My name is HausNL and I am very interested in creating my own stake pool. I actually work in IT (network engineering) and have some knowledge on creating servers, so I already have the possibility to create two VM’s and I’m sure that by following the guides available on the internet I will manage. However I do have some questions from which I cannot find the answers that easy.
Do you as a staking operator need to have a specific amount of ADA before you are allowed to run a staking pool?
My pool is not running yet, but I can imagine that as soon as it is running it will be very unknown and it might not even be found my delegators since it is low rated compared to the bigger pools that are so to say “famous and proven to be working”, what happens with the people delegating their ADA to my pool, do they still get the 5% per year, or will they have trouble getting rewards in my pool?
Same question as question 2, but then with me as a pool operator in perspective, what If my pool does not find any blocks? You will only get rewarded whenever you find a block right? What are the chances of finding blocks with a small, just starting out, staking pool like mine will be in the beginning?
Do you as a staking operator need to have a specific amount of ADA before you are allowed to run a staking pool?
To start a pool you will need 500 ADA for registration, but you will receive them back when you will retire the pool. You can start your pool with less than 10 ADA but you will not be able to create blocks - or better say… very low chances (to 0) to create blocks, but these chances can change if you will find delegators to stack to your pool (of course, low pledge = low trust)
My pool is not running yet, but I can imagine that as soon as it is running it will be very unknown and it might not even be found my delegators since it is low rated compared to the bigger pools that are so to say “famous and proven to be working”, what happens with the people delegating their ADA to my pool, do they still get the 5% per year, or will they have trouble getting rewards in my pool?
This is the hard part, finding delegators; You will need to make your pool known (posting on social media, create content on youtube, etc), to make it attractive from the delegators perspective
Same question as question 2, but then with me as a pool operator in perspective, what If my pool does not find any blocks? You will only get rewarded whenever you find a block right? What are the chances of finding blocks with a small, just starting out, staking pool like mine will be in the beginning?
no block - no rewards! regarding your chances to create a block… there are but with a low amount, chances are almost 0; you can take a look on pooltool.io or adapools org to other small pools and check the uptime and if the pools created blocks
If I’m undertstanding this correctly, the pledged amount is basically an amount of ADA that you sent to the wallet that is linked to your Stake Pool, and an additional 500 ADA is required as a “fee” that you get back whenever you diminish the pool right?
So whenever I want to stop / kill my pool because I couldn’t get enough delegators for example, I can simply send back the ADA that I used as “pledge” and also regain back my 500 ADA that I paid as the “fee”?
If you want to to discuss, im dutch too (assuming you NL refers to your nationality), recently started a pool with a buddy of mine and we’re in the same boat. we started an initiative to have a rotational system for stacking all the stake in one pool to increase its chances, then move on down a ranking list.
Its takes a long breath, but if you have easy and cheap access to hardware to setup a reliable topology, then there is no real reason not to do it. as @Alexd1985 (a very helpful guy as well) pointed out, most of your questions were answered. but feel free to return here or send a PM.
my advice is, do it here, so others that have similar questions can benefit to. sharing the edge here is what matters to smaller SPO’s (stake pool operators)
I am one of those pools with only 1k pledged. We invested all that we can afford financially, we hope the community will get behind ideas like CHARITY and TAILS so that we can make a difference in this world. If you think you have what it takes to operate a pool and have a great idea to go with it, do not let anything get in your way. People like Alexd1985 here are working hard to onboard newbies like us in his personal time. I half think that he gave my daughter a gift after we thanked him for his hard work and then also staked with his pool.
For the average pool the ROI will be 0%. I personally believe you have to go above and beyond to stand out in this diluted market. I feel if you go into this venture not thinking what you can get but who you can help, the world will be kind to you. We are not concerned if it takes us 2 or 3 years to reach a point where we return on our investment. In many businesses you can not expect a return on investment so quickly. Some people who are thinking of starting a pool should consider to just stake with one of the pools generating a return so to better make use of their money. But again if you have a desire to do something big, this is the best place to be doing it.
My husband came running across the house yelling about it to us and he said he thinks it was the guy he was nice to but he was only guessing. It actually made that man cry a little because kindness is rare in this world, someone was nice to our daughter and it’s making me tear up right now thinking about it. Thank you again because that was such a nice thing for you to do. We tried to get her to make a card and thank you but alas she is only 11 and her abilities to make a nice card are still improving each day I promise she squealed like a pig when she heard that her investment went up a lot. And the best part, her bigger sister who was not willing to invest was super jealous. Thank you from the bottom of my heart your kindness well received and we will never move that stake from your pool to show you our thanks.
I promise she squealed like a pig when she heard that her investment went up a lot. And the best part, her bigger sister who was not willing to invest was super jealous. Thank you from the bottom of my heart your kindness well received and we will never move that stake from your pool to show you our thanks.