How to choose a stake pool?

What criteria should I consider?

Basics

First of all, it is important to get to know the basic parameters. On the basis of these, you can already make an initial selection in order to find a suitable Cardano Stake Pool for yourself.

The main thing here is to be able to distinguish cleanly functioning stake pools from other stake pools.

A pool that is not online when it is supposed to write a block does not get any rewards. So it doesn’t bring much as a staker.

-> Rule: The pool should be online 99.999% of the time & communicate it that way.

A pool that is saturated (=saturated) does not get any more rewards.
Therefore, it does not bring much as a staker.

-> Rule: Saturation should be below 60%.

A pool that does not produce any blocks does not get any rewards.
So it doesn’t bring much as a staker.

-> Rule: A pool should produce at least one block every few epochs.

A pool that has too high costs leaves less rewards for the delegators. 

-> Rule: A pool should charge a maximum fixed fee of 340 ADA & a maximum margin fee of 5%.

This parameter is often underestimated or neglected. Yet it should be the decisive factor once you have found a few pools where the other parameters are correct.

To understand this parameter, one must understand that staking is a kind of lottery in which the stake pools participate every few seconds.

Now this lottery is fair in the long run, but in the short run a pool can be rather lucky or unlucky.

The Lifetime Luck parameter reflects this circumstance. And it does so like this:

Lifetime Luck

So it makes sense, when changing pools or when staking in general, to choose a pool with Lifetime Luck below 100% (provided all other parameters also fit).

Conclusion

The return, provided the above conditions are met, is always about the same (long term), at about 5% per year (in ADA).

-> Large pool -> more blocks -> more frequent rewards -> is divided by many delgators

-> Small pool -> less blocks -> less frequent rewards -> will be divided by few delegators

return on stake vs pool groesse
With smaller pools (left), there may well be an epoch with 0 rewards. But epochs with over 10% rewards (calculated over the year) are also possible. In the long term, everything evens out and settles at around 5% per year.

Advanced

Now we move on to the advanced parameters. Here, major differences between stake pools can be identified.

Who operates the pool? Is it a centralized organization like a CEX (Centralized Exchange) that already has 8 pools full & is now filling the 9th?
Is it a nerd who installed a node on his laptop as a side experiment for fun, which is online but I know nothing about it?
Or is it a small group / a person who runs the whole thing cleanly & transparently & is at work with the necessary seriousness & transparency?

The title says it all here.

Is there a lively and accessible community for the pool?
(For example, a Telegram or Facebook group)?

Are events (online & offline) held, does the community meet?

Delegating my stakes to smaller pools (even though a block may not have been produced yet) promotes the decentralized idea & thus the core of the Blockchain and Cardano approach.

Which is now finally the best Cardano Stake Pool

Well, I would recommend to go with us..

& our awesome community..

ADA Suisse Cardano Stake Pool

Ticker: SUI

Pool ID: 71499ef7ad908b4d456955fd6eac7fe4986991cde9f3f38b5abbd58b

ada suisse cardano stake pool

 

 

 

ada suisse cardano stake pool

Which is now finally the best Cardano Stake Pool?

You're welcome..
Welcome at ADA Suisse
Ticker: SUI
Pool ID:
71499ef7ad908b4d456955fd6eac7fe4986991cde9f3f38b5abbd58b

Author
Author

I am Patrick, operator of the ADA Suisse Cardano Stake Pool.
My motivation is to make the world less unfair.

Would you like to help?

Stake your ADA with ADA Suisse (Ticker: SUI)

About me:

I've been in the blockchain world for just under 10 years & started with ADA Suisse in August 2020.
More about me can be found here..

If you have any questions and/or uncertainties, please do not hesitate to contact me.

Become part of us & Cardano!

Do you like the articles? You can actively help by delegating your ADA to ADA Suisse (Ticker: SUI).
Why?
Because a full pool would allow me to do this full time & therefore professionally.
Meaning: 0 risk for you, but full return, thanks to great articles!
And of course: check out the ADA Suisse Loyalty Bonus!
As I said, staking with Cardano & ADA Suisse is worth it!