# Clarification on Cardano Foundation Reward Calculator

I know it’s just an estimate, but the numbers should still make sense. To me they do not.

I have 1,000,000 ADA to delegate and am trying to get maximum rewards.

Here’s what I set:
daily fee = 68
tx fees = 0
total stake pools = 500
operator reward = 0%
stake pool performance = 100%
a0 = 0.3
treasury rate = 20%
expansion rate = 0.3%

I varied just the stake pool operator’s stake (pledge) and the stake pool total stake (saturation). I made a chart with the delegation reward % results. Max rewards are in bold and underlined.

Looking at the reward equation here: Pledging and Rewards — Cardano Documentation 1.0.0 documentation

It says:

1. Rewards increase with σ, but stop increasing once σ reaches z0, that is. once the pool becomes saturated.
2. If a0, (the pledge influence,) is zero, this formula simply becomes R·σ’, so it is proportional to pool stake, up to the point of saturation. For larger values of a0, the pledge s becomes more important.

In other words:

1. higher saturation, higher rewards (up to 100%)
2. higher pledge, higher rewards (if a0 ≠ 0)

The numbers I generated using the calculator do not agree with statements 1+2. This is where I am confused. Is the reward calculator correct or is the reward equation correct or am I just completely misinterpreting something?

Any clarification would be appreciated.

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You are right, it cannot have those values, so there must be some glitch in the official member reward calculation as member reward is `(f(pool_stake, pledge)-c)(1-m)*(your_stake/pool_stake)` when `f(stake, pledge) > 340` and `0` otherwise.

So, it becomes percentage when you divide it /w your_stake (so it cancels out) and multiply it /w 73 and some decay value (~80% is a good candidate based on the current monetary expansion).

So finally `(f(pool_stake, pledge)-c)(1-m)*73*0.8)/pool_stake`, which cannot have that curve on the domain of `{0<=x<=0.002}`, mroe preciselly I meant: It can have that curve but as your stake and pledge is fixed it cannot follow that curve as it sticks at some x, so no that pattern should be seen.

Though, for operator reward it can have that pattern what we can see in your table.

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@Cardano-Foundation any idea when the official reward calculator will function properly?