I know this is a subject that irritates many of the larger pools and technical people in Cardano but I am sorry but I have to bring it up again as I believe that it is a compliance concern. I have worked in compliance for the past 20 years and I am actually quite surprised that this is not being addressed.
There are 3178 Stakepools. If you look at Pooltool you can see that 57% of current pools have a Lifetime ROS of < 3 % and 38% have returned 0%. This is significantly below the expected 4.5% expected by Delegators. Small pools only minting 1 or less blocks in an Epoch are taking greater than 50% of rewards which is basically ripping of the Delegators. You can come up with all the technical defences in the world for this but from a compliance perspective I see this as a real issue. We cannot promote Cardano as being a strong eco system with 3000 plus pools when over half of them give a return of less than 3 % when the community message is that you get 4.5 % from staking. Yes the large pools are returning close to 4.5% but that is not the point. Delegators do not know this and Delegators do not understand the process. They pick a pool and expect this return. As long as the minimum fee is set at 340 ADA every delegator out there is at risk of not getting anywhere near the expected return if they randomly select a pool. Now you can say what you want as this is basically an unregulated area. However regulators are increasing likely to look into matters where the small investor is not being looked after. Many small investors are being told that you stake with a small pool and you get 4.5% return or you will get the same returns as large pools. This is not true and needs to be addressed. The easiest way to do this of course it to remove the discriminatory 340 ADA pool fee so that small pools can give a return to their delegators that approaches that of the larger pools being a value approaching 4.5% over time.
If we want Cardano to be decentralised we have to be honest about how the delegation process works and this is no longer about a small Stakepool being competitive. This is about the facts that a Delegator should be told when choosing to make a delegation to a Stakepool. If I were a Delegator and did not know much about the Delegation process I would believe that I have right to know how the system works.
Cardano can not hide behind the idea that this is a decentralised process and so the community decides as it is not the community that is deciding what the parameters are for min Pool Fees etc. Responsibility lies on IOG and the CF with regards to this and they have to address the compliance concerns