Cardano vs Ada, what's the difference?
Cardano is the blockchain. Ada is the principal token (coin) in the Cardano blockchain.
They are named differently because Cardano supports multiple native tokens (like Thankcoin ☺️).
However, Ada is always needed for transactions.
What is Staking?
By staking you Ada, you contribute to the security of the Cardano system and earn rewards along the way.
Although not exactly, you can think of it as similar to earning interest from your money in your bank.
What is Delegating?
Staking Ada by yourself is a highly technical and complex task. It requires paying for servers, setting up core node and relay nodes, updating and monitoring them 24/7, and much more.
That's why you can just delegate your staking to a professional stake pool (like STAY pool ☺️).
What is Stake Pool?
Stake Pool is where many people stake together and share rewards proportionally to their Ada staked.
Pool Operator is the sleep-deprived one who takes all the hard work so everyone else can earn rewards.
What is Epoch?
An Epoch is 432000 seconds, or 5 days.
What is pool Fee?
Pool fee is one of the most misunderstood terms in Ada staking.
What it is:
· It is taken from the total rewards of the whole pool
. That means it is divided among all delegators.
What it is not
· It is not
a "membership fee" that you have to pay.
· It is not
taken from your Ada wallet.
What is pool Margin?
Pool margin is the percentage of the total rewards that a stake pool takes.
Example of pool Fee & Margin?
For example, let's say the total rewards of an epoch is 50000 Ada.
· First, we take the lowest possible fee, 340 Ada.
· Next, we take 1% from the remaining 49660 Ada, which is 496 Ada.
· The final 49163 Ada will be divided among all delegators, proportionally to their Ada staked.
How much Ada do I need to start staking?
You can start staking from 14 Ada, including deposit and transaction fee.
Do I have to pay to stake?
You'll need to deposit 2 Ada
to start staking. This is the same for all pool.
STAY pool does not
take this 2 Ada.
Do I have to send my Ada somewhere to stake?
No. Your Ada stays in your wallet.
Is my Ada locked?
No. You can send your Ada anywhere, anytime.
Do I have control of my Ada?
Yes. As long as you keep your Ada in a wallet and not on exchanges, you have full control of your Ada.
Do I need to stake my rewards?
No. All rewards is automatically staked.