Cardano Shelley is set to unlock new opportunities for those who are looking to create and operate a stake pool.  Those who are willing to run a stake pool on Cardano will be rewarded for adding transactions to the blockchain.

Stake on the Cardano Blockchain refers to the stake size, which is proportional to amount held in ADA.  Cardano works based on the ability to either pledge or delegate the stake.

An ADA holder can either delegate his stakes to a stake pool (or) run their own stake pool, rewards are applicable for participants both ways.

The Ouroboros Protocol determines who will be able to add the next block to the blockchain.  They will also receive a monetary reward for adding the block.  The Ouroboros Protocol determines the next eligible pool to add the block by virtue of their “amount of stake” which is delegated in the given pool.

The higher the stake the better are the chances for the stake pool to be the next one to add the block. However, the more stake thing is only up to a certain point. Also, the reward will be shared between all of them who delegated their stakes to the stake pool.

ADA holders who do not have the desire or skill to run a node can delegate their stakes.  However, even such holders will be able to participate in the reward process in proportion to the stake they delegate.  The incentive for staking is provided considering the fact that incentives are crucial to sustain the longevity and health of the Cardano Network and Ecosystem.

Sydney Ifergan, the crypto expert tweeted:  “Cardano (ADA) are a skilled team. It makes sense to be a part of a global community who are capable of making changes possible.”

Cardano (ADA) Clarifying Stake Pool Concepts

Daedalus supports the delegation wallet.  It is a full-node wallet which has been developed by IOHK and Yoroi.  Daedalus is a browser based wallet developed by EMURGO.

Those who are looking to take advantage of the rewards will do good by exhaustively being clear of concepts like delegating to multiple stake pools, re-delegating to another pool, understanding pool saturation, pool desirability, pool performance, pool rank, choosing the stake pool, estimating the amount of money one can probably make, the supported wallets and knowing how to find and use them, and also on how to restore an ADA balance from a hardware wallet. It is also important to know if the ADA rewards will be added to the delegated stake.