Minimum Pool Fees (with a brief mention of K changes)

[Michael.Liesenfelt]

@7.4d4

What are we going to do to incentivise large lending platforms to stake their collateral Ada in a way that increases “K-effective”?

I honestly don’t know the answer to that. I’m going to have to think on it more or wait until Voltaire/Conclave.

@prometheus-pool

pledge would be less than 20% as effective as it is currently.

I’d like to cite @brouwerQ :

Stake rewards formula

Stake pool rewards are calculated with the following formula found on Pledging and Rewards — Cardano Documentation 1.0.0 documentation : [image] This formula has the consequence that the rewards are greater with a higher pledge and greater with higher pool saturation. I can understand the reasoning behind this (I think :p), but I’ve got some problems with how the rewards change from min to max reward with increasing pledge and/or pool saturation. Please let me know if there’s something wrong w…

@brouwerQ

especially that the influence of pledge only counts significantly towards very high pledge…

To me if that gradient field from 0-100% pledge and 0-100% delegation is accurate then it could benefit from revision. Clearly using this field the k-parameter is not driving real network decentralization.

How can we revise it though? Exactly what numerical value should we propose and why? We should both work on that.