1. What is Algorand Staking?

Algorand staking allows ALGO holders to earn rewards by participating in the network's consensus mechanism. Unlike traditional proof-of-stake, Algorand's Pure Proof-of-Stake (PPoS) allows all ALGO holders to earn rewards automatically without locking funds.

2. How Does the Calculator Work?

The calculator uses the staking rewards formula:

Where:

• \( R \) — Rewards earned (ALGO)
• \( A \) — Amount staked (ALGO)
• \( APR \) — Annual Percentage Rate (%)
• \( D \) — Duration (days)

Explanation: The formula calculates daily rewards based on the APR and then multiplies by the number of days staked.

3. Importance of Staking Rewards Calculation

Details: Calculating potential staking rewards helps investors make informed decisions about participating in the Algorand network and estimating potential returns.

4. Using the Calculator

Tips: Enter the amount of ALGO you hold, the current APR (available from Algorand's official sources), and the duration in days you plan to stake. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Do I need to lock my ALGO to earn rewards?
A: No, Algorand's PPoS doesn't require locking - you earn rewards just by holding ALGO in a non-custodial wallet.

Q2: How often are rewards distributed?
A: Rewards are calculated continuously and distributed when you complete a transaction (sending/receiving ALGO).

Q3: Does the APR change?
A: Yes, the APR can fluctuate based on network participation and governance decisions.

Q4: Are rewards compounded automatically?
A: No, rewards must be claimed (via transaction) to be added to your staked balance.

Q5: Is there a minimum amount to stake?
A: No minimum - you earn rewards on any amount of ALGO in your wallet.