Delegating is effectively allocating your coins, in this case ADA to one or more pools. In return, you will gain rewards if the Pool manages to mint a block; i.e. it extends the blockchain. Your delegation is SO important to the pool operator, because the more coins the operator has, the more likely they will be awarded a block to mint. It's a lot like the lottery! One number across the entire staking pool network is selected, the lucky number's pool is then given the opportunity to mint it to the chain. For that, the pool is rewarded more coins which are then awarded to all delegates. However, those rewards are first split in this order:
The Pool is awarded his Fixed Fee (in our case 500 ADA is taken)
The Pool is then awarded any Variable Fee (we've dropped this to 0%)
Finally, the rest of the rewards is divided evenly by all the coins in the pool; including the pledge from the Pool (in our case 200K ADA)
The rewards are automatically calculated and sent after each Epoch, which is 5 days.
Currently, the expected reward for a Block is rumoured to be between 800-1200 ADA, but until CRAZY mints one, we can't be certain. Given this and our fee's, we require 1 Block per Epoch to be minted and all delegates will earn a split of those first 300 to 800 coins. However, based on the Shelley testnets, we were minting 5 to 8 blocks based on 1.4M ADA in the pool; so expect to return a lot more.
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Delegating is effectively allocating your coins, in this case ADA to one or more pools. In return, you will gain rewards if the Pool manages to mint a block; i.e. it extends the blockchain. Your delegation is SO important to the pool operator, because the more coins the operator has, the more likely they will be awarded a block to mint. It's a lot like the lottery! One number across the entire staking pool network is selected, the lucky number's pool is then given the opportunity to mint it to the chain. For that, the pool is rewarded more coins which are then awarded to all delegates. However, those rewards are first split in this order:
The Pool is awarded his Fixed Fee (in our case 500 ADA is taken)
The Pool is then awarded any Variable Fee (we've dropped this to 0%)
Finally, the rest of the rewards is divided evenly by all the coins in the pool; including the pledge from the Pool (in our case 200K ADA)
The rewards are automatically calculated and sent after each Epoch, which is 5 days.
Currently, the expected reward for a Block is rumoured to be between 800-1200 ADA, but until CRAZY mints one, we can't be certain. Given this and our fee's, we require 1 Block per Epoch to be minted and all delegates will earn a split of those first 300 to 800 coins. However, based on the Shelley testnets, we were minting 5 to 8 blocks based on 1.4M ADA in the pool; so expect to return a lot more.