where is the decentralization place ?
I’m operator of FFP and something bugging me since I start to create my own pool
I’m ADA holder for over two years and I love it , love perspective and purpose of this project so I make a decision to help this project (very tiny , small help) I took my ada from binance , staked to other pools and then added to my own pool and as you know there’s no chance for pools like me to mint a block but helping the project was my one and only priority .
But now I see this
Over 30 pools that belongs to binance with more than 65 m live stake and Pledge almost 2 ada
And this get me thinking did I made a mistake? where the hell is decentralization place ?
big corporate still got control for everything and in return get big rewards and me and other pool operators who dream for a better life are just watching , cause we got no power to change this game
and in the end its not better to go back to binance get my daily permanent profit and don’t bother for anything else cause apparently decentralization could not happen this way
You can see that single pool operators are still the largest group with ~21.5% while Binance has ~12%.
I agree that this is ANTI-Cardano behavior in favor of profit. However, if you look at their returns you will see that people are getting on average 20% less in rewards. Instead of average of 5% to 6% they are getting 4% to 5%.
Bottom line is that everyone can decide where they want their ADA to be staked. We as a community need to educate those with ADA to stake how they are getting ripped off by large entities.
Also, K parameter can be moved causing max saturation to drop. Eventually once we get to larger number of transaction they will move K to 1000/2000/… or more, causing all people that delegated to these stake pools to either move to other stake pools or loose half of their returns. In order for Binance to maintain the same level of staked ADA they would have to create another 62 pools (or more). If you would like to read more about K parameter go here: Parameters and decentralization: the way ahead - IOHK Blog
Systems are in place (such as K parameter) to make it exponentially harder for one group to cause Sybil attack and every time those systems are activated it benefits small pool operator.
Currently there are over 2500 pools, so there is no real threat to decentralization. However, best defense against Sybil attacks is well informed Cardano community. We have power to change it by spreading this information, educating and making choices that will benefit all of us, instead of falling for a default of trusting brand names.
All beginnings are hard and those that have a head start will try to assume a lead. Don’t just give in to them, stand up and fight. Call’em out. Spread this information. Make your own pool if you want. Even if you take only a few thousand ADA from them or even one block a year you are still being valuable member of Cardano community and a positive influence for decentralization.
Cardano was built for a long run. Remember this is a marathon, not a sprint. Make sure you are here for a long term and don’t let this in-and-out quick profit scams bog you down.
thanks for sharing , i agree with you but there is one or two things
i almost sure there are so many binance users who doesn’t no there is such a possibility for staking their ada , and binance easily using this ignorance for its benefit , that’s for sure ( i know personally a lot of them) .
and i wonder why this huge bug could ever been exist
just look at the PLEDGE and saturation
and beside I’m sure there are many pools like binance who use this Lack of information for their own sake
and as i said earlier i created my own pool with help of this great community and don’t wanna step back i will pay for everything from my trades( I’m full time trader) without any hesitation because i know this project will make a difference and i now at the end we will win .