I am interested in delegating ADA long term. I have been reading guidance that it is critical to select a pool which is not saturated. Does this mean delegating requires active management in the long term say 3-5-10 years? Will entering a pool that becomes saturated eventually desaturate?
I have also read that in the long run ROA averages to about equal for most pools. Do I need to worry about the pool becoming saturated if I plan to save for years?
Totally depends on the pool you are choosing. They might take part in some hyped event one day and become saturated due to that, but then also desaturate again, when people move to other pools for new hyped ISPOs (or just because they don’t want to be in a saturated pool).
The losses due to saturation are not that high, anyway, as long as the pool is not oversaturated multiple times. It just means that the pool does not get additional blocks, but has to divide the rewards for the blocks it gets among more stake.
You should look after your wallet from time to time, anyway. Pools may go out of business and you won’t actively get notified about it.
Unfortunately that’s not true at the moment. Small pools (up to a few million ADA) have a significantly lower ROA than larger pools, not because the produced blocks vary more (sometimes none in an epoch, sometimes several), but because for such a low number of blocks, more of the rewards goes into the fixed rewards for the pool and not to the delegators.
There are a lot of discussions about changing these parameters and that will probably happen in due time, but it is the case now.
Thanks. Gonna dive in now.