Below is a snapshot from https://pooltool.io/
I haven’t been paying much attention to this data on Rewards until I noticed it unexpectedly. For those with financial experience the implications are obvious from an investment point of view. But here is my opinion as a firm Cardano project believer:
- After just over 2-months, as at 02/22/2020 for the ITN-1.0, a Reward totalling ADA 188,239,006 ($11,021,393.80 for ADA = $0.05855) has been distributed to Stakers & Pool Operators.
For those who have been believers in the Cardano project, this payout will escalate in value exponential as the price of Cardano goes up. Example:
If ADA = $1 this will convert the Rewards to $188,239,006. Given the massive crypto impacting financial infrastructure that Cardano & Emurgo are building, this valuation is most likely to be exceeded easily by end-of 2020 in the worst case scenario as a result of unexpected delays in delivery of the last phases.
- There is yet a great opportunity for those who missed out on the current ITN-1.0. When the next snap-shot is taken for the ITN 2.0, I believe there will be a very significant increase in additional Stakers and Pool Operators who are currently, chomping on the bit, having missed out on easy money because of skepticism, or seeing Cardano as a competitor to their project or just plain ignorance about Cardano. I am sure, even some of those who have been rubbishing the Cardano project, but are now envious of having missed out, have been quietly accumulating ADA waiting for ITN 2.0. You don’t have to love Charles H. or Cardano, it is easy and secure money creation for the taking or Staking…come one come all!
Holding Bitcoin, Ethereum, XRP, BCH, BSV, LTC, etc. will not give you this guaranteed free money in perpetuity, unless they introduce Staking or similar rewards model. That is why, I believe, when this goes to Main-net, it will explode.
- Given that one of the core technologies within Cardano staking/ Pool Operations is to prevent the concentration of control by a few players, and Cardano is so “dirt” cheap compared to say, Tezos ($3.41 as at 02/22/2020) which does not have anything as sophisticated as the Cardano infrustructure in its delivery plans for 2020. So small operators and small holders of ADA will be guaranteed to earn an attractive return, much higher than Interest rates and even some major stocks. Especially, when you have a daily or weekly income for each Epoch as well as the movements in the price. The small operators won’t be smashed by large players coming into the Pool Operations, like has happened with Bitcoin mining.
The attraction to participate in Staking will be irresistible for anyone who has been struggling to survive the Crypto - Climate confusion with large swings which are likely to continue as we reach closer to the Bitcoin halving expected in May 2020. It seems so much safer to have a stake in Cardano and ride the wave as the crypto market rises, but also earn staking rewards every day whose values will also raise with the market. Double investment reward whammy! Once the Bitcoin halving is over and its impact has passed, ADA stakers will still be earning a steady free flow of income at virtually no risk!
Hope to get some good feedback…
Sorry to rain on your parade but rewards as a percentage of stake are planned to diminish, eventually to zero, at which point returns will be from transaction fees only. Many people are expecting a big drop already at mainnet launch.
Thank you for this post as it is important to have greed work in a good way and to get outside of our community involved in Cardano. And yes returns are likely somewhat lover on main net ITN I agree with what others say. However it will depend on many factors one of them is how many are actively participating in delegation. I think we will see something like 60-80% and rest is idle on exchanges until staking as a service kicks in and even then it will probably never reach 100%. I dont expect a massive reduction in rewards come main net but perhaps a slight adjustment but I emphasize that is my own personal opinion. I agree with you the returns are great overall and even more so if you expect price of ADA will increase. This is also why I am encouraging pool operators to share some of the profits back into the community as honestly thats a win win if we can help improve infrastructure and smart contract capabilities we will also likely with increased utility also have increase of value of the underlying assets thats just fundamental investing 101 knowledge (and no not financial advice do your own research).
You must be in the wrong parade, make sure you have a good umbrella. However, in the Cardano eco-system it is shining brightly and the parade is just getting ready as the relevant participants and activities are getting organised.
Let me explain…If I understand it correctly, the very core of the Cardano eco-system will be supported by an incentivised main-net rewards systems to encourage participation by investors through staking rewards, as well as Pool Operators through payments for supporting the decentralised network. This is the very reason for the novel introduction of an Incentivised Testnet, as an industry first. The sources of the funds for the rewards will be the fees charged for using Cardano eco-system for e-commerce of all types e.g., Consumer to Consumer, Business to Consumer, Business to Business , Consumer to Govt, Business to Govt, and Govt to Govt.
It is also understood that the main-net will likely give lower rewards with estimates of between 4% - 12%, if I recollect correctly…definitely not zero as you suggest. Otherwise, why would anyone want to buy ADA if it is on the same footing as other cryptos, unless they love the Project…which I most definitely do. However, in the real world of investment options, it would be a hard sell against established cryptos likes Bitcoin and Ethereum, until there is mass adoption, Cardano eco-system is proven to be a much superior quality for industrial and Governments use.
Nope. Over the next 10 years, rewards will consist of both transaction fees and reserve coins.
“Many people are expecting a big drop already at mainnet launch”. Okey… but if you base your comments on the expectations of others, you will end up speaking on the basis of assumptions of others, that may not be the most appropriate opinions.
Is there definitely going to be a second snapshot?
Charles mentioned in one of his YT videos (I belive from January) they might do another snapshot but it wasn’t a promise and even said that mostly like there won’t be one. If anyone has any other information, please correct me.
Regarding rewards, as I recall, it was mentioned (Charles again) that they target them somewhere between 2-5% for the main net. For the testnet it was said they would be up to 12%. But obviously they have changed their mind - probably based on the poll that they gave to pool operators before the ITN started.
I said “eventually”. The supply is not infinite! When it’s gone, stakers will get (a portion of) transaction fees only.
Duly acknowledged, my apologies.
I agree with @RobJF that, rewards are most lucrative in the ITN. Yes, Cardano has reserved ADA to sustain the network for about 7 years or less. However, Cardano rewards will not be as lucrative in mainet as they are currently in the ITN. I, D360 Pool operator, expect reward to shrink with the launch of mainet. However, I also agree with @Stevod that ADA will significantly appreciate in price. Hence, it might still be very profitable to own and delegate ADA to stake pools.
I’ve been averaging 12%+ for testnet. People in supersaturated pools are probably doing much less. I am in the pool JSCS who has given me up to 25% per EPOCH. Testnet has been very generous to me. Thank you IOHK!
Nice to hear that. For some it is definitely better to delegate than run a pool