Stake Pool Official Guide

Staking & Delegation Stake Delegation
1

At this moment can someone give me the Official guide to setup a stakepool? There are too many source and guide. I’m little bit confuse. Are there any official guide how to install stakepool? with separate relay and BP node?
Second, what is the minimum suggestion for pledge value? (in ADA) for example 50k? 100k? 1m? and is that true that the lower the pledge the longer you can produce the block therefore the lower the reward.
Please adivse.
Thanks

2

I’ll take a stab at the pledge question.
There are 3 ways in how pledge comes into play. Assuming you have 2 pools with the same total delegated amount and same pool performance then:

  1. The higher the pledge amount the more total rewards per block minted your decelerators will earn proportional to their delegated amount. (i…e, if the pool owner pledges more, then there’s a higher ceiling you can get to in terms of rewards for everyone).
  2. How #1 comes into play depends on some variables (specifically a0 and K) that are controlled by the protocol. These variables have been set to values for launch makes pledge less of a large factor. i.e., the impact of pledge on the ceiling or how much pledge influences total return given the same total delegation is minimal (unless you have pledge over 10MM) which is unlikely in most cases.
  3. Finally, at least initially, higher amounts of pledge could make your pool more desirable to people because you’re showing more “skin in the game”.

With that said, only the total amount of delegated stake (that includes the pledge as pledge is also delegated) for the pool affects the total number of blocks a pool gets to mint. Hope this helps.

  • CPX
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3

Thanks for your answer, Can I conclude that the pledge come as third priority in term of the protocol give the pool rights to make block.
So the first priority is the delegate amount and pool performance.
I know that pledge also come into play, but that is probably as 3rd priority. Am I correct?

4

The only factor that determines probability of any stakepool receiving a block to mint is the total amount of ADA delegated to that pool. There is nothing else that comes into play here. Just the total delegated amount. The pledge amount counts towards that total.
So if you pledge 100K and others delegate 500K to your pool then your total delegated stake is 600K and that is used to determine your probability of receiving a block to mint. Whether your pool is up and operational at the time to mint that block and does it successfully ultimately determines your pool’s performance.

The pledge amount does a few things as detailed in my earlier response:
1 - Increases the max reward for any given block produced by the pool (given the current parameters of the protocol, this “increase” is very minimal so you could say the effect here is almost nil (but this can always change in the future)
2 - Helps prevent Sybil attacks (not part of the discussion here)
3 - Acts as part of the total delegated stake for your pool.
4 - You could say it may also act as a means to attract people to your pool if your stake is high.

CPX

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