Choosing a pool to delegate to can be a bit of a dawnting task, especially when you don’t really know what to look for, because there is no one best pool to delegate to. As a delegator you’re indirectly one of the core components and your actions may determine the decentralization and adoption of the platform. This is a brief overview on what to look for when choosing a stake pool.
First, let’s discuss the different aspects that users should consider when selecting who they would like to support. If you’re unsure here are some platforms to help you with the decision making:
There is a fixed fee which is normally set at 340 ADA as this is the minimum set out by the network.
There is also a pool margin fee set by the pool operator and can be anything from 0% to 100%
Example:
If the Total pool rewards per epoch = 1,340 ADA
Fixed Fee = 340 ADA
Left = 1,000 ADA
Pool margin Fee 2% = 20 ADA
Total split between delegators = 980 ADA
The split is dependent on how much ADA each delegator has delegated.
Pool Operators will almost always include opportunities for people to subscribe to their channels (be it telegram groups or twitter feed or website). It's critical to join these channels if to stay on top of changes of pledge amount or fees.
This is an estimate of the pool's performance based on how much stake protocol believes a pool would have made vs how much the pool really produced. Every block (until saturation point) is rewarded by protocol, therefore a delegator would prefer to continue with a pool that has more than 85-90 percent performance.
It's worth noting that we can't say for sure because the actual blocks created by pools will vary depending on how many blocks were given to each pool. For blocks to be allotted, there is some chance involved, but it is proportional (like a roulette wheel reserving a higher number of slots according to bet) to stake.
We hope this has been an informative overview of what to look for when delegating to a pool. We have our own high-yield pool CardanoSwiss [SWITZ] with the security of the swiss. If you’re interested in how to delegate you can check our guide
here.
If you have any questions regarding staking, wallets or anything Cardano-related feel free to
Contact us or write to us at
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