I posted this thread on 4chan to no avail, so I’m re-posting it here.
I’ve been stocking up on as much ADA as my pockets will allow over the past year and change, and since last December, have also been looking into the possibility of creating and operating an ADA staking pool operation of my own. For those of you who run pools or have run them on the testnet, how have the returns been? Have they been as amazing as the ADA staking calculator makes them out to be? The reason I ask is because I’m having a very hard time believing that if I operate a pool, that I will make returns anywhere near close to what pic related says I will gain. According to their calculator, if I start my own staking pool and put up at least 150,000 ADA (the plan is to put up at least 250,000 by the time of operation), I will see an 837% ROI (equivalent of $120,340 USD at current prices). That’s assuming the pool controls at least 1% of the total stake (the total stake of what, the calculator doesn’t specify, but I’m assuming the total available supply of ADA currently on the network/in circulation). I don’t think my pool will even reach anywhere near 1% of the total supply, but it would be nice. The ROI calculated also assumes that the pool operator (me) takes in 10% of the annual rewards as my cut for operating the pool for everyone staking in it. Chances are I will take less of a cut than that to incentivize others to throw in with me (assuming I can do that).
Running costs will be upwards of around $8400 USD (at current prices, also assuming the pool controls 1% of total stake). I’m not worried about upkeep because this is a business enterprise being split 50/50 by me and a friend.
Would creating and operating an ADA staking pool be profitable in the long run? Is competing with the bigger pools and conglomerates possible on the ADA network? I really want to participate, not even for the money but moreso to be a part of keeping the ecosystem safe from centralization. Seeing Bitcoin get ransacked by China and several central powers bothered me a lot these past few years. An actually fully decentralized network like Cardano is something I’ve been patiently waiting to participate in.
Looking forward to hearing back from the community. Thanks everyone.