Algorand (ALGO) FAQs
ALGO staking rewards have been phased out as of 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?
What is Algorand?
Please note: As ALGO staking rewards have been phased out as of April 2022, the section in the above video that touches ALGO rewards is no longer applicable. To earn a reward with your ALGO, please see our article How do I earn Algorand (ALGO) rewards with Algorand's new governance model?
Why was Algorand's previous staking program phased out?
You may have noticed that Algorand's staking rewards program has been phased out and ended in mid-April 2022. A wallet cannot earn Algorand rewards anymore simply by holding ALGO in the wallet.
ALGO staking was replaced by Algorand's new Governance Rewards program. 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?
Algorand is a special asset that has built-in rules on minimum balances held in Algorand addresses, just like some bank accounts where you have to maintain a minimum balance. In order to activate and use your Algorand wallet, you must first deposit no less than 0.1 ALGO into your Exodus Algorand wallet.
After that, your account will activate and everything will be just like you are used to with Bitcoin, Ethereum, or any other Exodus asset, except that the 0.1 ALGO minimum cannot be moved out.
Algorand official stance
The ALGO asset is unique in that, unlike other assets, Algorand enforces reserve requirements in order to keep the address active as well as protect the shared global ledger from growing excessively large as the result of spam or malicious usage.
To submit transactions, an address must hold a minimum amount of ALGO in the shared global ledger. You cannot send this ALGO to other addresses. To fund a new address, you must send enough ALGO to meet the reserve requirement.
The current minimum reserve requirement is 0.1 ALGO. This is the cost of an address that owns no other objects in the ledger.
You can read more information on the Algorand reserve requirements in the official documentation.
How Exodus handles ALGO minimum balances
Similar to how Exodus requires a minimum Ethereum balance to exchange ERC20 tokens, or a minimum balance for XRP, Exodus also requires a small amount of ALGO to be stored in your wallet to remain in compliance with the Algorand enforced reserve requirements.
By default, a minimum balance of 0.1 ALGO is required, however for each Algorand Standard Asset (ASA) token (e.g. EXIT token) you opt-in to receive, the minimum balance will increase by 0.1 ALGO per token.
So, for example, if you have both ALGO and EXIT, your minimum ALGO balance will be 0.2 ALGO.
If your ALGO address in Exodus has less than this minimum balance, clicking on the Receive tab will display a modal (popup) with this warning to alert you of the situation.
Please note: You will not be able to send ALGO while the balance in your Exodus wallet remains below 0.1 ALGO.
When exchanging other assets for ALGO using the Exodus in-app exchange feature, Exodus will always make sure that you will receive more than 0.1 ALGO to ensure these account minimums are covered.