# Algorand SRB

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 Profile](https://www.stakingrewards.com/asset/algorand) and [Data API](https://www.stakingrewards.com/data-api).

> **TL;DR:** Algorand staking rewards come from block production, combining a decaying Foundation bonus (starting at 10 ALGO/block) plus 50% of transaction fees. The reward rate equals annual block rewards divided by total eligible stake (accounts with 30,000+ ALGO).

$$
ALGOSRB = (br \* bpy) / es
$$

<table data-full-width="false"><thead><tr><th width="141">Formula key</th><th width="158">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>br</td><td>Block Reward</td><td>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.</td></tr><tr><td>bpy</td><td>Blocks Per Year</td><td>Approximately 11,250,000 blocks/year based on ~2.8 second block time.</td></tr><tr><td>es</td><td>Eligible Stake</td><td>Total online stake from accounts with at least 30,000 ALGO eligible for consensus participation.</td></tr></tbody></table>

* 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.

$$
ALGOSRB(v) = ALGOSRB \* p
$$

<table data-full-width="false"><thead><tr><th width="150.33333333333331">Formula key</th><th width="187">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>p</td><td>Performance</td><td>The validator's voting performance ratio, reflecting their participation in consensus.</td></tr></tbody></table>

#### 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:

$$
ALGOSRB\_{reti}(v) = ppy \* ((1 + poolApy)^{1/ppy} - 1)
$$

<table data-full-width="false"><thead><tr><th width="141">Formula key</th><th width="158">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>poolApy</td><td>Pool APY</td><td>The per-pool APY from the RETI pool endpoint.</td></tr><tr><td>ppy</td><td>Periods Per Year</td><td>Calculated as 365 * 24 * 60 * 60 / blockTime.</td></tr></tbody></table>

***

#### 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 API](https://www.stakingrewards.com/data-api).

#### 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.

$$
ALGOSRB^R = 1+ALGOSRB /(1+i)-1
$$

<table data-full-width="false"><thead><tr><th width="150.33333333333331">Formula key</th><th width="265">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>i</td><td>Inflation Rate</td><td>Derived from the annualized variation in circulating supply using historical GlobalAPI data.</td></tr></tbody></table>

#### 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:

<table data-full-width="false"><thead><tr><th width="212.99999999999994">Metric</th><th>Description</th></tr></thead><tbody><tr><td>Staked Tokens</td><td>Total online stake from all participating accounts.</td></tr><tr><td>Staking Wallets</td><td>Total number of staking accounts on-chain.</td></tr><tr><td>Rewards per Year</td><td>The annualized rewards in USD.</td></tr></tbody></table>

***

#### 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:

* [Algorand Developer Docs](https://developer.algorand.org/)

***

:books: [Learn more about ALGO Staking](https://www.stakingrewards.com/asset/algorand)

:bar\_chart: [Calculate your ALGO Staking Rewards](https://www.stakingrewards.com/calculator?asset=algorand)

:gear: [Access historic ALGO Staking Data via API](https://www.stakingrewards.com/data-api)

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Last updated on 03/04/2026
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