How do the stake pool fees affect the rewards?

We have already talked in other infoblocks about the source of the rewards...

We have already talked in other infoblocks about the source of the rewards...

we have also explained how the delegation cycle occurs until the payment of the rewards.

we have also explained how the delegation cycle occurs until the payment of the rewards.

But when a delegator is looking for a stake pool,

We have already talked in other infoblocks about the source of the rewards...

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But when a delegator is looking for a stake pool,

It is likely that the first relevant factor for choice is related to the financial return

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It is likely that the first relevant factor for choice is related to the financial return

But when a delegator is looking for a stake pool,

In the Proof of Stake protocol, the Ouroboros in the Cardano network...

In the Proof of Stake protocol, the Ouroboros in the Cardano network...

Unlike other blockchains that pay a fixed amount per block...

10%

2%

5%

Unlike other blockchains that pay a fixed amount per block...

In the Proof of Stake protocol, the Ouroboros in the Cardano network...

REWARDS

10%

2%

5%

Rewards are distributed to the stake pools in proportion to how much stake they control in the network

but the details of the 
rewards calculation will be addressed in another infoblock
There is also a performance factor that must be taken into account

AMOUNT OF ADA IN STAKE

REWARDS

What we want to highlight here is the proportionality of the reward according to the amount of ADA

Delegator 1

Delegator 2

Delegator n

Delegators' reward 

Delegators' reward 

Delegator 1

Delegator 2

Delegator n

a stake pool will receive proportionally its stake in the network

 and distribute part of these rewards to delegators 

The protocol automatically distributes the rewards and operators are not able to act directly in this process

Delegators' reward

Delegator 1

Delegator 2

Delegator n

The protocol automatically distributes the rewards and operators are not able to act directly in this process

a stake pool will receive proportionally its stake in the network

 and distribute part of these rewards to delegators 

fixed fee

variable margin

 There are two parameters that affect the rewards of the delegators

FIXED FEE

VARIABLE MARGIN

 The fixed fee, also called cost per epoch, is defined in ADA and charged from this stake pool rewards pot

 340 ADA

Currently, the protocol establishes a minimum of
 as a way to discourage operators from targeting a zero cost of maintaining their infrastructure and compromising network stability​
 as a way to discourage operators from targeting a zero cost of maintaining their infrastructure and compromising network stability​

 340 ADA

Currently, the protocol establishes a minimum of

FIXED FEE

the operator receives at least the minimum to support the costs
 as a way to discourage operators from targeting a zero cost of maintaining their infrastructure and compromising network stability​

FIXED FEE

variable margin

FIXED FEE

It is calculated from the amount remaining in this fictitious reward pot, a value defined as a %

The variable margin is then collected from the remaining amount of the pot after the fixed fee is deducted

variable margin

fixed fee

The variable margin is then collected from the remaining amount of the pot after the fixed fee is deducted

It is calculated from the amount remaining in this fictitious reward pot, a value defined as a %

There is no minimum established by the protocol

100% margin represents a private stake pool

DELEGATORS' REWARDS

variable margin

fixed fee

Once the fees have been charged, the amount in the pot is finally divided between the delegators

variable margin

fixed fee

Delegators' rewards

Once the fees have been charged, the amount in the pot is finally divided between the delegators

VARIABLE MARGIN

FIXED FEE

DELEGATORS' REWARDS

DelegaTor 1

DelegaTor 2

DelegaTor n

 in proportion to each delegator's stake

DelegaTor 2

DelegaTor n

if a single delegator holds 10% of the amount of ADA delegated to the pool

DelegaTor 1

will receive 10% of the remaining reward pot

VARIABLE MARGIN

FIXED FEE

DELEGATORS' REWARDS

 in proportion to each delegator's stake

DelegaTor 2

DelegaTor n

if a single delegator holds 10% of the amount of ADA delegated to the pool

DelegaTor 1

will receive 10% of the remaining reward pot

VARIABLE MARGIN

FIXED FEE

DELEGATORS' REWARDS

 in proportion to each delegator's stake

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