What is Staking?
. This works for Blockchain projects based on a Proof of Stake consensus mechanism.
Well for that we have to briefly go into the term consensus mechanism.
Since with a blockchain the control of the ledger/table/database is supposed to function decentrally, i.e. no longer under the control of a central organisation, there needs to be a mechanism/methodology to ensure that no one has the ability to forge anything.
They check the received block with what they have written themselves.
. For a staking pool, delegated ADAs are to be considered as lottery lots.
Other Questions & Answers about this topic
Staking can help you generate passive income. If you delegate your ADA to ADA Suisse, you will receive around 5.5% rewards RISK-FREE. This is similar to having money in a savings account and generating 5.5% interest annually (which is currently rather difficult).
Price fluctuations remain, of course, and the value of an ADA can still increase or decrease. You may also delegate your ADA to a pool where you receive less or no rewards.
However, the initial amount remains the same and your ADA is still fully under your control. You can sell, swap or send your ADA to another wallet at any time.
If you delegate a wallet with 1000 ADA to a Stake Pool, they will at least remain there.
Normally you will receive about 5-6% rewards per year, so after one year you will have about 1050 on your wallet.
*Minus the one-time registration deposit & costs, but these are marginal, more on this below.
For all transactions involving ADAs, 0.17 ADA transaction fees are charged, which are paid out again as rewards. In addition, the rewards also come from ADAs that have not yet been circulated.
To delegate a wallet, it is necessary to register its so-called stake address in the blockchain.
This happens on the basis of a transaction.
Therefore, a one-time fee of approx. 0.17 ADA is charged.
A deposit of 2 ADA is also required. The deposit is returned as soon as the wallet is unregistered.
Note: You stake / delegate a wallet, not an amount. This means that the above process only has to be carried out once initially.
If you send ADA to the corresponding wallet, these costs are no longer incurred.
Costs of the pool
A Cardano Stake Pool charges two types of costs:
Rewards are distributed directly by the algorithm, without the influence or intervention of the pool operator or similar.
If the pool does not mine a block in an epoch (which can happen in particular with small pools and is completely acceptable), the rewards for this epoch are zero, which also means that no fees are incurred.