Delegating Pool

Hi there, Im new to all this and in my sixties so gonna take me a while to try to get to grips with everything. Ive read about its better not to be in saturated pools, and sometimes its better to go in smaller pools, at the end of the day most will pay roughly the same over time. Why can’t Daedalus not just automatically give you a pool to join which is low in saturation, and keep doing this till all pools are roughly the same all over? it maybe a silly question, but I do read its better if its all spread out evenly, so why can’t this happen, rather than you get to pick one? Many like me who just automatically just go to one pool that looks good but could be saturated.

The delegators should have the right to which pool they are delegating…


What would be the difference if at the end of the day all pools paying roughly the same and better for the community. Obviously you know a lot more than me regarding this, and you will have your reasons for this, which I may start to understand through time as I’m new to all this.

If all delegators thought like you … then this discussion would not take place

all pools will give delegators about same rewards, indeed not on shot therm but on long term (1year)

It is not true that all pools pay roughly the same. Instead, there is a significant cost when delegating to smaller pools which is explained here.

In short … as soon as a pool mints at least one block per epoch, the operator receives those 340 ADA. For pools with an active stake of > 1m it means, they get 6 x 340 => 2040 ADA per month even with a 0% margin. We are now in a somewhat awkward economical situation in which $2040 per month exceeds what anyone should need for running two simple nodes by far. Hardware, electricity, network, domain cost can be < $20 and if you run on an arm64 device like a RaspberryPi4 it can be even half of that.

As a consequence, it very hard to justify why an operator would want to take a margin > 0% if he/she already gets 100 x that of what is needed to run the nodes.

If you have the choice, look for a pool that does some good in the word (e.g. gives plenty to a charitable cause of your choice). There are also pools that give much/all of the profit back to their delegators.

Its a good idea to calculate the annual cost of delegating to a given pool. i.e. 73 x 340 + margin
Perhaps you find a pool with a good cost/charity ratio. The ranking in Daedalus is useless in that respect IMHO.

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Hi @dave5perth,

A couple of things to summarize and add to this discussion.

  1. smaller pools give you less rewards than big pools as long as they are not saturated. The difference can be anything between 3% (for small pools) and 5-ish% (for large non-saturated pools). So if you want highest rewards go with non-saturated big pools with low fees.
  2. some pools have a mission. Either by helping the community in some way or donate to charity for example. They might be small but you still might want to choose them because you like/support their cause and in return will get a bit less yield.
  3. if a pool is not operated properly it will miss blocks and get less or no rewards.

So it is a kind of a responsibility you as a delegator might want to bear and choose what fits you best.

U are talking about delegator rewards… in ur opinion the cost of a pool is resuming only to pay the server and electricity?

anyway… check on or and see what is the ROA for long term offered by a large pool and then compare with the ROA for a small pool


Statement 1 not reflecting the realitty

OK @Alexd1985 Please help me understand why it is not reflecting reality:

Pool with 100k Stake:

Pool with 1M Stake:

Pool with 30M Stake:

So respectively:
100k → 3.3%
1M → 4%
30M → 5,4%


Significantly due to the 340 ADA fixed minimum fees.

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Because this is not reflecting long term(1year) and it’s just an estimation…

LOL, I wanted to post the same pictures. As we can see, a delegator would take a hit of …

4.02 / 5.44 - 1 => -0.26

by choosing the 1m pool over the 30m pool. This is a significant cost, which even larger in comparison to a 64m pool.

But this is a 500 x simulation @Alexd1985 or am I wrong? I want to be wrong as a small pool operator :grinning_face_with_smiling_eyes:

Thanks for the replies, will read the highlighted advice. Maybe after a few months will get a better idea of things pan out. Originally only got interested with all the hype around bitcoin, but after looking at a few cryptos decided to go with Cardano. Thanks again for advice


You’ve chosen you crypro wisely.

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i think giving rewards back to delegators is a good idea.
we have that too where delegators receive STAYK-coins for every deposit/epoch they stay. this will be backed by our profits and they sell them back to us when that number hits a satifying amount.

untill the fixed fees can be changed its hard convincing people to join, so we bypass it this way.

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You should be able to pick your own pool. The algorithm will adjust ROA and blocks so all pools will eventually even out. It will take time and the right choices will have to be made by delegators. I am a small pool looking for more delegators. If you are unsure who to delegate to, I humbly off you to checkout My stake-pool MaximumMint (ticker AMINT). We are offering 6 percent ROA at this time, which is slightly higher than the average. We have been here since the ITN days. I have recently starting working with Cardano full time, I’m currently enrolled in the Plutus Pioneer program and would love to grow the stake-pool. We plan to develop on Cardano and help make the network strong. If you have any questions about me or what my goals are, you can DM me. Also please feel free to check out or website:
If we can build functional apps on the network, we can keep our ADA strong and growing. Support us and lets grow this network. Thank you! Cheers!

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