Silly question - no 340 ADA per epoch to pools that mint 0 blocks, correct?

Basically what the subject says - this was originally which caused my ambition to be an SPO to drop to zero… when it was a technical challenge, I got fired up, provisioned servers and started documenting best-practices for securing Linux servers for the SPO community (here) UNTIL I came to understand that there is 0 compensation unless you mint blocks.

I have about $100k USD in ADA which is now nothing when it comes to a pledge for a stake pool - so as I currently understand things, I would need to become a marketing machine to drum up delegation to > 2 million ADA until things started to make sense for my pool.

If that is all correct so far, then I’m good to go…

What confused me was going through and re-reading some of the documentation around SPO operation - some of the wording around the 340 ADA ‘fee’ was soft, indicating that the network would convey that for a successful stakepool… but that doesn’t make sense because than any clever person would just fire up 100x SP’s and be swimming in it.

Either way, just wanted to DOUBLE check my understanding here.

As an aside, whoever developed this calculator is incredible:

The only thing I couldn’t figure out how to do was zero-out the delegator contribution to get a modeling of what I’m thinking will happen to me (and most SPOs now that there are 2300 of them).

Thanks for the insight all!

This is correct. No blocks zero rewards but still all the costs.

I don’t agree. A marketing machine is just a machine telling the public what your added value is. Marketing without added value is just noise. If your added value is high enough you will get delegators. This added value comes in helping the community or maybe just having a high pledge and reliable pool operation (good people with good stuff).

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I’m explaining thiss “issue” in my article Cardano Stakepool Operator Considerations

Agree that you need to get over 3-5m before your pool gets attractive. Not possible without any kind of USP. Be aware that nobody is waiting for a new pool :wink:


You summed it up really well :slight_smile:

Thank you for clarifying - my brain appreciates it!

I certainly understand the spirit of what you are saying - we can both agree that the barrier to entry 1 yr ago and now are an order of magnitude higher… is that fair to say?

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What do you mean with fair?

For sure it was easier to start a year ago. There was just a fraction of pools and bying your pledge was much cheaper than now.

It is easy to look at a successful project like cardano, with 4 year of hard work already gone into it and with corresponding much higher prices, and then to say “it is no longer fair” for new comers.
This argument neglects the risks the early adopters took not knowing if the project would be a succes when they joined and invested (like myself) in 2018.

Taking risks should be rewarded and that is actually what IS making this fair in my opinion. The lower the risk, the higher the price.

That sort of thinking is fine and dandy for preserving one’s ego but does nothing for the future of Cardano. I too invested back in 2017, but I don’t think this makes me a risk taker or pioneer, just interested and inclined. I think a more inclusive mindset is ideal here if we want this to grow.