Stake Pool operation without a lot of ADA

Hi i have the infrastructure and knowhow in devops/networking to run a pool. What i do not have is the know how in cardano and stake pools.

Does it make any sense to run a pool if i just pledge the minimum around 500 ADA? is there a beginners guide on running a stake pool which focuses on pledge/tokonomics/… ?

It depends. If you like to run a pool for educational/technical reasons, you don’t need any stake on testnet. On mainnet, you need 500 ADA for the pool deposit. Your pool then needs to attract delegators - it approx. needs 1m ADA to win the block lottery ones in every epoch (i.e. 1 block / 5 days). 100k will give you 1 block every 50 days and so on…

This has been explored and compared to “just delegate” to some extend in this post.

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ok well i would like to participate in the decentralization. its kind of a joke now that every pool overator which becomes saturated just launches a new pool. this is not decentralization :slight_smile:

Some (e.g. Binance) launch 63 pools :astonished:

So far, there has been little but moral reprimands. If multi-pools constitute an attack on the network, the network itself would need to defend against it IMHO. It would probably require some sort of identity linked to each pool. Has this been predicted by the game theory, or hasn’t it? Which is worse?

Anyhow, the incentive model is such that it incurs significant cost to the delegator for small pools. It works great for the rich and even greater as ADA appreciates in value. If you have 3m, your pool will make at least one block per epoch, which currently gets you 6 x 340 x $1.40 => $2856 p.m. to run two simple servers - even with a 0% margin.

A year ago there was some talk about binding the 340 fix to a realistic/actual cost of running a pool - nothing since.

From the decentralisation perspective, the network seems to be content with k=500 saturated pools, all others face an uphill battle, which you can still win of course - marketing, not technical skill is key.

I guess, we’ll see how this plays out.

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