eToro Pool - Oversaturated

The ETOR1 Pool is defined as a private pool (100% margin).
It generates approx 190 Blocks per Epoch on average with an active stake of 244M which is way over the saturation point of 63M.

My understanding is that rewards should not increase if you are above 63M (with k=500).
Other pools with 63M Stake are generating <50 Blocks per Epoch.

So my question is now: Does saturation also impact the number of blocks being generated or is it only impacting the rewards formula when calculating the rewards.

In my opinion this pool is generated blocks which therefore no other pool can mint without getting rewards for it.

Am I missing something in my interpretation?

Saturation does not impact the number of block allocated, but cap the rewards. TL;DR : This pool is an economic non-sense.

2 Likes

They could split the stake in 4 pools, mint the same blocks overall and get full rewards for those. eTORO is loosing about 9M ADA per year in rewards keeping that pool running as is.

So maybe I’ve seen it the wrong way.
When they would split it they would do the same amout of blocks but 4x rewards.
So I should be happy that they are preserving more ADA left in the treasury :slight_smile: