First, big hat-tip to Clio1. The team over there did an excellent job on this visual! It looks like they have some great educational content as well, so please go check them out.
The following visualization was posted on Reddit, and should be very interesting for anyone involved in staking (either pool operators or delegators). It shows the flow of stake, available within the Shelley Incentivized TestNet, across the top 200 pools, over the first 80 Epochs (80 days, in this case). Things to keep in mind as you’re watching the visualization:
- The huge institutional whales who had ADA concentrated in pools on the extreme left chose to remain saturated for a while. Most of these were likely IOHK pools, staked with only IOHK-owned ADA.
- As the community learned more about delegation over time, the majority of pools tended toward falling under the saturation level, which has changed over time as the network stabilized and more pools became reliable at producing blocks.
- Delegators learned through experience that small and medium sized pools provide long term rewards that are similar to the largest pools, so the histogram smoothed out.
- As pools grew (especially the early ones), they tended to go through a cycle of shooting above the saturation level, until a subset of the pool’s delegators realized that they could achieve greater returns by redelegating their stake to smaller pools. Such moves inevitably help both the delegators that moved, and the delegators that remained in the previously oversaturated pool.
- This demonstrates excellent community self-organization, and is a clear demonstration that at least a portion of the game-theory, upon which the Ouroboros protocol is based, is working well.
Enjoy! (Note that you can manually move the slider, but I suggest you watch at the normal visualization speed at least once, all the way through to get a true sense of stake flow over time.)
Here’s the link, for those who want to go directly there. https://public.flourish.studio/visualisation/1493064/