JAGO
4K posts
JAGO
@thatisjago
Liberty | #Crypto Enthusiast | Design | Minimalism
Somewhere Katılım Temmuz 2009
244 Takip Edilen536 Takipçiler
What a wild couple of weeks 😅Huge thanks to everyone who jumped into the Midnight Scavenger Mine with us. Paddy and I had a blast staying up way too late, shipping updates, and helping people in the discord run the bots we open sourced. Hope the tools made your grind a little easier 💪
We also released a fully opensource consolidation tool a few days ago which you can download and run on your desktop. You can import a seed to consolidate all addresses on it to one or connect any Cardano browser wallet and consolidate from it to any other address.
We really appreciate all the support, seriously it meant a lot. Looking forward to the next stages with @PoolShamrock and @MidnightNtwrk @midnightfdn
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What should we call a Midnight Community Member? I'm thinking of calling the collective community the Midnight Syndicate
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The best NCL, Net Change Limit or yearly withdrawal rate should be a percentage of treasury funds, relatively value, not absolute value. It prevent a risk that we go to zero with Cardano Treasury, e.g. 5% per year.
150 mln ADA withdrawal in 2025 represents 8% of the treasury.
150000000÷1730000000 = ca. 8,5%
#Cardano
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I think i might agree with this.
Daily Loud@DailyLoud
Kanye West names his 12 rap kings What do you think of this list?
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@cardano_whale Oh thanks! Yeah… I wasn’t able to continue working on that… I was even doing the v2 but have to deal with other stuff. Maybe in the future 🤷🏻♂️
Thanks for the support though!
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Small addendum btw, the virtual pot is only filled with 0.3% of the reserve if at least 21,600 blocks are made in the epoch. If less blocks are made, the part taken out of the reserve is linear.
So for epoch 537 which had 21,406 blocks, quite high, only 0.297% was taken out of the reserve. But e.g. epoch 507 had only 20,803 blocks and only 0.289% was taken out of the reserve.
Unlike the unclaimed rewards, this does also affect the amount flowing into the treasury for a given epoch.
But in rough calculations, you can ignore this factor most of the time, because the difference isn't that much. ☺️
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How much would staking rewards increase if the "Tax" were reduced from 20% to 10%?
Let's break down the numbers together.
First, let's understand the current reward mechanism.
Staking rewards and income to the Cardano treasury come from two sources: the reserve and fees.
Every epoch, a "virtual pot" is filled with 0.3% of the reserve (defined by the parameter ρ) and the collected fees.
The T parameter defines the percentage of the virtual pot that will go into the treasury, with the remaining portion allocated for staking rewards.
Currently, the T parameter is set to 20%, meaning 80% of the pot is left for staking rewards.
If all the stake was delegated and all pools were in equilibrium, so fully saturated, fully pledged, with perfect performance, and all ADA were staked, then staking rewards would account for the full 80%.
The protocol incentivizes stakers to maintain exactly 500 saturated pools (the k parameter).
However, currently, we have about 1200 active pools. It means that all of them cannot be fully saturated.
From the protocol's perspective, having more pools doesn't necessarily mean greater decentralization.
Moreover, more pools can lead to longer block diffusion times. Let's set this aside for now.
In reality, only a portion of the staking rewards is claimed.
Unclaimed rewards are returned to the reserve.
Let's examine how ADA distribution occurred in epoch 538.
In epoch 537, there were 7,433,694,306 ADA in the reserve.
22,301,082 ADA were added to the virtual pot from the treasury and fees for the entire epoch, which included 76,469 ADA from fees.
This totals 22,377,551 ADA.
20% of this amount (4,475,510 ADA) was deposited into the treasury.
The maximum possible staking rewards would be 17,902,041 ADA.
However, only 7,827,683 ADA were claimed, representing about 45%. The remaining 55% was returned to the reserve.
The green line in the image below shows that the reserve is depleting more slowly than initially expected (red line).
Now, let's see what would happen if the T parameter was reduced to 10%.
Only 2,237,755 ADA would be deposited into the treasury.
The maximum possible staking rewards would be 20,139,755 ADA, which is 2,237,714 ADA more.
As a result, 9,062,889 ADA would go to staking rewards.
Currently, a typical saturated pool could receive 23,483 ADA as a reward for the SPO and all stakers.
If the T parameter were reduced to 10%, the same pool would receive 27,188 ADA.
How much would this be for a staker who delegated 600,000 ADA to the pool?
After deducting the pool's reward, the staker currently receives about 226 ADA.
If the T parameter were reduced from 20% to 10%, the same staker would receive 262 ADA—approximately 36 ADA more.
The decision to reduce the T parameter should be carefully considered, balancing incentives for stakers with the long-term sustainability of the network.
If we want larger staking rewards, we should address 55% of unclaimed rewards.
If the protocol rules were 100% satisfied, the staking rewards would be 9,846,122 ADA higher than currently.
In the case of reducing the T parameter, we are only talking about 2,237,714 ADA.
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@cardano_whale i only buy american ada and my stake yield is from american pools both geographically as well as the ppl that run them
i made sure my pool operators are pure blooded christian, white, native americans
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@cardano_whale Whale, there's something about stablecoins which is that they live on account-based model blockchains...
I'll keep repeating this...
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