> For the complete documentation index, see [llms.txt](https://docs.stakingrewards.com/staking-data/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stakingrewards.com/staking-data/methodologies/algorand-srb.md).

# Algorand SRB

Learn how Algorand staking rewards are calculated. ALGOSRB formula covers block rewards, Foundation bonus decay, transaction fees, and eligible stake.

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 reward-eligible stake (online accounts holding between 30,000 and 70 million ALGO that registered as incentive-eligible by paying the 2 ALGO participation fee).

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

<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>Derived from the observed block time: approximately 11,460,000 blocks/year at ~2.75 seconds per block (365 days × 86,400 seconds ÷ average block time).</td></tr><tr><td>es</td><td>Reward-Eligible Stake</td><td>Total online stake from incentive-eligible accounts: accounts that went online with a key registration paying at least the 2 ALGO incentive-eligibility fee, and whose balance is at least 30,000 ALGO and at most 70,000,000 ALGO. Accounts outside this range, or that registered without the fee, still participate in consensus but receive no proposer payouts.</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><tr><td>Average Staking Fee</td><td>0 — Algorand native consensus has no protocol commission. RETI pool operator fees are reflected in each pool's net reward rate.</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 10/06/2026
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