Stake pool performance vs margin

Hexadecimal
Aug 2 · 3 min read
Image for post
Image for post

John Doe needs to pick between two pools.

Let’s assume that the block reward is 1000 ADA/block and that 10M delegated ADA gets 10 slots for both pools.

The only difference between the two pools is the pool margin.

Image for post
Image for post

Scenario 1: Both pools mint all blocks

Image for post
Image for post

Both pools will get 10.000 ADA.

After subtracting the epoch cost and the 1% pool margin for pool A we’re left with 8910 ADA and John Doe will get 89.1 ADA

Stake pool B has a higher pool margin, 5%, so after we subtract all taxes John will get 85.5 ADA

In this first scenario, John Doe would be better off with pool A because it gets him 3.6 more ADA than pool B

Scenario 2: Pool A misses one block

Image for post
Image for post

Instead of getting 10K rewards, pool A will only get 9K.

After subtracting the epoch cost and the 1% pool margin, John Doe will get his share of 79.2 ADA.

In this scenarion John is way better with pool B because with pool A he would get 6.2 less ADA than with pool B.

He might get 3.6 more ada with pool A on a sunny epoch however a rainy epoch would set him back at least 6.2 ADA.

Image for post
Image for post

Pool performance is more important that tax!
The gains from a low margin pool will be easily wiped out if the pool does not perform properly.

A few words about myself: I’m the stake pool operator of the Hexadecimal pool — ticker HEX. My pool is up and runnig on mainnet and it’s ready to accept delegators.

I want to talk a bit about my performance on the Incentivized testnet.

Please note that ITN Performance might or might not correlate with mainnet performance. This is just me talking about my previous accomplishments.

I’ve created a spreadsheet with all the pools from the ITN ordered by ROS. To filter out any statistical outliers we’re going to look at pools with at least 100 blocks:

Image for post
Image for post

As you can see, my pool had a 12.75% ROS on the ITN which makes it the 3rd most profitable pool that also produced blocks on a consistent basis.

I will be providing the same reliability on mainnet, so if you’re looking to delegate to a pool, consider mine since I have a proven track record.

Thank you,

Timo

Get Best Software Deals Directly In Your Inbox

Image for post
Image for post

Coinmonks

Coinmonks is a non-profit Crypto educational publication.

Sign up for Coinmonks

By Coinmonks

A newsletter that brings you week's best crypto and blockchain stories and trending news directly in your inbox, by CoinCodeCap.com Take a look

By signing up, you will create a Medium account if you don’t already have one. Review our Privacy Policy for more information about our privacy practices.

Check your inbox
Medium sent you an email at to complete your subscription.

Hexadecimal

Written by

Cardano Stake Pool Operator Ticker [HEX]

Coinmonks

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com

Hexadecimal

Written by

Cardano Stake Pool Operator Ticker [HEX]

Coinmonks

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store