We are excited to announce that we have released a Rewards Calculator on the official Incentivized Testnet website today! You can use to estimate the approximate rewards for delegating your stake or running a stake pool. It is important to note that the actual amount of ada received in rewards may vary, and will depend on a number of factors, including stake pool performance, network participation and changes to network parameters, which are part of the testing process.
And in case you missed it, we also published a Stake Pool Operator Guide for those interested in reading up on the process and necessary steps to run a pool on the Incentivized Testnet. This is now available on the testnet website in English and Japanese, with Korean and Chinese to follow soon!
In the guide, you’ll read about stake pool registration, which you can get started on with the launch of the CF Stake Pool registration GitHub. It is important to note that this is a pre-registration, meaning stake pool operators will be able to see whether their pull requests pass the automated CI tests for the required metadata, but that the Foundation will not be merging any pull requests until the network is ready. Head to the GitHub page for more details on this process.
You can enter the amount of Ada you have to stake and it shows you how the rewards are distributed over time. If you click on advanced options you can manipulate some variables to see how it may impact your rewards payouts. Much more than you get in a bank given the price of Ada does not collapse.
The percentage is strictly a mechanism to induce behavior that is optimal for the health of the network. It will adjust over time to make that happen. There are also other moore altruistic motivations at play with Cardano like a genuine desire to help humanity. These things make for a powerful mix of incentives but economic incentives have the broadest appeal. When the security of the network depends on getting the majority to participate and stake their coins I think starting high is prudent. I’m sure they ran a bunch of simulations and calculated the Nash equilibrium on this as well.
I did a little web searching and found that participation in Tezos baking is currently around 80%. I could certainly imagine that Cardano would equal that number once mainnet is live.
When I set the slider on the Calculator to 80% the annual return is 4.88%.
Here is my source on Tezos, I found other articles to back up the number:
Also found this article on Staking taking off on 2020:
Obviously not. I don’t know why the sample figure is so high, but this is decided by the operator after looking at all his costs such as server rental. Just like the costs of any business.
