Pledge Penalties

If you pledge a certain amount lets say 100k ADA and you want to take it out to sell at the peak of a bull run to take profit, if you do this and are not meeting the pledge criteria anymore, does this mean that the staking pool can not mint blocks anymore?

What penalty does occur?

If pledging simply affects the amount of reward you get, will not meeting the pledge simply give you slightly less rewards?

For example lets say you registered a stake pool with some settings like this (100k ada pledge):

cardano-cli stake-pool registration-certificate \
--cold-verification-key-file cold.vkey \
--vrf-verification-key-file vrf.vkey \
--pool-pledge 100000000000 \
--pool-reward-account-verification-key-file stake.vkey \
--pool-owner-stake-verification-key-file stake.vkey \
--pool-owner-stake-verification-key-file owner2_stake.vkey \
--mainnet \
--pool-relay-ipv4 <RELAY NODE PUBLIC IP> \
--pool-relay-port <RELAY NODE PORT> \
--single-host-pool-relay STRING \
--metadata-url \
--metadata-hash <POOL METADATA HASH> \
--out-file pool-registration.cert

If I move funds from my staking address that was used for pledging as an owner what negative effect will this have? Most importantly does it nullify my chance of winning any blocks from now on?

If you don’t meet the pledge, you and your delegators won’t get any rewards.

What would you recommend as a way to handle this nicely, should I send an updated request to have a lower pledge for the pool and then remove funds? What would this command look like?

Yes, you can lower your pledge, via submitting a new pool registration cert. It takes 2 epochs to take effect, so it isn’t something you want to do all of a sudden.

But you can pledge say 10,000 and have 100,000 in your wallet and move it around, as long as it doesn’t go below 100,000. It all counts towards the amount delegated. The pledge amount has little effect at the moment, but it does show delegators that you have “skin in the game”.

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