WELCOME CARDANO SOUTH FLORIDA ZOOM MEETUP
WELCOMECARDANO SOUTH FLORIDA ZOOM MEETUP
STAKING REWARDA LONG-TERM REWARD STRATEGY
Hassan Michael
❑ CSF Meetup organizer
❑ Cardano evangelist & enthusiast
❑ Experienced software developer
❑ Graduated Florida International University
❑ Earned several blockchain certificates
❑ Blockchain entrepreneur
❑ DApp360 (D360) Stake Pool Operator
❑ Originally from Liberia, West Africa
CONTACTS❑ Telegram: @DAPP360_MIKE
❑ Twitter: @DAPP360_MIKE
❑ Email: [email protected]
Matthew Consolo
❑ CSF Meetup co-organizer
❑ Cardano enthusiast & entrepreneur
❑ Experienced DevOps engineer
❑ DApp360 (D360) stake pool operator
❑ South Florida resident
CONTACTS
❑ Telegram: @DEADPOOL217
❑ Twitter: @MATTHEW_CONSOLO
❑ Email: [email protected]
Taryn Koshelnik
❑ CSF Meetup co-organizer
❑ DApp360 Marketing & Relationship Manager
❑ Former consultant – Unilever, Bacardi, P&G, etc.
❑ Experienced Project manager & Business Admin
❑ Event coordinator & Organization support
❑ Founding member of multiple companies
❑ DApp360 (D360) Stake Pool Team member
❑ From South Africa, now resides in South Florida
CONTACTS
❑ Email: [email protected]
Cardano South Florida (CSF)
INTRO
➢ A South Florida based and operated Cardano community
➢ Started in 2018 with just 2 members at the first meetup
➢ There are currently 190 members in CSF Meetup community
GOALS
➢ Nurture individuals who are interested in the Cardano ecosystem
➢ Foster the growth and adaption of Cardano blockchain and ADA
➢ Grow CSF to a 500 member community by December 2021
➢ Provide an anchor point for everything Cardano in South Florida
MEMBERS BENEFITS
• Provide CSF members with Cardano subject matter experts
• Locally host exclusive social and networking events for crypto
• Provide learning and educational resources exclusively on Cardano
OUR HOPE
1. Help you identify important factors that affect your reward
2. Help you plan a long term strategy for staking reward
3. Help you maximize your staking reward
AGENDA
I. Staking reward - Some Basics
II. Why consider staking rewards
III. Some important facts about reward & ROS
IV. Analysis of Reward % - BIG POOL versus small pool
V. What is a long-term strategy for staking reward
VI. Key factors influencing a long-term reward strategy
VII. Long-term strategy checklist for staking reward
VIII. Question & Answers
WHAT IS CARDANO STAKING REWARD?
Staking rewards are compensation or incentives that are given to ADA
holders in exchange for their participation in the decentralization of
Cardano blockchain
WHERE DO REWARDS COME FROM?
➢ Cardano monetary expansion reserve
ADA reserve for initially sustaining the network in its early stages of
deployment and growth
➢ Treasury
Fees deposited into the treasure that is collected from every network
transactions
Staking Reward – Some Basics
Why Consider Staking Reward?
EXTREMELY HIGH RETURNS
➢ Cardano’s annualized staking reward returns an average of about 5%
➢ According to Bankrate.com, best APY for online banks savings account is 0.83%. (Yearly)
https://www.bankrate.com/calculators/savings/simple-savings-calculator.aspx
➢ Savings account returns from traditional bank like BOA saving account around .01% to .05%.
POTENTIAL & EXPONENTIAL ASSET APPRECIATION
➢ Rewards are paid in ADA – which appreciate in monetary value as the network becomes more useful and widely adapted
➢ ADA has a huge upside to appreciate with the implementation of smart contracts and Dapps technologies
Delegate you stake (ADA held by you) to a stake pool of your choice
How to earn staking reward
Reward & ROS – Important Stats
➢ Reward Minimum & Maximum Annualized %
Minimum – 0%Maximum – Average about 5%.
https://cardano.org/calculator/?calculator=operator
➢ Epoch Reward Pot Current Reward Pot: 31.5m – (changes from one epoch to another)
https://PoolTool.io
➢ Saturation PointSaturation is currently at 210 Million – (changes base on total stake)
https://PoolTool.io
➢ Reward period after switching from one pool to another20 days or 4 epochs not including the epoch in which you stake
https://forum.cardano.org/t/the-shelley-hard-fork-all-you-need-to-know/36553
III. Reward
Long term factors to consider
➢ Saturationover the limit, reduction in rewards
➢ Performance track record Poor performance (block production), poor rewards
➢ Possibility of pool retirement vs continuityStake pool operator could retire a stake pool for several reasons
➢ Stake sizeSmaller pools could lose all their delegates Larger pools could reach saturation faster
➢ PledgePledge perimeter could increase, negatively affecting pools with little pledge amount
➢ Pool switching frequencyFrequently switching from pool to pool is risky due to blocklottery.
Long Term Strategy - Duration
WHAT IS A LONG-TERM STAKING REWARD STRATEGY?
➢ Long-term strategy is an annual strategy in which an ADA holder
delegates his/her stake to the same stake pool with the same fees
and same performance for at least a year.
Why a year
A year averages out Cardano lottery fluctuation in blocks assigned to a
stake pool
To reap maximum reward, Cardano staking calculator estimates same
pool, same fees, good pool performance for 365 days.
Long term stress-free reward checklist
✓ FURTHER AWAY FROM SATURATION
Select a small pool with enough stake to make blocks every epoch. This strategy keeps you from having to switch pools frequently which can be stressful.
✓ AVOID FREQUENTLY SWITCHING POOLS
Switching pools delays your rewards. As we saw earlier, every time you switch to a new pool, it takes 4 epochs (20 days) before you receive your reward from the new pool
The grass may be greener for the epoch in which you switch pools but may not be greener when your stake is active with your new pool. Block assignments to stake pools are based on a randomized lottery system that is not controled by any stake pool.
✓ REAL-TIME BOT UPDATE
Make sure your selected pool has a real-time update bot. Pool update bots make life easy for you by automatically updating you about your pool performance and metrics. You don’t have to go searching websites.
Long term stress-free reward checklist
✓ ACCEPTABLE (NOT NECESSARILY THE LOWEST) FEES
Select Pools with low fees and low cost
✓ HIGHER PLEDGE
Higher pledge amount equates to better rewards for the poolMore of the SPO’s skin in the game, less likely the pool will be retired
✓ Know your SPO (Stake pool operator)
Knowledge of your SPO can help you build trust and relaxStake pools with two or more operators ensures continuity or longevity
✓ Contribution to the Cardano Community
Pools contributing to the Cardano community are more likely in it for the long term which may be a sign of longevity
Questions & Answers
CSF ANNOUNCEMENTS
• Release of new website for Cardano South Florida members
• In need of a volunteer to webmaster or maintain our new website
• Nominate us for Cardano ambassadorship as Meetup Organizer
*Please let us know and we will tell you how to nominate us*
• Accepting topic suggestions for the next Zoom event
Happy Stake-Delegating