Why should I NOT choose a 0% Margin Pool to stake with?

What you are not seeing and will not see until rewards are given out on epoch 215 or after is actual RoS and performance metrics of pools.

Why?
The first 2 epochs had a performance setting = to 1.
This means so long as they had a block they would earn the full value of rewards in proportion to their stake.
After epoch 212 this changed because D reduced below .8 to .78 for epoch 213 and will again to .76 in 214. With this change you will see the rewards change in relation to blocks created and it will give you more accurate data to what an epoch is supposed to look like. D reduction also means more and more blocks will be made by the SPO’s and you will have more actual data to calculate and visualize performance.

Remember this is a long road and we are just at the very start.

3 Likes

The suggestion that pools smaller than 210Mio ADA do not suffer reduced rewards, is in my opinion incorrect. Please see this topic for the explanation

Hi, please have a look at the following article (and related blog post) to better understand the concept of saturation and why not only the largest pools are at risk of occasionally seeiing there rewards capped.

2 Likes

Be aware this article is under dispute. I personally believe its conclusions to be false. Do your own research.

Agreed, but many delegators won’t see that. They will be primarily impacted by ‘0%’. It’s a great way to market a pool to future delegators who will only care about the bottom line, and there will be plenty more of those mainstream less-informed types in this ecosystem as cryptos go mainstream, particularly as the global economy remains in a state of stagnation.

Hi Rene, I’m glad you were able to attract stakers partly thanks the 0 margin. I opened a pool a few days ago with 0.9 margin but nobody got interested yet. Do you believe it would be a good start-up strategy to lower it to 0% as you did? What advice would you give me in general to attract more stakers? Thank you! Giuseppe

1 Like

this is false affirmation. I have other sources of income, I can make my pool running a full year without issues.

1 Like

Strongly disagree. The cost calculation/sustainability considerations are solely determined by the pool operator’s individual cost parameters. The operator may also set the fixed fee to a higher value.

Your generalized statement is just not correct/ not applicable.

Well, his statement is from Aug-2020 - it was likely not meant to be an eternal truth. Here my 2ct on the current pool reward dilemma.

Let’s not forget that hardware costs, servers and energy are very competitive. There are several VPS options now some can offer cheap hosting.
ADA on the other hand, appreciates in value. Having the option to cost the fees to 0 or whatever the pool operator wants would be exceptional.