What is the 5% Active User Reward?
Any Komodo wallet address holding an unspent transaction output (UTXO) over 10 KMD will begin earning a 5% APR reward once the lock time is set (around 1 hour after a transaction where funds are deposited into your wallet).
This reward does not apply to funds kept on exchanges where you do not own the private key! That means that if you want to claim your 5% reward you should transfer your KMD from an exchange wallet to your personal wallet.
This is similar to how Proof of Stake (PoS) mints new tokens, but you don't have to be online or run a full node (native mode) to receive the reward. Komodo's PoS is effectively a hybrid zero footprint PoS accruing rewards based on uxtos and nlocktime. Click here for more detailed technical information.
In simpler terms, essentially the calculation of rewards depends on an optional transaction parameter called `nLockTime`. Most wallets do not set this parameter. Agama does, and thanks to the work of Luke Childs, a Ledger device running the latest firmware does also. Generally, transactions from an exchange do not set nLockTime, so if you received funds from an exchange, with nLockTime not set, awards will not accrue. To overcome this, the easiest method is to send the funds to yourself from within Agama. When we say "send the funds to yourself", it means from your address in Agama, to that same address.
The rewards will stop accruing 1 month after a transaction to reward active users, so claiming your reward at least once a month is recommended.
How much is my reward?
You can check your pending rewards balance at the following websites
A useful rewards calculator is also available at https://www.atomicexplorer.com/#/rewards-calc
How do I claim the 5% Active User Reward?
- You need to have minimum 10 Komodo in your address as a single UTXO that is about 60 minutes (~60 blocks) old.
- If you have multiple UTXOs less tha 10 KMD each, your address will not accrue rewards. To consolidate funds, you can send all funds to your own address (self-send), or use the Merge UTXOs tool.
- Verify that LockTime for that transaction is set. You can verify this by searching with the txid in explorer https://kmdexplorer.io.
- Confirm the LockTime value is set as a unix timestamp (i.e. 1545050262). You can translate the timestamp to local time using EpochConverter.
NOTE: Not all 3rd party wallets set locktime, and as a result you may not accrue rewards using them. If in doubt, use Agama and send your balance to yourself to set the LockTime.
- Pending rewards can be claimed in Agama using the button shown in the image below. The claim button will indicate the pending reward value.
- If no rewards are yet available, the button will allow you to Check your UTXOs to see if you need to consolidate funds.
- If using Native Mode select a destination address you have for your funds to be sent to, and the click the Claim Rewards button. Make sure you have securely stored a back up of the private key to this address!
- It is recommend to use Agama Lite mode for claiming rewards as it sends existing funds and rewards to same address.
- Once the reward claim transaction has been sent, you'll see a message in the bottom right corner of Agama.
Which wallets I can use?
Always make sure to use latest release wallet. Please don't use old versions, as they may not work and could be lacking the latest features.
- Agama Desktop & Mobile (download link)
- Komodo CLI binaries (download link)
- KomodoOceanQT wallet (download link)
- Agama Web Wallet (don't use large amount of funds and make sure to read the warnings before using)
WARNING: If you store funds on an exchange and you don't control your private keys you CANNOT claim reward. Third party wallets may also not support reward payment, check by sending your funds to yourself to confirm (this should trigger a reward payout event).
The video guide below conveniently demonstrates the steps explained above.
Additional guides are available at the links below
- Ledger device (hardware wallet) - https://support.komodoplatform.com/en/support/solutions/articles/29000024442-komodo-5-active-user-reward-on-ledger-hardware-wallets
- 3rd party hardware or software wallets may not support the Komodo 5% Active User Reward. If in doubt, use Agama.
- New KMD coins are rewarded to users when they make transactions. This includes either sending funds to others, or yourself.
- Rewards stop accruing after one month (unless a transaction is made).
- Total rate is ~5.1% per year if done monthly or more often
- Using Agama Lite Mode (SPV) or Agama Mobile are the simplest and safest way to claim rewards.
- Using Agama Native Mode may send funds to a change address - make sure to backup your private keys afterwards.