What is a Stake Pool?
- In brief, a stake pool acts as a witness to validate transactions and then add those transactions to the blockchain. It is through stake pools that the Cardano network is secured, and remains decentralized and autonomous. For those new to the Cardano blockchain, we have written a simplified article in our blog section that elaborates on the answer to the question, “What is a Stake Pool?”
To achieve maximal rewards for delegators, a stake pool’s infrastructure needs to be running with nearly 100% up time. Other than electricity and a basic server, redundancy and backup must be introduced into the infrastructure to provide a fall-back in cases where data-center hardware fails or networking service is interrupted.
We strive to balance business costs with the desire to reward all delegators, who are striving to maximize their return on investment. To achieve this harmony, we will continuously tweak the stake pool margin to arrive at a fair balance. Our intention is to start with conservative margin settings and lower them as operating time proves that we can do so while still covering costs.
(24 February 2020 update: we intend on lowering pool margins as soon as the protocol code is live in the blockchain. The pool-modification code partially exists as of this writing, and certain pieces of it are coming in the near future. Once the code is in place, a large majority of the stake-pool community must be running that new code across the network before lowering the pool costs will be possible without many of the pitfalls that we’ve heard about from other pool operators. We were one of the earliest pools in the Shelley Incentivized Testnet, and at the time of our launch, we needed to make a best guess about pool costs, without the benefit of the competitive data currently available. We have a close eye on this and will be making adjustments as soon as it is safe to do so. In the meantime, we are a solid pool that pays 92.5% of pool rewards to our delegators.)
With more than a third of a century of high-performance system architecture; DevOps, and mission-critical data-systems expertise on the team, we have the skills and experience to deliver excellent up-time of the StakeHodlers stake pool. We run on infrastructure that can easily be expanded world wide to provide the needed redundancy and colocation to ensure security and high-performance.
At the same time, we strive to use existing cloud infrastructure as little as possible, in order to make the Cardano network and blockchain as decentralized as possible. Furthermore, in an effort to do our part in ensuring our planet is a great place for our collective children and grandchildren to inhabit, we also attempt to run on the lowest power computers that will handle the load typically put on a stake pool.
Your participation in the StakeHodlers stake pool starts with delegating part or all of your ADA to the pool. This will initially be done via your Daedalus or Yoroi wallets. StakeHodlers will never ask you to transfer any amount of crypto currency to us, and the delegation process is well documented on the official Cardano website, found here: https://staking.cardano.org/en/delegation/
As the Cardano Shelley Main Net approaches full operational status, we will post educational materials to help you understand how to participate in any legitimate stake pool that you choose.