I’d like to share with you the calculator that I created for working out expected staking rewards of stake pools and how these are affected if pool and network parameters are changed. This work branched out from a topic with @brouwerQ where we delved into the reward formula
What does the calculator do?:
- shows the expected annual return of a stake pool for the operator and the delegators
- shows the distribution of these returns using a Monte Carlo simulation, this is particularly important for smaller pools where the range of rewards can be much higher or lower than expected due to luck
- comparison between pools
- tweak the monetary policy parameters, pool parameters and reward parameters and see how the expected rewards change
What questions does it help to answer for Pool Operators?
- Is it worth running a new stake pool if pledge x and get y from delegators?
- what is the expected return of a pool and how much lower/higher can it be due to luck alone?
- from a reward point of view is it better to have your ada as a pledge or a stake?
- how does my pool compare to another pool x?
- how many blocks can I expect to mint in a year?
- how much ada can I expect to receive per minted block?
- I have not minted any blocks in the last x epochs, is it normal for my pool?
- if the reward parameters x is changed how will it affect by pool?
- can you show me how the Cardano monetary policy and reward formula work?
What questions does it help to answer for Delegators?
- what is the expected return of a pool that I am delegating to and how much lower/higher can it be due to luck alone?
- I am thinking of moving my stake to another pool, will I get a better return? Will this return be more stable?
- the pool to which I have delegated has not minted any blocks, how many blocks is it expected to mint?
- I want to compare the expected returns from across 5 different pools, how do I do it?
- do pools with a small stake generate a higher return compared to pools with a large stake?
Disclaimer: this is a prototype for educational purposes only, I am not advocating that you delegate to any particular pool and be sure to do your own research
Link to the calculator:
If you know the pool id that you want to analyze then you can add it at the of the URL like this:
You might need to refresh the page once for it to sync with the blockchain
Would be great to hear what you think