Epoch 228 – 50th Block Produced

Statistics for Epoch 228

Estimated number of blocks (Adapools.org) : 4.2

Block Allocated : 5

Blocks Produced : 5

For the first time community-driven stake pools are producing more blocks (52%) than the IOG nodes (48%) as the conversion from federated (all blocks produced by IOG) to decentralised network continues. IOG produced blocks are reducing by 2% per epoch.

So we have just produced our 50th block which is great news and we had a good epoch with 5 blocks produced slightly above the projected amount ( blocks allocated is basically a lottery based upon stake amount). We have also so far produced every block we have been allocated since the system was launched.

This epoch again was fairly uneventful with no new cardano-node software released and everything running smoothly.

The big news we forgot to mention last week is that the “k” variable of the Cardano protocol is changing on December the 6th from 150 to 500. What does this mean for you the delegator? Well it means that pools can have less amount of stake before they become saturated and when saturated you get reduced rewards. So from December the 6th pools will be saturated when they have more than 64 million ADA staked to them so this means delegators have to be aware of this and move pools to a less saturated pool to continue to receive the best returns. This helps us smaller pools as hopefully delegators from the larger pools will move to smaller pools helping the decentralisation of the network and increasing the viability of small pool operators to keep operations running. Unfortunately we will probably just see all the big pools just create new pools and hope to keep their delegators that way which will still mean that big players control huge amounts of stake which is what we don’t want in the network. There is a another variable called “a0″ that could help here and this deals with the amount of pledge (how much ADA the pool operators puts into the pool – their commitment and ”skin in the game’) and how the amount of pledge effects rewards i.e. the larger pledge would create better rewards to delegators. This variable will not be changing however so making lots of smaller pools with low pledge will be possible for the bigger pools which means large amounts of staked ADA would remain under big pools control, so hopefully this will be looked at in the future. If you are interested in more details about decentralisation and the parameters Cardano uses then there are more details here.

Thanks to all of you who continue to delegate with us we really appreciate it and we hope along with a lot of other smaller stake pools that the change in the “k” parameter will help us get more delegators in the near future. Happy Staking and see you at the end of Epoch 229!