Under rewards one can view your returns for particular wallets. Is this already reflected in the wallet total as utxo? Are any actions required to have the rewards transferred to a given wallet?
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1 Answer
The rewards are automatically deposited by the protocol in the stake (rewards) address associated with the wallet. They are included in your wallet total balance. In order to spend these funds, they must be moved to a spending address within the wallet (become an UTxO) which costs a transaction fee. Daedalus automatically does this for you the next time you send ADA out of the wallet (combining transaction fees). There is not really a need to move the funds from your rewards account to your spending account unless you need to spend them. They earn compound rewards whether they sit in your rewards account or spending account.
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7By doing it this way, Cardano saves space on the blockchain. Otherwise, after every epoch, there would be a ton of new UTXOs generated on the blockchain to hold rewards. They don't become UTXOs until they are moved out like @nalyd88 said. May 10, 2021 at 19:12