Help me understand pledge size and stake pool rewards

Hello Forum,

Still wrapping my head around stake pool setup and pledge size.

Let me give you two scenarios. Let’s say two pools work really hard at attracting delegates to their pool:

  1. The pledge is 25,000 and they are able to attract 19,975 million ADA from delegates.

  2. The pledge is 500,000 and they are able to attract 19,500 million ADA from delegates.

In both scenarios the total Ada staked is 20 million in each pool. Will both pools earn the same rewards or does the size of the pledge, where a smaller pledge, reduce rewards that are paid?

I’ve read through documentation but this is all very complicated so I’m hoping someone can give me a clear answer based on my two scenarios above.

Thank you!

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For the moment it doesn’t matter; perhaps in the future but as I know not now



Thank you for your reply @Alexd1985 and for helping me understand the nuances of rewards with regards to pledge. I believe it’s the “a” factor that could affect stake pool pledge size and rewards. I’ll have to watch this factor to see if it changes in the future.

I’m becoming incresingly frustrated with what I’m seeing with regards to SPO’s and large stake pools spinning up new pools and keeping delegates with them when they become over saturated. Cardano is proud to me the most decentralized community but I see this as a slippery slope. Small pool operators with a small stake have a much harder time attracting delegates. I get it…it takes hard work to get delegates and I’m not suggesting we stand up a pool and do nothing. But over time I see small pool operators dropping out as large pool operators with many pools take over. Why would delegates move their Cardano to a small pool in hopes they get to a size to create rewards. I’m not talking about greed here…just common business sense. Waiting a few epochs to help a small pool rise up in ADA is not that bad but how long are delegates willing to wait? More than 3-4 epochs and if no rewards are given they would most likely move to a pool that does pay them. Moreover I see as the price of ADA rises delegates will look to earn rewards much faster. Also I see that as the price of ADA rises people will begin to take profit which may further reduce the number of pools as small (and maybe some larger) pool operators drop out to cash in a little profit. This further hurts the Cardano Stake Pool community as the cost to stand up a pool becomes very costly which further reduces the number of pools and skews pools to either those who started a pool early or to those with a lot of money. Maybe I’m misunderstanding how this all works but I don’t see staking being all that fair?

Thanks for listening. :slight_smile: