<p>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.</p>

CC BY-SA 4.0
2021-05-10T19:12:04.833Z
By 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.
Andrew Westberg - BCSH
CC BY-SA 4.0
2021-05-10T16:26:27.017Z
2021-05-11T14:56:22.763Z
2021-05-11T14:56:22.763Z
nalyd88
<p>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?</p>

<daedalus>
When do rewards transfer to a wallet in Daedalus?
# When do rewards transfer to a wallet in Daedalus?

(Asked by: username_0 on 2021-05-09)

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?

**Tags:** daedalus

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## 1 answers

### Answer by username_1 on 2021-05-10. Score: 13 | Accepted 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.

> **Comments:**
> **username_2**: By 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.  

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