# PCP\_K-Parameter\_EarnCoinPool **URL:** \ **Category:** Parameter Change Proposals (PCP)\ **Tags:** pcp\ **Created:** [9 October 2023 14:53 UTC](https://forum.cardano.org/t/pcp-k-parameter-earncoinpool/122701 "2023-10-09T14:53:44Z")\ **Posts on this page:** 1\ **Showing post:** 98
**Author:** ![earncoinpool](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/earncoinpool/32/57287_2.png) [@earncoinpool](https://forum.cardano.org/u/earncoinpool)\ **Post date:** [15 May 2024 13:29 UTC](https://forum.cardano.org/t/pcp-k-parameter-earncoinpool/122701/98 "2024-05-15T13:29:58Z")
# **Position to resubmit K parameter PCP:** The K parameter is ID’d as the parameter central to decentralization and as such is used to tune decentralization. Cardano experts are generally understood to believe that the design premise of K is sound and the research that justifies it is well-understood and correct. - [Evidence](https://medium.com/cardanorss/cardano-foundation-to-adjust-its-delegation-methodology-following-changes-to-the-k-parameter-7636ffb8e82#:~:text=The%20k-parameter%20determines%20the%20stake%20pool%20saturation%20point%2C,to%20delegate%20to%20a%20wider%20number%20of%20pools.) from Cardano Foundation - “The k-parameter plays an important factor in keeping the Cardano blockchain adequately decentralized and encourages ada holders to delegate to a wider number of pools.” - [Evidence](https://iohk.io/en/blog/posts/2022/10/27/staking-parameters-and-network-optimization-where-next-for-k-and-min-fee/) from IOG - “The system… [through increases in K] incentivizes delegators to move their stake to a pool containing less ada, in order to maintain their yield and thus encourages the decentralization of the network.” # **Why K must be addressed now:** The mainnet poll took place in epochs 412 - 415 starting on May 15, 2023. This poll was conducted 12 months ago, which is more than enough time to respond. There are no intervening steps in the way: - It was argued that the minPoolCost change decided upon ought to be executed before the PC addressed K. This occurred about 7 months ago now. - Some further justification would be needed for any further delay. - Entering self-governance phase puts added pressure on sufficient decentralization to[prevent a dictatorship or an oligarchy from emerging](https://iohk.io/en/blog/posts/2020/11/13/the-general-perspective-on-staking-in-cardano/). ![POS_concerns_Cardano_Academy](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/3X/6/e/6eb5bf7570211afad7c8ce9cfc5884b2327c1297.png) # **Years of deliberation without meaningful progress:** - SPOs have pursued actionable deliberation about Cardano’s decentralization parameters (primarily K, minPoolCost, a0) for ~3 years now– with inconclusive participation by experts and core developers– and the problem implicated in K hasn’t been agreed on yet or resolved. - If SPOs are to view this kind of conversation as tractable, the latest iteration of these discussions must produce agreement and resolution, or reasonable steps for achieving them. # **If Not, Then:** - If K is not the parameter used to fine tune decentralization, then what parameter is? - If K is not central to decentralization, then why does the K parameter exist? # **Arguments for and against increasing K should be addressed as valid or not:** Many reasons have been given to raise K and not to raise K. The parameter committee should layout which arguments that they find to be valid and which are not, as well as why. The committee should also describe the evidence it used to come to their conclusions on the arguments. The committee should also explain which of these reasons it used to come to its recommendation. # **Original PCP arguments for raising K:** Please refer to the original PCP for[Community Support](https://forum.cardano.org/t/pcp-k-parameter-earncoinpool/122701#community-support-2),[what is the K-parameter](https://forum.cardano.org/t/pcp-k-parameter-earncoinpool/122701#so-what-is-the-k-parameter-3),[Why is it important to move K up](https://forum.cardano.org/t/pcp-k-parameter-earncoinpool/122701#why-is-it-important-to-move-k-up-5) and[ Is it safe to move K to 1,000 and why moving in one big move is recommended by IOG ](https://forum.cardano.org/t/pcp-k-parameter-earncoinpool/122701#why-is-it-important-to-move-k-up-5) # **Summary of Arguments against raising K and why we don’t think they are a valid reason to not increase K:** - **Argument:** Doubling K will double the necessary infrastructure costs of the network. - **Argument:** Increasing K will do more damage to SSPOs near saturation than to MPOs - **Argument:** Existing SSPOs near saturation may choose to become MPOs - **Argument:** The smaller SSPOs who are the only SPO group to benefit from the increase are, on average, less likely to be successful long term than the SSPOs currently near saturation. - **Argument:** Disrupting delegation needs a stronger justification ![image](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/3X/d/1/d109c8f7f2b3b5c88825db9c8b6a9c5e7b6fe29f.png) source:[https://cardanofoundation.org/blog/entering-voltaire-poll-experiment-live-on-mainnet](https://cardanofoundation.org/blog/entering-voltaire-poll-experiment-live-on-mainnet) **Footnote:** Thank you to [Chris from Pond Pool](https://twitter.com/HoneypotLambda) and [Ryan (Cerkoryn)](https://twitter.com/Cerkoryn) for reviewing this supplement and providing feedback. **A special thank you to [Matthew Capps](https://twitter.com/cryptstitution).** Matthew was a helpful sounding board in refining the conversation to key points to get this PCP resubmitted. _Thank you!_ --- _[View the full topic](https://forum.cardano.org/t/pcp-k-parameter-earncoinpool/122701)._