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Author Topic: Picking out ADA staking pool.  (Read 96 times)
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naska21
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December 29, 2019, 09:19:36 AM
Last edit: December 29, 2019, 09:33:31 AM by naska21
Merited by CryptopreneurBrainboss (2), Raja_MBZ (1), HBKMusiK (1)
 #1

Personal reasoning.

Each of us strives to get the most out of the staking of our ADA coins and, accordingly, select the “right” pool to delegate them. A list of available pools can be found in the Stake pools tab inside of the main window of the Reward Daedalus wallet. adapools.org and  pooltool.io can also help in this matter.

In an effort to achieve the full POS decentralization, Cardano intentionally does not give any recommendations for choosing the staking pool. But whatever one may say, the most profitable pools do exist. To find out  them  I pay attention to the following.

1)Ongoing  operation. In the best possible way  the pool should operate in 24 x 7 mode, which is facilitated by its technicalities. In turn, the last is determined by both relevant hardware  and how advanced is the technical staff running that pool. Those details can be found on the site associated with the particular pool. Also, it is very important for the pool to have the  fast Internet https://testnet.iohkdev.io/en/cardano/shelley/get-started/guide-for-stake-pool-operators/

2) Coins amount delegated to the pool. Click on the selected pool in Daedalus and look at  Controlled stake  parameter. Accordingly, on the website of adapools.org click on the "little man" symbol next to the pool number and  look at Total Stake. When choosing a pool for staking you need to keep in mind that the more coins are delegated to  the pool  the more likely for him to get leadership in the era's slot and create a block. However, it should be noted here that Oroborous  protocol provides a saturation threshold above which the block reward decreases with a progressive dependence. Reward reduction begins if the pool controls above 1% of all coins participating in staking. In the 9th epoch,  7272M ADA have been eligible for stacking. Hence, pools that controlled > 72M coins have faced a decrease in rewards. Personally, I choose pools that consolidate for staking as many as  30M - 70M ADA. Pools with Controlled coins <1M is not worth considering, IMO.

3)Reward the pool remains for itself.  Here you need to pay attention to the following parameters. Cost per epoch (CpE) in Daedalus, which is equivalent to the "fix" on adapools.org. CpE means the fixed amount of ADA that pool will retain after the end of the epoch. If in the course of epoch  the pool has been rewarded with 1000 coins  and "fix" = 40, then it will keep these 40 ADA  for itself, subject to a sufficient total reward. If total era's rewards is  less than the value of "fix", then pool does not take that "fix" amount.

The next parameter is Profit margin  in Daedalus (equals  to  Tax-% on adapools.org).  It shows what percentage of the reward the pool will keep for itself. "Fix" is not included into this percentage.It turns out like this: first, "fix"  is deducted from the rewarded coins, and then Tax-% is taken from the balance. As a result, the pool remains "fix"  + Tax-% of (rewarded coins minus "fix"). Based on this, I pay attention to pools with CpE = 0 and Profit margin ≤  5%.

4) ROI. This metric can be found on adapools.org  and when focusing  on that  one must keep in mind that it is relevant to previous epoch. Therefore, I pay attention to its  dynamics. If it grows, then the pool is not bad.

5) Produced blocks shows how many  blocks have been created by the pool during an era. The parameter should change upwards during the given epoch. If it doesn't change, then something's wrong with the pool.

6) Performance. Looks like the closer you get to 100%, the better. Roughly efficiency is calculated as the ratio of the created blocks number to that one expected from theory. I pay attention to this parameter at the end of the epoch and consider it as one of the triggers to change the pool.

My reasoning was aided by my own, albeit small, experience (but who has a big one if the ADA staking is roughly a week old?) And the following materials:
 
1) https://medium.com/@CardaniansI/how-cardano-pool-operator-fees-work-567d51b1126c
2) https://medium.com/@eshev/cardano-faq-fc928ac1018c

Daedalus wallet threat: https://bitcointalk.org/index.php?topic=5201353.msg53071620#msg53071620


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December 29, 2019, 09:21:04 AM
Last edit: December 29, 2019, 09:47:16 AM by naska21
 #2

Some extra:

Useful relevant  chart-flow, but you need to be critical - the one who posted it on reddit is clearly promoting the pool named in that yellow rectangle, so be wise to choose your own.









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December 29, 2019, 09:21:26 AM
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December 29, 2019, 09:21:39 AM
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February 07, 2020, 09:17:06 AM
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UP!

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