The Shelley roadmap laid out the expectation that the project could achieve 100 times the decentralization of other networks.
Unfortunately, we are far from decentralisation at the moment, the pie chart below shows that 16 pools control over 50% of the network.
And nearly 80% of the network is controlled by multiple pools operators.
What can we do to help Cardano become the most decentralized network in the world?
Easy answer……..delegate to small pools instead of big pools, this is as simple as that.
Why shouldn’t you delegate to large pool?
- By delegating to large pool you contribute to the centralization of the Cardano network
- By delegating to small pools, you contribute to the decentralization of the Cardano network, which help increase Cardano’s value and so does ADA price.
Why don’t delegators delegate to Small pools?
#They don’t know any small pools
It is very hard to find small pool using a Daedalus or Yoroi wallet, most delegators only delegate to pools they see on the 1st row of the ranking
#Fear of getting lower rewards
If a pool doesn’t mint a block, delegators don’t get rewards, it is as simple as that.
So why would delegators risk delegating to small pools?
This is a common misconception, rewards average out, the rewards for staking ADA have been set for approximately 4-6% per year (Return on Stake, or ROS).
Large pools find more blocks than smaller pools and tend to pay out more consistent rewards. Ex: Across three epochs, a large pool may payout 5%, 4.9%, and 5.1% ROS
Small pools, on the other end, will have much more variation in the number of blocks they produce per epoch, and so their rewards will vary significantly. Ex: Across three epochs, a small pool may payout 5.5%, 9.5%, and 0% ROS, but over time the rewards will average out to the same % as the bigger pool.
What are we going to do To Help Cardano Become The Most Decentralized Network In The World?
This January, we will randomly select a small pool and delegate 200K ADA to it.
How will it work?
- Like and retweet the following tweet
Help #Cardano Become The Most Decentralized Network In The World— KIND Stake Pool, $400 giveaway in Dec (@KindStakePool) December 22, 2020
🚨This January, we will randomly select a small pool and delegate 200K #ADA to it.🚨
➡️Like and retweet
➡️Reply with the name of the small pool you would like us to pickhttps://t.co/K6CnKQl42t pic.twitter.com/fdARYLJkYb
2. Reply to that tweet with the name of the small pool you would like us to delegate the 200K ADA to
3. At the end of January we will randomly select one of the suggested pool and delegate 200K ADA to it
♦The pool needs to be a single pool as we will not delegate to SPO who run multiple pools.
♦We ll only delegate to a pool that has less than 5 Million ADA live stake
The mission to turn CARDANO into charitable giving is a large part of what drives KIND Stake Pool.
Let’s make a difference together.
Your delegation helps others!