[4ADA3] Should I Stay Or Should I Go?

Size Matters…

Whether or not a pool generates rewards, depends on how many blocks it is allowed to produce. The bigger the total stake, the more blocks it gets assigned. However, the protocol involves some randomness: on some days a pool can get assigned more blocks than on other days, even if its size did not change. Over time this averages out, so the long term trend remains intact: the bigger the pool size, the more blocks, the more rewards.

Smaller Is Better…

Now, about rewards. Total pool rewards are always divided among all stakeholders. So, bigger pools generate more rewards, but these must be divided among more stakeholders.

Smaller pools, such as 4ADA3 at the moment, on average get to produce less blocks, but when they do, those block rewards are divided among few stakeholders, therefore the rewards can proportionally be quite big.

For example, a 90M ADA pool produces around 35 blocks per day, which is equivalent to approx. 32k ADA, so the stakeholder rewards are approx. 0.32ADA for every 1000 staked ADA.

4ADA3 currently has staked 287k ADA. Even if we get to produce just a single block (the reward for producing a single block is currently approx. 920ADA), this represents a reward of 3.21ADA for every 1000 staked ADA, so more than ten times the reward of the 100M pool in the above example!

…But Not All Of The Time

Now comes the tricky part: statistically, a pool gets 1 block assigned for every 1.75M staked ADA. So, with its 287k, 4ADA3 currently will receive 1 block assignment every 6.1 days on average.

What’s Your Size?

If you are currently delegating your stake to 4ADA3, it is entirely up to you if you want to wait for that first, very profitable block, or if you prefer to move your stake to a bigger pool such as 4ADA2, and receive smaller everyday rewards.

This corresponds to the current pool profiles as also described on our homepage; choose 4ADA2 or 4ADA if you prefer great rewards on a daily basis, or choose 4ADA3 if you prefer to take more risk and go for fantastic rewards which may take longer to arrive. So, what’s your size? 😉

Come On 4ADA3, It’s About (Block) Time!!!

So far, this has been the history of 4ADA3:

Epoch

60
59
58
57
56
55
54
53
52
51

Stake

316k
257k
257k
155k
141k
35k
35k
597
597
597

Blocks

0
0
0
0
0
0
0
0
0
0