Does anyone know if the K parameter will still be increased to 1,000 sometime in 2021? Or will this be omitted? I couldn’t find an answer to this on Google and the like, nor on this forum, but I’m sure someone here knows the answer. Thank you in advance for your feedback.
It is in plan but no dates
At the end of last year, there was a mention of March 2021, but that has obviously been skipped. Thanks for the confirmation!
AFAIK it is planned together with changing a0 and changing the influence of pledge into a function instead of a fixed value (a0).
But take it with a bit of salt. Still expecting that the situation for smaller pools will improve to some degree, but it might become tougher for pools with high pledge leverage.
Will K parameters to 1000 help smaller pool like mine?
Just say they decide to change the K parameters to 1000, bigger pool will go and spin another new pool with different name and keep going…For me nothing will change how the current game is played. If every pool has the same change to mint a block for me will help a lot
I am affraid this will not happen.
That was actually the major reason why the change did not happen. After increasing k to 500 saturated pools just did a split and that was it.
That’s also the reason to take a different approach next time with changing several parameters.
That’s also not the intention. The basic setup of PoS is, that the more stake you have the higher the chances to receive a reward.
But with pools in between (the stake holders and the network), an optimal solution is to even out stake over pools. That’s where k comes into play. With k = 500 the optimal situation for pools would be that 500 pools share the available stake. Since we now have over 2000 pools, there’s a lot of pools left behind when it comes to delegation. And, naturally it’s the pools with less delegated stake and thus less ROA which suffer the most.
Now, as it has been mentioned, exchange pools have low pledge but high delegated stake. That’s because they need the ADA to float with their accounts and can’t afford to lock them to their pools as pledge. This is where a0 comes into play. By increasing the effect of pledge for the probability of minting blocks, exchanges will have less of an incentive to add more pools, because of lower returns.
Agreed but with staking with kraken is you get an instant rewards every week and you don’t need to wait for 15 to 20 days. This is why for news delegator rather stake with because they don’t care about supporting pool just rewards…3 months in and no delegator so far but I’m planning to stop soon
Ah - you did not read the fine print regarding staking with kraken:
kraken can change rewards on their own will - even reduce it to 0. At any time. There’s also no guarantee, that you’ll get the estimated (!) APY. kraken does not disclose where the money comes from - maybe from swapping on other chains.
When staking with a Cardano pool, rewards are only delayed - you’ll get your rewards for your delegation for couple of epochs after you’ve withdrawn your ADA. APY over a year is defined and therefore predictable.
And, then, there’s exchanges that got hacked or went bankrupt or got into some legal troubles. In all that cases your money may be lost. Is is really worth to be a bit impatient because a couple of days of delay.
But we are drifting away from the original topic!
It is not how a0 works. Probability to have a block assigned is proportionate to pool’s stake. a0 affects only the pool’s rewards.
See this recent tweet from IOHK:
Most seem to think that a change to k=1000 will not profit small pools. I think i will to a certain degree because delegators are forced to take action. At least a portion of them will re-evaluate their delegation choice which re-distributes at least parts of the total stake.
Multidelegation before K=1000
Thank you for sharing! I clearly seem to have missed that it was clearly stated …
I want to know if the rewards will still be the same with multidelegation?
depends if the pools to which u will delegate will create blocks or not… if u will delegate to pools which are minting blocks frecvently then yes, the rewards on long term will be the same (on short term can be different)… but if u will want to support a small pool then there is a chance to receive less rewards
Do we have any idea wether an increased K factor (and increased ADA value) will also mean a decreased fixed cost?
The fixed cost change is in my opinion much more important because it makes small pools very unattractive. But i assume they will review and change all parameters together.