I’m a 20+ year linux admin and developer. Not at all unfamiliar with crypto, but new to the vast world of crypto/PoS, and I also just started small time mining. Just been watching on sidelines for years until recently. I’m quickly realizing mining is not the best way for long term, but I like it, I’m a tech and I can do it in my garage on my own. I definitely want to work towards running my own staking pool here, I’m just not sure its worth it with a minimum stake of 500 ADA. I have many questions, but here’s a start.
The calculators I see don’t work if you put in 500. I need some minimum numbers so it makes sense to start a pool and build from there. The problem is, I’d run a google cloud server, and running this with 8G of ram is not going to be cheap. I don’t mind running on my own a few months, but it would need delegators (the money people) from what I understand. I’m not a marketing person. I run dev on web sites all the time, so that’s no issue, but being a social person and marketing my pool, that’s not me.
So I need help understanding rewards, just some low end ball park numbers here. Say I put in my 500 ADA. Then I manage to get a few delegators with say 500,000 ADA ea.
Each 5 days (about) I get a 340 ADA fee ? OR is that per year? (no way does that cover costs!)
But then there’s a block rewards with that 2x 500,000 ADA (plus my 500), which pays about 5% a year rate? Or 5% that block/epoch. (I realize that’s IF the pool wins lottery to do the work, so the pool may sit there for weeks with nothing)
Also, I know there’s a margin I can set on the pool. so maybe I have a 5% fee. Is that 5% per year? (5% / 12 then?)
Anyway, take the 1,000,500 ADA , we get a hit, and the reward is 5% of that, plus the 5% margin fee?
I wish there were a nice graphical explanation, not from a “investors” point of view. I’m not a finance person. But give me formulas and numbers, and I can calculate fine. I just need a good example from a small investment perspective, ignoring costs of my pool, which I generally know already.
All this brings me to my main thought though. Seems like in order to be profitable, you’d need many millions in ADA delegated. Why would anyone with that kind of money trust me, just some tech, to manage their pool? I do understand though, that a delegator keeps their wallet and funding so its not at risk of my pool downtime (which there will be on occasion for updates, for security). But why me? if I had $1m to stake I’d pick corporate managed pools, not one from some guy. And with out that, there not enough pay for running my pool.
Also, is there any way to see all the pools with small stake out there? Are there many of them? Whats the ratio of pools to delegators? If there’s lots of empty pools, there’s no point in me starting another.
Sorry my questions are probably confusing and all over the place, but I really appreciate any help.