Practical staking and pool selection guide

There are recurring questions being asked here and in other forums about staking, so I’d like to suggest reading a very quick guide that explains the most relevant aspects of staking and pool selection. The meaning of pledge, fixed costs, margin fee, saturation, rewards and timeline.
All in one page: Practical Staking Guide (Also available in Italian).

Happy staking!


That is a nice summary. Thank you for sharing :slight_smile:

The guide fails to explain the main point - expected pool cost.
Small pool will deduct as much as 30% of the total rewards even with 0% margin.

What you say is correct in theory, but for small pools luck is so important that it can offset any reasoning about pool costs. Anyway I’ll update the guide to better explain this point. Thank you for pointing it out.

Small or big pool, in the long term the effect of luck diminishes and all you care about as a delegator is the SPO fees per minted block. Currently small pools are worse by far.
If you want to be honest with people reading your guide, it should be there in bold letters.

I’m not saying that a small pool always has more luck than a big pool, that’s not true. What I’m saying that a small pool, if it’s a lucky one, will have a better yield than a big one. The same reasoning holds for an unlucky small pool, its yield will be lower than a big pool.
I’m not used to hiding facts, if you checkout my post history here and on other Cardano forums, I’ve always tried to rectify the statements of some SPOs claiming that small pools gave better rewards than big ones.
As I said, I will update the guide.

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