🎲Algorand SRB

Algorand Staking Rewards Rate (ALGOSRB™) Methodology

ALGOSRB is a benchmark representing the annualized participation reward rate for the ALGO token.

ALGOSRB is calculated and published by Staking Rewards via the Algorand Profilearrow-up-right and Data APIarrow-up-right.

ALGOSRB=(brbpy)/esALGOSRB = (br * bpy) / es
Formula key
Metric name
Description

br

Block Reward

The average reward per block, consisting of a Foundation bonus (starting at 10 ALGO/block, decaying by 1% every 1,000,000 blocks) plus 50% of the block's transaction fees.

bpy

Blocks Per Year

Approximately 11,250,000 blocks/year based on ~2.8 second block time.

es

Eligible Stake

Total online stake from accounts with at least 30,000 ALGO eligible for consensus participation.

  • ALGOSRB reflects the reward rate for native consensus participation (block production).

  • The rate is empirically measured from observed block payouts and annualized, since both the decaying Foundation bonus and variable transaction fees change every block.

  • ALGOSRB is non-compounded, excluding returns from reinvestment of rewards.


ALGO Validator Staking Reward Rate: ALGOSRB(v)

Algorand does not have a traditional commission model. Native validators earn rewards based on their consensus performance.

ALGOSRB(v)=ALGOSRBpALGOSRB(v) = ALGOSRB * p
Formula key
Metric name
Description

p

Performance

The validator's voting performance ratio, reflecting their participation in consensus.

RETI Staking Pools

In addition to native validators, Algorand supports RETI smart contract staking pools. These pools have a separate reward rate derived from an APY-to-APR conversion:

ALGOSRBreti(v)=ppy((1+poolApy)1/ppy1)ALGOSRB_{reti}(v) = ppy * ((1 + poolApy)^{1/ppy} - 1)
Formula key
Metric name
Description

poolApy

Pool APY

The per-pool APY from the RETI pool endpoint.

ppy

Periods Per Year

Calculated as 365 * 24 * 60 * 60 / blockTime.


Observation Period:

  1. The ALGOSRB is determined based on the real-time participation data at the point of evaluation.

  2. This data is then annualized for a comprehensive year-long projection.

Calculation

The calculation happens every 2 hours and is immediately published via Data APIarrow-up-right.

Limitations

  1. ALGOSRB employs a 365-day convention for annualizing staking rates. This convention remains consistent and does not accommodate adjustments for leap years.


ALGO Real Reward Rate (ALGOSRB^R)

The real reward rate calculates the ALGOSRB adjusted for inflation in the network.

ALGOSRBR=1+ALGOSRB/(1+i)1ALGOSRB^R = 1+ALGOSRB /(1+i)-1
Formula key
Metric name
Description

i

Inflation Rate

Derived from the annualized variation in circulating supply using historical GlobalAPI data.

Inflation Rate Behaviour

The inflation rate of Algorand is derived from the year-over-year change in circulating supply, reflecting actual token distribution dynamics rather than a fixed tokenomics schedule.


Other ALGO metrics calculated by Staking Rewards:

Metric
Description

Staked Tokens

Total online stake from all participating accounts.

Staking Wallets

Total number of staking accounts on-chain.

Rewards per Year

The annualized rewards in USD.


Data Sources:

  • Algorand participation and consensus APIs for reward rate, block time, and validator performance

  • Algorand RETI pool contracts for staking pool APY data

  • CoinGecko for price and supply data


References:


📚 Learn more about ALGO Stakingarrow-up-right

📊 Calculate your ALGO Staking Rewardsarrow-up-right

⚙️ Access historic ALGO Staking Data via APIarrow-up-right

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