Running a stake pool vs. just delegating is covered here. It also talks about one way of staying competitive as a small pool and (if you don’t want to make the rich even richer) where to delegate to without loosing out on ROA.
I am really sorry to hear your story. But, to be honest all small pool are struggling. It is between continue or just close down the pool. Then I came to a conclusion, if you want to start a pool, you better have minimal of 1million ADA or your friend have it, otherwise it’s better to delegate.
hmm, or if u are lucky enough you can receive delegation from IOHK or CF. Anyway it’s required a lot of work to attract delegators as a small pool …
Agreed… a lot of effort to survive.
I don’t agree.
Anyone CAN start a stake pool and be successful. The success just doesn’t come falling from the air. Just as being successful running a business; In the beginning your costs will be higher than your profits. But if you have something others will appreciate you will attract their support. If you want to be successful you need to work hard and have some added value. If you do this you will get delegators. I don’t think that just donating is enough added value.
Even if you have a 1m pool, your delegators will still get 30% less ROA than they would by delegating to a much larger pool. IMHO, running a pool with < 10m requires some creativity that effectively lowers the cost for the delegator.
I am agree with you,
Just be persistent and do the hardwork, set every goal and reach them one by one.
That is how to persistently growing
I find this to be a bit of an insult to the OP as well as to other SPOs that have worked really hard and didn’t succeed!
Working hard is just only one component!
I think you have to be lucky to keep receiving that delegation from IOHK, because on the long run that doesn’t bring that much money and without the delegation you will have again the costs. So the only hope is to gather enough delegators to sustain over time your pool.
You are right about the added value and that donating is not enough you also need to be Binance and have 20 pools and $. Why is there not a limit to stop the big pools having more pools? But then you have some parameter to keep the optimal pools to a certain number, that is too low.
I appreciate more any single SPO that are running and having delegators, especially the ones that are MDP, so now I just wait to be able to delegate from my wallet to different pools from that list, not just one.
Sorry to hear that. I wanted to start a pool but realize the same thing you encountered which is why I haven’t. Current parameters just need adjustment to incentive decentralization better. Also, updating nodes should be a simple update manager like all other major software programs. Daedalus does it. For now, I’m going to wait until the system changes. Best wishes.
Hey Chary, sorry to see you go. I agree with everyone here. It really depends how bad you want something. I made it a long term commitment by reserving 3 year instances on AWS (quite expensive for something I made nothing from at the moment).
I still consider my stake pool extremely small ($160k) but after we actually found our first block last epoch. I think consistency and not giving up is key. We might have it a little worst since we started later than those earlier (during the testnet phase) but you know what they say:
Luck is when preparation meets opportunity.
Best of luck on your feature endeavors!
Once the system changes and favors the small pools, why would someone delegate to a pool that has no reputation? The reason I started my stake pool despite the odds being against me was because the stake pool needs reputation.
Things always come with sacrifices at the beginning, and I hope they eventually take into account days in operation, blocks founds, other factors,. etc
Skin in the game is the other reason to attract delegator, which is why I’m looking for a significant increase in the importance of pledge and a massive reduction in saturation level. I have no skills as a marketer and don’t want to put energy into that. I can’t pledge the 2M+ to mint every epoch but can pledge significant amount, so left in no man’s land.
yeah, it can be rough for sure but I agree the system can be improved by penalizing those with 2 Ada pledge (i.e., Binance1, Binance2, Binance3, …)
sorry to hear that, in fact it makes sad and pissed off because right now, I was reading a post of some influencer reading to open his third pool and asking his delegators, to move from one pool to another because it was becoming saturated…
there’s nothing Cardano can do in terms of parameters, tweaking variables whatever to fix that.
its a social issue, and social issues are faced doing conversations, campaigns, educating people.
staking is a new concept even for veterans on crypto. people just don’t get it.
we must do something but as a community, not asking changes in the protocol because its already works very well. the saturation wasn’t created for people splitting pools but to others have a chance to mine blocks.
only delegates have the power to change.
sorry to hear this…
Here is a good reward distribution proposal I found:
I know and I was thinking to commit also for the next years with a cloud provider, but does that help decentralization? If all people will be on GCP/AWS/DigitalOcean ?
Plus my decision lies also in the marketing factor, that currently I really don’t have time for that. The technical is not a challenge at all, thanks to the community. And congrats for your first block!
there are some services way cheaper, AWS google cloud or azure are more like for the big pools like DNews the influencer does. unfortunately they use this as advertising, we know that a pool host doesn’t make any difference if its up, running and working. regardless the brand of the cloud, a pool is the same anyway but delegators doesn’t know about that…
You can use another provider, I haven’t used any other. I’m looking to set up another relay on Contabo or another cheaper provider if I can find. You can do a home node, which may or may not be a good choice depending on your internet connection stability: