Epoch 269: Cardano360

2021-09-30

Why is the reward so low?

I received a DM from a delegator asking, “My reward is lower than usual, is this possible?" My apology for making worry.

Blocks are assigned to each pool every epoch. The reward is based on the number of blocks successfully minted out of those assigned, and the amount of stake. As you can see below, only one block was assigned and so the reward was small. This is due to the random factor.

However, considering the pool size, the number of assignment was poor. It is natural for people to ask, “Why low rewards?" In the future, I would like to think about how to send out information so that people will not worry. I apologize for the lack of follow-up.

How many blocks are reasonable?

By the way, reasonable number of block generation depends on the amount of stake, and can be checked from sites such as Adapools. You can see a graph like the one below. The vertical axis is the probability (%), and the horizontal axis is the number of blocks. You can see that 15 blocks are expected at 10% of the probability, and the expected number of 4 blocks is almost 0%. 50% of the time, you can expect around 13-17 blocks. The next epoch has been assigned 26 blocks, so it seems to fluctuate.

As other SPO’s have emphasized, we think it is important not to grab only the unlucky times. The return will be around 5% per year. In terms of risk management, I also think that it is a good idea to diversify and delegate to multiple pools if you have the extra capacity, similar to investing. Possible risks other than randomness (although randomness is a protocol) include operator errors (operational errors, not keeping up to date, not catching up with information, etc.), bad servers and software, and problems with upgrades such as hard forks.

Cardano360

Before I started SPO, I used to find these videos difficult to understand, but recently I have learned to listen to them with interest.

I always recommend David’s mini version, with Japanese subtitles.

Marlowe

Marlowe is one to watch in the future, so I have posted about it here.
IOHK’s blog is written about the recent Gamestop stock. There was a time when trading was restricted because the stock price was not in line with the exchange’s intentions. Do investors really have control over their money then? Marlow allows for peer-to-peer trading (no need for intermediaries), so it can be called democratized finance.

ADA/USD

It has been supported several times by the 100-day moving average (upper green dot). The ADA is relatively strong, and the RSI has also broken above 50 (yellow-green in the middle row). In the lower row, Stoch RSI is crossing above. As for Bitcoin, the 50-day moving average has fallen below the 100-day moving average.

I have been watching ADA for a long term investment with mostly daily chart. This is just my one perspective and is not intended to be a financial advice or any sort of such. Please check multiple resources when trading and perform by own responsibility.

Thank you for taking your time reading and support.
If you would like to support Cardano with us, I would appreciate if you follow my blog and twitter. Please stake with SUGAR stake pool if you like it. Thank you!