Build networks, get paid and take part in Cardano’s journey by delegating stakes.


Source of dark blue part: cardano.org

Ada held on the Cardano network represents a stake within the network.The size of the stake is proportional to the amount of Ada you have.The ability to delegate and pledge stakes is fundamental to Cardano’s mechanics.

There are two ways for Ada holders to get paid.You can delegate your stake to a stake pool run by someone else, or run your own stake pool.The Ouroboros Protocol adds the next block to the block chain, thereby selecting the person (stake pool) to receive monetary rewards.The amount of stakes delegated to the stake pool at that time will affect it.

The more stakes delegated to the stake pool (up to a certain point), the more likely it is to create the next block.The reward will be distributed to everyone who has delegated their stake to that stake pool.

Delegation is the process by which an Ada holder delegates the stakes associated with his Ada to the stake pool.This allows Ada holders to join the network and be rewarded according to the amount of delegated stakes, even if the node (server) cannot operate.

* Since it is not a remittance of Ada, there can be no loss of Ada due to delegation.

Incentives have been introduced to ensure the longevity and soundness of the Cardano Network and its ecosystem.The mechanism of incentives is backed by scientific research that combines mathematics, economic theory, and game theory.

The stake pool is operated by the stake pool operator.Operators are network participants who have the skills to ensure the reliable operation of nodes (servers).This is essential to ensure the success of the Ouroboros Protocol and the Cardano network as a whole.

This protocol uses a probabilistic mechanism to select the reader for each slot.The probability that a stake pool node will be chosen as the slot leader responsible for generating the next block increases in proportion to the amount of stake delegated to that node.Each time a stake pool node is elected as the slot leader and successfully generates a block, that node receives a reward, which is distributed in proportion to the amount of stakes delegated by each member.The stake pool operator can deduct the running cost from the Ada given to the pool and also specify the rate of return for providing the service.

Yes.Delegated stakes can be re-delegated to another pool at any time.The re-delegated stake will remain in the current pool until the next epoch (counting from the time of the re-delegation).After that, your delegation preferences will be updated on the chain and your stake will move to the new stake pool.Rewards will be distributed at the end of each epoch, so you will continue to receive rewards from the original stake pool for two epochs until the new mandate is applied.

You need to create a separate wallet.You can then delegate the stakes associated with each wallet to a specific stake pool.

* As of June 2021, there will be one delegation per wallet.In order to delegate to multiple pools, it is necessary to create a wallet for that amount.

Performance metrics are indicators of how well your stake pool is performing.Given that the slot reader election process is private, you can only estimate how often the stake pool should be elected based on the number of blocks actually generated.Pools may be nominated more often than expected based on their stakes.For example, if the pool is only able to generate half the number of blocks nominated, its performance rating will be 50%.This can happen if the pool has poor network connectivity or is down by the operator.

Performance evaluation makes more sense over a long period of time.If a pool is not yet selected to generate blocks in the current epoch, the performance rating for that pool will be 0%, even if it is possible to generate blocks later in the epoch.If the pool produces more blocks than the designated number of blocks, you can get a performance rating of 100% or higher.

In Daedalus and Yoroi, performance affects stake pool rankings.

Saturation is a term used to indicate that the number of stakes delegated to a particular stake pool exceeds the ideal number for the network.Indicates that the reward will decrease as the pool reaches the saturation point.The saturation mechanism is to encourage delegates to delegate to different stake pools and set up alternative pools so that operators can continue to earn maximum rewards.It is designed to prevent centralization.Therefore, saturation exists to protect the interests of both Ada holders and stake pool operators who delegate stakes.

The goal is to prevent a single pool from becoming too large, hindering delegation to other pools and paying disproportionate amounts of rewards.One of the factors that determines the health of the network is the large number of active stake pools and the balanced delegation of stakes.The larger the number of pools in your network and the more geographically diverse it is, the better.The saturation rate for each stake pool is displayed in the Daedalus stake pool selection menu.

Desirability is a measure of how desirable a stake pool is for an Ada holder who is trying to delegate a stake.This is influenced by many factors such as stake pool margins, fees, performance, current epoch total rewards, saturation rate, etc., and influences stake pool rankings.

In addition to various factors, stake pools are ranked primarily by their combination of desirability and performance.

You can use Reward calculator to get an idea of ​​how much you can earn with your reward.It is important to note that this calculator only outputs an estimate of the reward and does not guarantee a definitive or reward amount.In the future, we plan to test various parameters that may affect the reward margin.Therefore, the calculated amount is subject to change, but represents a realistic and meaningful level of return.

* It is said that if you continue to delegate for a long period of time, you will get a return of around 5%.The reward consists of unissued Ada and fees, and the portion paid by the unissued Ada gradually decreases.

Yes. You can use Daedalus to restore your hardware wallet balance.However, we recommend that you be careful in that case.Entering a hardware wallet recovery phrase into Daedalus can expose your hardware wallet’s private key to security risks.Recommendations for minimizing security issues can be found from Daedalus during the hardware wallet restoration process.

Yes.The rewards you earn will increase your original stake.When you receive a reward, your reward account balance will increase, resulting in an increase in delegated stakes.

  • This is a project aimed at the world’s financial infrastructure.
  • Its crypto asset, ADA, enables fast and direct remittances with guaranteed security through the use of crypto technology.
  • It is implemented based on scientific philosophy and peer-reviewed academic research.
  • It’s an open source, decentralized (aiming) platform.
  • Git’s commit (development), promotion, and SNS communities are active.
  • It is a smart contract platform similar to Ethereum, and solves the scalability and fee problems of Ethereum and others.
  • The layered architecture provides scalability and security.
  • It is the top market capitalization in CoinMarketCap.

According to the developer, in the Excel formula,
POWER ((Reward / Stake amount obtained) +1, (365/5))-1
It will be.In most cases, the rewards received are delegated as they are, so the calculation is compound interest, so the number of epochs per year is used as the power.

At the end of the epoch, the rewards earned throughout the pool will be distributed according to the following flow.

  1. A fixed fee is deducted and paid to the pool operator.
  2. The delegation fee is deducted and paid to the pool operator.
  3. The remaining ADA is distributed to the delegator and the pool operator according to the delegation amount.

Example: If the pool reward is 1000 ADA, fixed fee 340 ADA, and delegation fee 3%, at the end of the epoch,

  1. 340 ADA is deducted as a fixed fee for the pool.
  2. 3% of the remaining 660, 19,8 ADA will be paid to the pool.
  3. The remaining 640.2 ADA is distributed to the delegator and the pool operator according to the delegation amount.

Unless you have a strong commitment, I recommend Yoroi.
Daedalus is a desktop type wallet, which is called a full node wallet, and synchronizes with the blockchain.Therefore, sufficient specifications of the PC may be required.On the other hand, Yoroi is called a light wallet, which does not require synchronization and can be easily used on a browser such as Google Chrome.It is also compatible with smartphones.

Nami Wallet is a browser extension that is very nimble to use. Prior to Yoroi, it became possible to connect to websites, link with dApps, and display NFTs on apps.

It will not be.There is basically no restriction that you will not be able to receive or withdraw rewards unless you continue to delegate for a certain period of time.

One thing to keep in mind is that due to the mechanism, when you first delegate, you will receive the reward up to 20 days later. For more information, please also check How to choose a delegation pool 

  • Rewards are not paid immediately after delegation, and the first distribution takes around 20 days.
  • By delegation, your ADA will not leave your wallet.Therefore, even if there is a pool failure or hacking, there is no effect.
  • After creating the wallet, there will be a 2 ADA deposit and a small fee for the first delegation.The fee will be refunded when you cancel staking.
  • There is a small fee to move the delegated pool.