We’ve changed CNODE’s margin fee back to 0.00%. Even when CNODE becomes saturated again, it will remain at 0.00%.
But how can we stop CNODE becoming too saturated? We’ll be offering delegators a different incentive to migrate to FUND. We’re keeping the details a surprise for now.
Why We’re Doing This
Basically CNODE was at 0.00% before, but it became saturated and prompted us to create a second pool (named “FUND”). We asked delegators to move to FUND (to balance the number of delegators between pools), but not enough did.
Next, we tried raising CNODE’s fee to encourage delegators to move. Many delegators moved, but not enough. In fact many moved to other pools, including ones with higher fees. So it appears many delegators don’t understand how staking fees work. So we’ve explained it below.
How Fees Affect Your Rewards
There are two types of fees:
Margin Fee: This is the Stake Pool’s cut of your profits. It can be anywhere from 0% to 100%. Our margin fee is 0% for both our pools, which is the lowest possible.
Fixed Fee: This is a compulsory fee that every stake pool must take. The lowest allowed fee is 340 ADA per epoch. Our “fixed fee” is 340 ADA per epoch, which again is the lowest possible. The “fixed fee” is paid each epoch, and comes from all rewards combined from all delegators.
About The Incentive To Migrate To FUND
We’ve spoken to numerous delegators about it, and the response is very positive. But we don’t want to release more details for now because they aren’t finalized, and we don’t want to create confusion. The details will be published before CNODE becomes saturated again, and you’ll be notified if you’re on our mailing list.
NOTE: If you are already delegating to FUND, you will still be eligible for the “incentive”. So the incentive doesn’t apply only to delegators who join FUND after we begin officially offering it.
Rewards Are Still 100% Guaranteed
Even with the 0% fee, we still guarantee you’ll never miss out on rewards. This means if we ever miss a block, we’ll compensate you. Details are at www.cardanode.io/guarantee/.