new governance model?
Why was Algorand's previous staking program phased out?
Algorand's passive staking rewards program ended in April 2022, so you can't earn ALGO rewards just holding ALGO in your wallet anymore.
The good news is that it was replaced by Algorand's new Governance Rewards program, which offers even higher rewards.
If you're interested, you can read about how to participate from your Exodus wallet here: How do I earn Algorand (ALGO) rewards with Algorand's new governance model?
Why does Algorand have a minimum balance?
The Algorand network has a rule for the minimum amount of ALGO that needs to be kept in an Algorand address, just like some bank accounts where you need to maintain a minimum balance.
To use your Algorand wallet, you need to deposit at least 0.1 ALGO.
For every Algorand (ASA) token held in the address, the minimum balance increases by 0.1 ALGO.
The minimum balance required by the Algorand network can't be moved out from the address.
Algorand's official stance
The Algorand network requires minimum balances to prevent spam transactions and accounts from overwhelming the network.
An address must hold a minimum amount of ALGO to send an ALGO transaction. You cannot send this ALGO to another address. To fund a new address, you must send enough ALGO to meet the reserve requirement.
The minimum balance for an Algorand address varies depending on how many Algorand (ASA) tokens the address holds. If an address only has Algorand (ALGO), the minimum is 0.1 ALGO. The required minimum balance increases by 0.1 ALGO for each ASA token held by the address.
For more information, visit: Algorand reserve requirements in the official documentation.
How Exodus handles ALGO minimum balances
In Exodus, you will need to maintain the minimum balance required by the Algorand network. If your Algorand balance is less than the required minimum balance, you will not be able to send Algorand and Algorand (ASA) tokens.
The minimum balance for an Algorand address varies depending on how many Algorand (ASA) tokens the address holds.
By default, the required Algorand minimum balance is 0.1 ALGO. If you only hold Algorand and no ASA tokens, the minimum balance is 0.1 ALGO. The minimum balance requirement increases by 0.1 ALGO for each ASA token (e.g. EXIT, USDC or USDT) your address holds.
For example, If you have both ALGO and EXIT, your minimum ALGO balance will be 0.2 ALGO. If you have ALGO, EXIT, and ALGO-USDT, the minimum balance required would be 0.3 ALGO, and so on.
In Exodus, if you try to receive Algorand or ASA tokens when your balance is below the minimum requirement, then Exodus will display a popup to alert you of the situation.
You will not be able to send ALGO or ASA tokens if the balance in your Exodus wallet is below the minimum balance.
When exchanging other assets for ALGO using the Exodus in-app exchange feature, Exodus will always ensure that you will receive more than 0.1 ALGO to cover these account minimums.
What is an Algorand token?
Similar to how Ethereum has ERC20 tokens, Algorand has its own tokens. Algorand tokens are built on the Algorand Standard Assets (ASA) protocol and work in the same way that ERC20 tokens work on Ethereum.
ASA tokens run on the Algorand network, and take advantage of the high speed, high security, and low transaction cost of the Algorand blockchain.
The Algorand blockchain requires every ALGO address to have a minimum balance of 0.1 ALGO. For every ASA token you add to your wallet, your minimum ALGO balance increases by 0.1 ALGO. So, for example, if you have ALGO plus 2 ASA tokens in your wallet, your minimum balance will be 0.3 ALGO.
Which Algorand tokens does Exodus support?
Currently, Exodus supports the following Algorand tokens:
|Exodus Shares (EXIT)||ASA token||Send, receive|
|Tether USD (USDT)|| ASA token
|USD Coin (USDC)|| ASA token
If you want to interact with Algorand (ASA) tokens that are not on this list, you can now add these as custom tokens!
All ASA token transactions require Algorand to pay transaction fees.
What happens if I send an unsupported Algorand token to my Exodus Algorand address?
Algorand has an opt-in feature that makes it impossible to accidentally send an unsupported token to your Exodus Algorand address. If you try to send an Algorand token to an address that has not opted in to receive it, it will not send it. Instead, your token will remain in the sending wallet as if the transaction never happened.