There are a few of things to consider when choosing a stake pool to delegate:
- Low permanent fees and good performance – Maximizing rewards earned.
- Saturation equilibrium.
- Stake pool performance.
- Promoting decentralization.
- Stake pool rewards.
1. Low permanent fees and good performance
To maximize rewards earned you want to choose a pool with low fees. There are two components to a pool’s fee: fixed fee and a percent of rewards
The average stake fees percentage for Cardano stake pools are around 2%-5%. It is also important that the stake pool is reliable and does not change stake fees and percentages after you delegate your stake. Sometimes some pools will change their stake pool fees just before the next epoc, so you need to find reliable stake pools that promises not to change fees. At NCA pool, we do not change the fee structure.
The minimum mandated fixes fee for a Cardano stake pool to be registered on the network is 340 ADA for each block produced. The average fixed fees for Cardano stake pools are around 340-500 ADA. At the NCA stake pool, we require the minimum mandated fee of 340 ADA.
Find stake pools with larger pledge from the stake pool operators. This helps cover most of the expenses that come in with the fixed fees and this helps smaller delegators receive a better reward. This also shows the commitment of the pool owners to maintain the stake pools top performance for the delegators. At the NCA stake pool we have an initial pledge of 30,000.000000 ₳. Read more about pool pledge.
2. Stake pool saturation equilibrium
You need to choose a pool that is not over saturated. The current implementation attempts to enforce decentralization by capping rewards at a specific limit to prevent pools from growing too large. Current state pool saturation threshold is around 64 million, so try to find a pool with a smaller pledge amount.
At the NCA stake pool we will monitor saturation closely to make sure we are at high performance. We are setting up infrastructure to launch the second stake pool once we are about to be over-saturated to ensure maximum performance for the delegators. Read more about saturation levels.
3. Stake pool performance
Consider pool performance. This is a bit difficult because the metrics displayed in the Daedalus can be wrong or at least misleading.
The performance percentage is calculated by dividing the number of blocks produced by a pool by the number of times it was selected. Ideally this would be 100% which would mean the pool node was always online and in sync with the network when its turn came. If a pool is struggling with staying synced it may miss its turn and not get to produce a block and earn rewards.
Additionally, small pools who my be performing just fine technically might have 0% performance since they simply have not yet been called upon to produce a block.
The Cardano stake pool software is being updated frequently. Especially with the mainnet staking, pool operators may have to perform a few software updates every week both to the stake pool and to the pool nodes. Delaying to implement an update may reduce pool’s ability to mine blocks and to generate rewards.
This is why at the NCA stake pool we monitor our server health, latency connections between the pool nodes and the blockchain and server up time. Our system administrators perform regular updates to both the stake pool and the pool nodes. We also have superior firewall, DDoS protection and thirteen dedicated relays in North America, Europe and Asia.
Plan ahead. Some pools are announced to be retiring soon so you should delegate or redelegate to pools that are here to stay. For example the 20 IOG staking pools run by the Cardano’s parent organization IOHK are announced to be retired in 2021.
4. Cardano stake pool rewards
Earnings are subjects to several network-wide parameters such as the number of tokens participating in staking and the individual configurations of your Cardano (ADA) stake pool.
With the launch of Staking in July of 2020, there are about 14 billion ADA reserved as stake incentives for participants. Each epoch (5 days) the protocol distributes 0.3% of this total reserve pool between all active stakers. Therefore rewards are being distributed every 5 days and compound automatically.
For example the NCA stake pool had 7.65% return rate through Epoc #2018. The common Epoch ROA is around 5%, but some staking pools will have a smaller return because of technical difficulties.
Read more: How to stake Cardano – complete guide.
Why choose the NCA stake pool
At No Central Authority stake pool (Ticker: NCA) we monitor the stake pool 24/7 to ensure the up time and saturation of the pool.
Making sure we don’t have downtime is important to have a high-performance stake pool to ensure the pool mines more blocks and distributes rewards.
With relays all over the word, we ensure Geo politically and commercially decentralized stake pool with no single point of failure.
We’ve pledged 30,000.000000 ₳ into the pool and we have vested interest to maintain the pool and provide premium return of all participants that pledge to the NCA Cardano stake pool.
Additionally providing support to our delegators is important to enhance, update the tune the stake pool based on users feedback.
Join us today, stake with us!
- Superior performance: Check out the NCA pool performance in ADApools.com
- High reward ratio: 98% of the rewards are automatically paid to delegators by the blockchain , 2% of the rewards are paid to support the pool server cost.
- No extra requirements: No minimum ADA requirement to delegate.
- Low-latency server: Hosted on a premium low-latency network with latency monitoring to ensure block generation.
- Frequent updates: Our system administrators update the stake pool and the pool nodes with the latest Cardano builds daily.
- Server specs: Quad Core CPU, 16GB RAM, 100% NVMe 240GB SSD. Low latency memory with blazing fast read/write performance.
- Secure server: 10Gbps DDoS Protection from attacks.
- Multiple relays: 13 dedicated relays in North America, Europe, Asia, Australia, South America. All nodes are hosted on different major Cloud based high availability networks (AWS and Google cloud). At No Central Authority we provide a Geo politically and commercially decentralized stake pool with no single point of failure.
- Large pool pledge: initial stake pool pledge of 30,000.000000 ₳
- Support: contact our system administrators via email for further questions at [email protected]
- Stake pool ticker: NCA
- Pool id: e151c6e13d6e6ffe8ed7a99ab40d31164592f8fb1ceeb1b24db49d2f
Join us today, stake with us!
It is that easy: Here is how to stake Cardano – complete guide.
When should you expect the reward payouts
We have created an infographic to help you get familiar with the payout schedule.
Stake your ADA and join the network.