We are pleased to announce that the SUGAR Stake Pool has been selected to be a part of the IOG delegation strategy. We believe it means more than just a delegation. We are very grateful and even more excited about it.
We welcomed a dolphin this morning. Image adjusted.
Charles congratulated us on the video. I am really happy that he mentioned my pool although it was just a moment. (around 1:52)
The following is a brief summary. We have taken care not to bend the content, but we hope you will refer to the official website as well.
Stake pool operation is not a simple process like mining, where you simply set up a server to generate blocks. It is not an easy process, and it does not mean that you can just buy good equipment and be successful. It also requires skill, persistence, and luck.
In a pool of thousands, marketing is the key to differentiation, make your own announcements, tell your own story, and build trust to be recognized.
This stage was announced at the beginning of April. A significant problem small stake pools are facing is the lack of assurance that they will receive stable rewards. IOG’s delegation is to support their mission to attract delegators to have predictable rewards.
PoolTool and Adapools were also utilized for this selection, and 700 of pools were assessed. The main considerations for the selection were as follows:
– Geographic location of the servers for fault tolerance.
– Despite the social/community activity of the stake pools, they struggle to get a strong position in terms of reward prediction.
– Potentially strong pool of low to medium size, striving to maintain network activity and support block production and transaction validation.
IOG supports these pools with a 3-month delegation so that the delegators can get more stable rewards.
Due to the security properties of the Ouroboros protocol, the process of selecting block generation is ultimately randomized, with the probability of block generation being proportional to the amount of stakes delegated. These conditions are good for long-term reward behavior, but for shorter time spans (one to several epochs), this randomness can result in unpredictable amounts of reward. The effect is greater to smaller amount of delegation in the pool, which can have the undesirable side effect of confusing the delegator who is expecting a predictable return.
The next call for applications will be in June for the third quarter.