I would like to share how a small pool operator is experiencing the current situation around SundaeSwap ISO. I don’t want to complain at all, it’s just our point of view and wondering if this is the right way to go in the future.
Crypto Colony Pool was launched in March 2021, we produced the first block a month later and to this day we have 24 blocks. The amount that a saturated pool can produce in a single epoch. From the beginning, we try to attract delegators to the opportunity to support our educational projects, in which they can also participate. Over time, we have found that people are not very interested in supporting our mission, but rather in maximizing their own profits. This is understandable and therefore our pool has set 0% margin fees, which saturated pools do not have in most cases. In addition, we distribute PIGY tokens, which can already be sold on MuesliSwap for another ADA and the latest attraction is the loyalty NFT program, where all you have to do to get NFTs is delegate to our pool. But that’s still not enough, as you don’t have regular ADA rewards for regular block production. So if you want to make the delegator stay in your pool, you have to add an extra ADA rewards. When you do this with multiple delegators, you only have funds left for the mission and pool bills. This way, day after day, delegator after delegator, you build your pool with love and try to keep up with the big players, celebrating each block as a birthday (small SPOs know that feeling).
Then comes SundaeSwap ISO with a huge promo from IOG. Your delegators gradually start asking you how to obtain Sundae tokens and whether they will receive them from us as well. I have to answer no, because there was no chance we would get into the top 30 pools. So they leave, ignoring all the bonuses they have from us. We don’t blame them. If we wouldn’t have a pool, we’d also join the queue. Thus, within a few days of announcing the launch of SundaeSwap, we have lost 57% of our stake (623K → 271K) and that is probably not the end. Within a few days, the six-month job disappeared. Large pools are again slightly larger, while small ones smaller. Is this what do you want for Cardano?
I don’t know if it was necessary to hype SundaeSwap launch so hard when launching MuesliSwap (which works great) went smoothly in peace. In addition, according to official statements, certain labor pains are expected and, as we know, the crypto community use every opportunity to hate Cardano, especially if something big doesn’t work. Anyway, we believe this whole situation will be good for something and Cardano will get a proper DEX. Looking forward to swap something sweet on SundaeSwap!
Crypto Colony Pool doesn’t end, it’s just going to be a little harder for us now. But there is no story without struggle right? I wish all small pool operators a lot of strength!