Why Impatience Does Not Pay Off
The Accordion Effect
Did you know it takes 2 epochs before your delegated stake actually becomes active?
It happens quite a lot that big delegators cause what can be described as “the accordian effect”. It happens when big delegators arrive at a certain pool, but decide to remove their stake the next day, if they do not immediately see good results.
This is because their stake does not come into effect until 2 epochs later; which means the pool is still generating blocks on the basis of its total stake BEFORE the delegators arrived!
So, delegators leave, but the next day the pool suddenly produces an enormous amount of blocks, for the benefit of those who stayed! In the meantime, delegators may very well have moved their stake in order to get disappointed once again the next day!
This causes a lot of pools to alternate very good days with very bad days, due to the big fluctuation in block task assignments.
Therefore, carefully pick a pool based on longer term analysis, then allocate your stake and just wait, trusting the pool will continue its successful track record!
Happy staking! 🙂