[Question] Running a node while joining a staking pool?

[vantuz-subhuman]

@Jesse_Gazelle_Glass

I’m sorry, I may not have the correct terminology down nor the specifics. This level of technicality is outside my level of expertise, but I am doing my best to understand.

Absolutely no problem whatsoever, this is exactly what forum is for Just wanted to make it clear in my answer that I am not sure that I understand the question completely

@Jesse_Gazelle_Glass

Here is the scenario that I was trying to get at. I do not hold a significant amount of ADA compared to staking pool leaders. However I do have an extra computer that I can have online 24/7/365. I did not know if there was incentive for me to run my computer 24/7

Great question! So, here’s how it works:

1. Anyone who runs a full-node - will get the right to create as many blocks as much relative stake he has. So whether it’s you or a stake-pool operator who runs a node - there must be a relatively big stake for this node to be able to make any blocks.

2. You do not have to have a significant stake to participate in a pool. This is (basically) exactly what pool is for - each separate delegate might not have a big stake to be able to run its own node without losing money on its support, but they “pool it together” and “hire” (by delegating) a person who will run a node for them. In return for this service stake-pool operator takes a percentage of all profits.

3. Stake-pool operator does not have to have a big personal stake. Basically anyone may become a pool operator by running a node and having a minimal amount of coins required to issue a “pool registration transaction”. But his node will be selected based on all the coins that people delegate to his pool. The main requirements for a pool-operator is to have a good servers and to be able to run and support them properly. This is basically what he “sells” to delegates in return for their money.

4. A full-node that is running without a stake significant enough for it to win slots (right to create blocks) is basically performs a function of a “relay node”. Relay nodes do not create blocks - but they provide additional “connectivity” and distribution to the system. Because they connect to other full-nodes and participate in data-exchange and validation.

So if you’re gonna run your own full node, but will not have enough stake to make blocks - you will be a “relay node”, and as far as I know there’s no direct monetary incentive for those nodes. Pools are expected to run their own relay nodes, and services that use network API (like exchanges) might run those to have more “direct” and reliable connection to the network. Or people may run those just as a favour to the network But basically those are running at a loos.

@Jesse_Gazelle_Glass

But the next question, is there information out there to say if it would be better to run an individual node or to join a staking pool depending on the amount that I plan on staking.

Not directly, but we may perform some simple calculations to estimate a required minimal viable stake:

1. Rewards will be payed out to nodes once in epoch (5 days, or 21600 slots\blocks).
2. A node needs 1/21600 = 0.0046% of a total stake in order to win on average 1 slot each epoch
3. If we assume a total stake of 10 billion ADA (about 30% of total supply) - then 0.0046% of this would be 460’000 ADA.
4. Winning 1 slot an epoch would bring a node something around 350 ADA (once each 5 days)

From this - you can try to adjust some parameters to see how result changes accordingly. For example:

1. Having a half of example stake (230’000) would give you accordingly on average - ~350 ADA once per 10 days.

2. Having a 10th of this stake (46’000) would give you ~350 ADA each 50 days.

3. Also, if the total stake ends up to be a 5 billion instead of 10 - then for the same stake reward would change to ~700 ADA each 5 days

4. But also if the total stake ends up to be 20 billion instead of 10 - then reward for the same stake would be ~175 ADA

So having these calculations you may estimate how your stake would correspond to different possible values of the total stake and what possible rewards you could get on average in a month or a year.