Small pools seem to sacrifice to save large pools

Numerous relays and BP servers are connected to achieve decentralization.
Large pools create blocks and receive compensation, but under the current structure, small pools cannot receive compensation. Shouldn’t we randomly create blocks to achieve true decentralization?

Defeats the purpose of Proof of Stake, don’t you think? You need to prove with your stake to process blocks

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This is the same problem that BTC has - majority of rewards goes to few huge farms and regular miners with one ASIC miner or few GPUs get virtually nothing, these few farms, if united would easily overpower rest of the world if they wanted to and could suppress the blocks from small miners.

There isn’t any easy solution to this. While PoS solves the “electricity wasting” issues, it doesn’t handle the redistribution of mining powers, but it at least have some better options. I’d say that Cardano is currently already much better distributed and secured in terms of mining powers than bitcoin, for example.

While it is true that us small pools are not economically viable, we do have a variety of paths to becoming viable, most of which include a lot more effort than connecting three nodes. They typically involve contributing to the development and or adoption of the technology.

Maybe the disconnect is that you are relating stake pools to miners too closely. Where miners are generating funds by virtue of their existence and contributing little to the underlying technology, stake pools are funding mechanisms for big ideas (and sometimes big personalities) that can dent the universe.

At HODLR for example, we are actively looking for ways to advance the Cardano mission with the skillsets we have on hand. We run a Testnet Pool. We have helped some other small pools with technical issues (and made some friends doing so), and I was just accepted into the Atala Prism Pioneer program, which I plan on leveraging into some concrete contributions on the software development front. We also produce enough solar RECs (Renewable Energy Credits) to offset all of our Mainnet and Testnet carbon production and some.

Long story long, if you are starting a small stakepool to make a quick buck you may be in the wrong business and should consider being a delegate. If you are doing it because you believe in the decentralized mission and want to help… WELCOME ABOARD :slight_smile:


Very well said @Benagain . Have a purpose beyond generating income. There are so much possibilities. I have been busy educating my community and now I have been approached by hedge funds to drop a bag at my pool. They clearly see it as a low risk cash flow mechanism to generate easy 5% APR while keeping their money liquid. They are not worried about the price volatility of ADA, for them it is an asset which will appreciate over long term.