Staking and trading

[vantuz-subhuman]

@ishleh

if delegating all the stake to one pool or to split it to many pools, as it will exist the 1% to prevent the existence or formation of bigger pools, at which point begins to be more interesting to split the stake to many pools to have more odds ?
yes i understand that splitting is always bad in terms of own stake vs pool stake, but if some lets say 5 pool get a lot of hype around them and most of people delegate to them, actually won´t be interesting at all to stack with those 5 pools, right ?
I m not interested in how much ADA, but on how would work ?
I don´t know if i explained myself right

Splitting your stake to multiple pools is always a good idea.

1. Staking IS voting. Stakeholders vote for pools they trust to run the network. So by splitting your stake among 5-10 good pools - you are helping the system in general.

2. Is it just safer. If any pool gets hacked or goes rogue - you only risk a small portion of stake. NOTE! That users do NOT loose their stake if something happens to the pool. But if pool will act badly - delegates will loose profits. So diversifying stake is as rational as diversifying investments.

3. Less chance to cap any of pools you have selected. Over-capping the pool (when pools starts to have more than 1/k total stake) is suboptimal for all its investors, so splitting the stake also helps to mitigate this problem AND potentially raise the profits.

Read this comment for a detailed example explanation:

Suggestion : Bring ‘bonus reward’ system to encourage longer contribution to the pool

Totally. The other thing, tho, is that whatever happens - a single pool in Cardano cannot get more than 1% of total reward, so when a pool caps - it becomes import for them to get a proportional new stake only out of new stake in the system. Or otherwise it might cause actually an outflow of old stake. Example: There are 100 pools and a 1000 coins of total stake, so each pool contains 10 coins (exactly 1%) and the system is in equilibrium Imagine that each epoch there’s a total reward in …