Recently, Cardano, a top blockchain and cryptocurrency project announced that they are targeting to create over 45 trillion Ada coins. Out of the number, 50% will be availed during the Presale while 20% will be released during the crowd sale. According to Cardano, all staking pools will allow Ada holders to earn more money while relaxing at home. Wondering how this is possible? Well, the coin holders will be allowed to delegate their stakes, so someone else can place them (the stakes) on their behalf.
How Does Staking Pool Delegation Work?
In any proof-of-stake platform, you are offered rewards when you stake your own coins. It’s estimated that you’ll earn about 5% of your stake per annum in a Cardano staking pool. The percentage comes after redeeming your accumulated reward points. Nonetheless, you’ll be required to continuously stake your Ada coins to earn the maximum reward points.
Cardano plans to introduce a delegation feature in the Daedalus Wallet. This will allow you to stake coins on behalf of others or allow them to stake on your behalf. In this case, you’ll need to create a staking key for delegation on Daedalus and other Cardano wallets. You can either stake all your coins or a fraction of it. The decision is all yours.
How to Do the Pool Staking
In order to stake your Ada coins and earn points from them, you’ll be required to run the full version of Daedalus on the Cardano platform for 24 hours. When active, you’ll be allowed to place your stake and wait for the reward points. In essence, what you’ll be doing is contributing to the Cardano network as you wait to earn interests. However, if you lose your contribution for any reason, then you forfeit your reward points. To boost your chances, you’ll need to raise your staking. So, if you are the kind of person who likes a “stake and forget” kind of cryptocurrency network, then the Cardano staking pool is ideal for you. The pool will have measurable uptime values, which imply that the most reliable staking pools will attract more stakers, and contribute more into the network on behalf of its stakers. This is a very significant move that Cardano hopes to really get right.
Conclusion
Cardano is a realistic blockchain project since it’s secure, flexible, and decentralized. This means that the promised reward points are worth a consideration. As a bitcoin holder, you can thus look for better returns. In the end, the reward points are cash redeemable and this translates to a better investment.