How to survive as small pool operator in this cut throat environment?

As a small pool operator, the struggle is real to keep your servers running every months because you spend $$ and you don’t get rewarded. As a believer in Cardano mission, I think sometimes that’s not enough we all need support to get started if and only if those big pools were not greedy they would delegate small of their ADA into smaller pools jut to get them started…
As an operator of FasoPool

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Indeed, here my thoughts on the current dilemma. ASTOR runs non-profit and is still economically viable, perhaps because of it.

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We are waiting for multi delegation and k increase to 1000; these updates should help us

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Hope you are right Buddy

The only way to get a pool to the point of financial self-sustainability is to either invest lots of your own money or attract stake = actively promote the pool. If I wanted to delegate to your pool, I wouldn’t even know the name or ticker.

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Thanks
I will add my pool name

Yeah, it’s rough out there. There’s a ton of pools and as a former newbie, it’s hard to know which ones to choose.

The BRO pool is newish and struggling to get off the ground. I’m really just embarking on my marketing materials, but reaching the people that are just learning how to stake is difficult. And who wants to join a pool that has yet to mint a block… no matter how good the nodes are.

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You are right and I hope when they change the K parameters it will help all of us

Do we have any idea what the timing for these are ? Desperately needed.

Nope, no dates for the moment.

Wish I’d submitted this as a question to Lex Friedman then!

Maybe all the small stake pool operators here should delegate to one another? I’m a small SPO myself and have been struggling to get any rewards.

That wouldn’t make any difference imo. If I delegate my X Ada to you and you delegate the same amount of your Ada to me, we have achieved nothing.

Me again.

I’m getting increasingly concerned now that Cardano staking is turning into a playground for exchanges and well known youtubers. I tried to ask CH about this on his recent AMA but my repeated questions must have gotten ignored in the deluge of other questions.

Here is what I’m seeing:

  1. Exchanges like Binance able to offer 8%+ ROA of you lock it up with them. Had to compete with that.

  2. Famous youtubers opening up multiple pools

  3. Other famous youtubers realizing this is a sweet gig and opening up their own pools

  4. The research someone posted that shows pools with less than 10m ADA do give delegators lower ROA

  5. The fact that no one knows what the plans are for the parameters change and when it will happen. I don’t see how a higher pledge for example would solve this. Not sure if a lower saturation would solve this either

Based on all of the above, if I play it out in my head, I’d expect small SPOs to get squeezed out in the long run and the only new SPOs to be the ones created by existing Multi pool conglomerates.

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Let’s be honest even if they change the K parameters, it will always help those multiple pools operators. If you can 3 pools I don’t see you can’t open 4 or 6. This is gig for most people that they should at least support small pools…just saying.

This is gig for most people that they should at least support small pools

Cost per block matters. A small pool that on average makes (just) one block per epoch will have a cost of 340 / 740 => 46%. This is a significant cost to the delegator that needs to be compensated by such a pool in one way or the other. To the delegator, it is “effective cost per block” that matters i.e. after potential extra payouts.

If you can 3 pools I don’t see you can’t open 4 or 6

Binance has 63 pools, eToro 10. They can offer a much higher ROA than any other community pool. This is because they stake ADA that they control but not own.

A change of k seems like a minor tweak, with this being a real issue because it undermines any honest and hard working community effort. I look forward to the upcoming update to the incentive model, especially how it addresses the multiple pool owner identity issue.