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?”. Also, read more about our names.
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 power fails; data-center hardware fails, or networking service is interrupted.
We strive to balance business costs with the desire to attract and reward delegators, each of whom are striving to maximize their return on investment. To achieve harmony in our symbiotic relationship, we will continuously tweak stake pool margins 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.
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 pools. 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 minimally, 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 attempt to run on the lowest power computers that will handle the load typically placed on a stake pool.
Your participation in a StakeHodlers stake pool starts with delegating part or all of your ADA to one of our pools. 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 official Cardano websites, found here: https://staking.cardano.org/en/delegation/
and here is a video from Emurgo about staking with the Yoroi wallet: https://www.youtube.com/watch?v=_KdP_RSEzq4
As the Cardano Shelley Main Net approaches full operational status, we will continue to post educational materials to help you understand how to participate in any legitimate stake pool that you choose. Additionally, we will update you on the StakeHodlers Hydra heads as more information becomes available about Cardano’s scalability and performance enhancements. These are exciting times! Stay well!