Thank you for clarifying Shawnim. Sounds good. I think that could work well.
Just clarifying. It cannot completely eat up the rewards, since one block generates ~1000ADA, so max 1/3 may be used for operation cost. The rest goes to delegators (as correctly calculated in the initial post of the Thread creator)
My opinion on the topic (being a very new Pool Operator).
Currently I do not really see a chance to attract any Delegator to my fresh pool. Just any Tool out there (Daedulus, Adapools, Pooltool) is listing my pool right at the bottom because the ROS is zero and the percentual cost is inadequate compared to big pools. So there is absolutely no chance for me unless i have a very high pledge which already generates some stable rewards.
So for me it would be a good option to simple set the fees (fix and variable) to 0 for the first 3 months to reach a healthy amount of delegation. My favourite option would be having a contract to say my feeds are depending from the actual stake. Or like the austrian income tax where you have a lower tax on lower income and then step by step incresing. (like 0% for the first 1M ADA, then 1% everyting up to 3M ADA, …)
I think this would help growing the Pool initially.
The raised doubts regarding big operators destroying the market with conditions which no-one can compete with. Well I think this is already the case because they can provide the best conditions through high pledge anyways.
In the excel sheet below I calculated some Samples.
The last row outlines the % of Rewards which is hurting the ROS for small pools.
Identity solution! Reading threads a few days later, and I see this one crop up again in @Serotonin comment. Perhaps a worthy CIP? @Dubius seemed to support the proposal in principle in this comments thread How Cardano could fast-track financial inclusion in emerging economies - #17 by Asogan_Moodaly
Proposed solution: Digital IDs with biometrics (already proposed for Atala Prism under ‘Coming Soon’ on the website) for SPOs. Limit the number of pools per digital ID.
Becomes a fantastic marketing use case in terms of the big picture of Cardano roll out.