Algorand provides users with at least 1 ALGO?

General
1

To be honest, I have never heard of Algorand before I received a mailing from Kraken yesterday, in which the following two paragraphs caught my eye:

  • By owning 1 ALGO, users are able to participate in functions essential to Algorand’s operation, including validating transactions and adding new blocks to its blockchain.
  • Algorand provides users with at least 1 ALGO (in a wallet they control), a share of the cryptocurrency it creates programmatically each time a block is added to its blockchain. Note: For the time being, you will not receive these rewards for the ALGO you keep directly on Kraken.

Can someone please explain these two points to me?
How / when does Algorand provide users with at least 1 ALGO?

I have already created an Algorand Web Wallet, so where to go from there?
Should I purchase some ALGO at Kraken or register at https://auctions.algorand.foundation?

2
Algorand provides users with at least 1 ALGO (in a wallet they control)...
with the possibility to get rewards. (THAT is the missing part of the above sentence). For the reqrd scheme, see e.g. https://www.purestake.com/blog/algorand-rewards-distribution-explained/
3

I have just read through that page, but it’s still not quite clear. I’m not sure what PureStake exactly does or what they mean with “PureStake automatically compounds all customer accounts that are staking with us” because I could not find any info about staking ALGOs on their website.

So lets say I want to hold 10000 ALGO in an Algorand Web Wallet, I have to send two zero Algo payment transaction per day to myself to make full use of the outlined rewards schema?

Do I need to send such zero Algo payment transactions from one address to another, or can you send from and to the same address?

4

Yes, you need to send these zero Algo txn, if you want to increase the reward by another 2 percent.

You can send the 0 Algo to yourself. But you can be altruistic, e.g. send 0 Algo to another address. In that case, both you and the other address gets the reward added to the current Algo value.

5

I managed to reproduce the calculations on that page, with the result that for holding 10000 ALGO it’s actually only one transaction per day leading to the highest net rewards. :nerd_face:

Since I only have just starting reading up on Algorand, is running a node rewarded as well?

6

Early nodes got rewards. I am also interested: if I start a node with 99.99 % uptime, do I get a reward?

7

At this time, running a node does not get you any rewards. Some early backers might have had other terms, but the protocol per-se does not grant these any rewards.

8

Thought so, but what’s the incentive to run a node then? After all such is eating & costing quite some resources.

9

Continuesly running a node allow you to observe the chain being built, as well as to verify that the time delta between consecutive blocks rughly aligns with the timestamp in the block header.
Beside that, there are no true benefits. Keep in mind the algorand foundation are keeping suffient amount of stake, so that the “absense” of your voting wont be an issue.

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