FAQ

• Cardano aims to be 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 is eco-friendly because blocks are generated by using PoS.
• It's an open source, decentralized platform.
• Git's commit (development), promotion, and SNS communities are active.
• It has 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 one of the top assets in market capitalization, in CoinMarketCap.

It represents Cardano timeline. As of 2022, one epoch equals 5 days, and it is incremented every 5 days.

According to the developer, in the Excel formula, POWER ((Reward / Stake amount)+1, (365/5))-1. In most cases, the rewards received are delegated recursively. Therefore, it is multiplied by the number of epochs per year, calculated as compound interest.

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

1. A fixed fee is deducted and paid to the pool operator.
2. The variable fee is deducted and paid to the pool operator.
3. The rest of ADA is distributed to delegators and the pool operator according to their delegation amount.

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

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

Unless you have a strong reason, 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 PC must met. 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 has a mobile app as well.

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

No. There is basically no restriction by delegation. You can receive and withdraw ADA at anytime you want. One thing to keep in mind is that due to the mechanism, when you first delegate, you will have to wait for up to 20 days until you receive the first reward.

• 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 to your asset.
• After creating the wallet, there will be a 2 ADA deposit and a small fee for the first delegation. The deposit will be refunded when you deregister.
• There is a small fee needed to move from a pool to another.

ADA held represents a stake within the Cardano 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 rewarded. 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 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 a process by which an ADA holder delegates stakes associated with his/her ADA to a stake pool. This allows ADA holders to join the network and be rewarded according to the amount of delegated stakes, even if he/her cannot operate servers.
* Since it is not a remittance of ADA, there can be no loss of ADA due to delegation.

Incentives are in place to ensure the longevity and health of the Cardano network and its ecosystem. The mechanism of incentives is backed by scientific research that combines mathematics, economic theory, and game theory.

Yes. Delegated stakes can be re-delegated to another pool at any time. The re-delegated stake will remain in the current pool for 2 epochs, upto 10 days. 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 2 epochs until the new delegation becomes active.

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, basically one delegation takes place per one wallet. In order to delegate to multiple pools, it is necessary to create new wallets for that amount.

Performance metrics are indicators of how well a stake pool is performing. Given that the slot leader 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 elected 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. It indicates that the reward will decrease as the pool reaches the saturation point. The saturation mechanism is to encourage delegators 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. 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 the 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 the reward calculator to get an idea of how much you can earn with your stake. 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, they 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.
* As of 2021, 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. The portion paid by the unissued ADA gradually decreases, and so do rewards.

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 earned will increase your original stake. When you receive a reward, your reward account balance will increase, resulting in an increase in delegated stakes.