What is Frozen Balance in my OneKey App account?

Blockchains like Algorand, Solana, Near, and Ripple have a unique feature where users cannot spend their entire coin balance due to certain requirements. While this may seem restrictive at first glance, these protocols have specific reasons for implementing such measures.

In this article, we will explore the individual reasons behind each blockchain's approach and uncover the common reasoning that ties them together, providing a better understanding of this design choice and its implications for users.

Uncover Reasons

The common thread among these blockchains is the need to balance user freedom with network health and security. By requiring users to lock up a portion of their funds, these networks can deter spam and malicious activities, ensure efficient resource allocation, and maintain high performance. This approach, however, means that users need to be aware of these requirements to manage their balances effectively.

Algorand

On Algorand, accounts must maintain a minimum balance to exist on the blockchain. This requirement is in place to prevent spam and ensure that the network remains efficient. The minimum balance is calculated based on the account's size, which increases with more Algorand Standard Assets (ASAs) or smart contracts that the account opts into or creates. This means that a portion of the balance is always "locked" to meet this requirement.

Near
Near Protocol has a concept of storage staking (sometimes referred to as "rent"). Users need to stake a certain amount of $NEAR to cover the storage space their account and smart contracts use on the blockchain. This ensures that the network resources are efficiently allocated and prevents spamming. The staked $NEAR for storage is not spendable unless the data taking up space is deleted or the account is removed.
Solana
Solana introduces a novel concept called "rent." To keep an account on Solana, it must hold enough $SOL to cover rent fees. This is because Solana aims to maintain a high-performance and efficient state by incentivizing users to clean up unused accounts. Accounts can be made rent-exempt by depositing a larger amount of $SOL, which essentially locks up part of the balance to ensure the account remains active without incurring ongoing rent charges.
Ripple (XRP Ledger)
The XRP Ledger requires a minimum reserve of $XRP to create and maintain an account. This reserve requirement is designed to deter spam and malicious activity by making it costly to create a large number of accounts or transactions. The minimum reserve can change based on network governance decisions but acts as a "locked" balance that users cannot spend unless they delete their account (which is not a common practice).
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