Rewards Algorithm

So, as I understand it, rewards accrue daily at a 6.00% APY rate on the principal balance in the account. However, rewards are not added to the account until it receives or sends an Algo. Once rewards are added, does the principal balance accruing 6.00% APY change? If so, this would suggest returns could be much higher than 6.00% because the rewards would compound daily as opposed to annually. Does anyone know where the source code is for the rewards algorithm on GitHub? Thanks!

Yes, if you make daily transactions, rewards compound daily.


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Thanks! This is very helpful. Do you know where I can find the source code that sets the rewards rate? Someone on Discord suggested this script on GitHub. But, I could not find numeric values for rewardslevel or rewardsbase. I want to locate the script that is used to calculate rewards on GitHub.


I made a repo on GitHub to preserve some scripts relevant to the reward calculation. (LINK)


Some thoughts on my research and review of the articles @fabrice linked.

I am still lacking in information and knowledge to validate the reward methodology. There are definitely people who have this down to a science, but I’ve read several different sources on the subject reporting different results and information. There does not seem to be a standard or identifiable APY in the source code. Instead, it appears to be a kluge of background mechanics based on blockchain data. In terms of the APYs reported, the range is from 4.00% to 19.15%. There are many suggested descriptions, calculators, and optimizers, but there is no way to assure accuracy without validating the numbers against the source code.