Compared big vs. small pool rewards

Date
4. March 2021 Posted By
wisepool-admin
Categories

Hello Cardano community,

today i want to show an example on your stake rewards compared with big/small pools.

Yes, as a starting and small pool it is getting harder and harder to produce blocks and get involved with this to the cardano network!

As a pool operator, you must first ensure that you recruit new delegators so that your pool receives a higher stake.
This is exactly what is currently a very big challenge, as many delegators are not informed!

My goal is to create some clarity here and to encourage delegators and pool operators not only to think about the rewards, but also
also to the goals of the Cardano project.

If you decide to stake in a large pool (> ~ 1-2 million active pool stake), you will receive constant rewards throughout.

However, if you decide to stake to a small pool (<1 million), you can receive larger one-time rewards, but not in every epoch!

[EDITED – removed graphic]: I will try to make a new graphic of historical real examples to clarify this situation!

We have already founded a small group of currently 50 pool operators and are trying to support and educate:

There are also exciting discussions on reddit almost every day. Here are some very good aspects on the subject!:
Source: https://www.reddit.com/r/cardano/comments/lwz0ni/discouraging_staking_with_multiple_stake_pools/?utm_source=share&utm_medium=web2x&context=3
"Hi, I posted in the cardano stake pool sub first to get a feel for whether there were others who shared the opinion that hosting multiple stake pools comes at the expense of small pool operators, and whether it defeats the goal of decentralization and shifts our networks towards more of an oligopoly. It seemed like there were, so I wanted to bring this here for a larger discussion.
The two problems are 1) large pool operators continue to create more and more pools and advertise them rather than staking with or advertising small pool operators and 2) delegators continue to choose to stake with large pool operators who already have multiple pools.
I'm not sure how flexible the mindsets are of the large pool operators to be able to convince them to shut down some pools, but considering problem #2, how can we better encourage new delegators to the cardano network to look for smaller pools?"

"In my opinion, we should encourage new delegators to choose big pools and encourage millionaire delegators to choose small pools. If you go to https://adaex.org/richlist and type in 1200000, you'll see that there are currently over 2500 wallets with over 1,200,000 ADA. Some of those are exchanges, but some of those are genuinely millionaire ADA holders. If you have millions of ADA, your rewards are actually very stable and the difference between stake pools is marginal compared to if you were a new delegator with a small number of ADA. For example, the difference between 100 and 160 is huge in relative terms (60% increase in expected rewards), but the relative difference between an expected reward of 2440 and 2500 is fairly small (~2.5%). Instead of concentrating into the big pools, if millionaire holders put their ADA into a small pool, then that would make a big difference in terms of decentralization.The reason I'd suggest new delegators to choose big pools is so that they can get rewards regularly and build up little by little. Also, larger pools will have slightly higher expected rewards due to the fixed cost of 340 eating away a big chunk of the rewards of the smaller pools.
"