EP006 - Delegating Your ADA to a Stake Pool & Understanding the Benefits

May 4, 2021

In this episode, I talk to Bas Mons, about the importance of moving your ADA from an exchange and delegating Your ADA to a stake pool. Bas is a stake pool operator from the Netherlands.

We touch on some topics and issues that small stake pools have when starting and how delegates can help these pools while also helping charities and missions at the same time.

News - Cardano Africa

Delegating your ada and Cardano Africa special

Key Highlights

Cardano is onboarding 5 million students and teachers to Cardano to ensure performance records are traceable. The Ministry of Education can analyse performance and improve areas where improvements are needed while also providing a clear academic record. 

Student can prove their education levels to potential employers and other educational institutions.

This identification runs on Atala Prism, Input Output Global's Digital Identification (DID) solution, which runs on the Cardano blockchain.

The World Mobile partnership announcement is a synergy with Cardano's mission to bank the unbanked. To provide financial services to people in Africa, they first need to be connected to the Internet. World Mobile plans to build a decentralised communications network providing affordable and fast broadband services to remote users. This decentralised mobile network will onboard over 100,000 users, connecting them to Cardano by giving them a digital identity with Atala Prism. It will allow these users to access different finance and lending options that have not been available before, dubbed RealFi, "real" decentralised finance for real people.

World Mobile will help people get online for the first time. Users will be able to access education, healthcare, finance and other services that have not been accessible before.

You can find out more about World Mobile and an upcoming token at https://worldmobiletoken.com/.

Singularity Net and iCog Labs teams are building an innovations lab in Ethiopia to bring the future of artificial intelligence to Africa.

The innovations lab will enable local teams to build the solutions needed in Africa. The innovation lab will work with incubators Ice Addis http://www.iceaddis.com/ to support entrepreneurs and onboard developers to Cardano.

Community driven growth is also happening in the form of mission-driven stake pools the West Africa Decentralise and Catalyst initiative with over 200,000 in funding to help grow Cardano in Africa.

COTI announced their partnership with Save the Children and their plans to provide charitable donations for non-profits worldwide to accept ADA.

EMURGO, the commercial arm of IOG, announced that their track and trace supply chain solution would be rolling out in Africa to various industries such as farming and mining. After being successful for coffee farmers in Indonesia, providing transparency in the supply chain in the industries there.

What Is Staking and Delegating Your ADA?

Bas Mons joins me to talk about delegating your ADA and staking with small pools on the Cardano blockchain but let's first look at what staking is.

If you want a more detailed explanation, you can listen to episode 2 of the podcast to learn about how Proof of Stake works and how it compares to Proof of Work, which Bitcoin and Ethereum, amongst many other blockchains, use to validate their networks.

In short, delegating your ADA & staking provides the validation of the transactions on the network by holding and delegating the cryptocurrency ADA to a stake pool from your wallet. The more ADA delegated to a stake pool, the more secure the network becomes. You, as a delegator, are rewarded with ADA for delegating to a stake pool. The average return is 5% PA on your ADA.

Why You Should Delegate Your Stake to a Small Operator

Bas talks about the cluster pools and why it's an issue to decentralisation. If you look at ADAPools.io, you can see all the different groups formed and the large cluster of pools from exchanges.

In reality, it's a good business model for the exchanges to have. Provide the buying, selling and trading and staking services all in one central location. It's convenient and easy to do so.

Link to AdaPools.io groups and clusters. https://adapools.org/groups

The Benefit of Delegating Your ADA & Staking Yourself

You can stay on the exchange as a beginner and feel safe.

You can move your ADA to your wallet to have more power. Voting rights and move the project in the right direction and control your wallet.

Bas has more to say on this:

There are risks with staying on the exchanges. Bas also explains this.

Leaving your ADA on an exchange means that you don't have control over it. You don't physically hold it. You have a digital representation of your balance of ADA from that exchange, and the exchange holds it in a wallet on your behalf.

If you listen to episode 5, we talk about regulation and how Government regulation can affect an exchange. At the time of writing this, the Turkish Government are searching for the owners of two Turkish exchanges that essentially went belly up on the news of the Turkish Government banning cryptocurrencies as a form of payment.

A Chinese exchange was also targetted this week with a denial of service attack, taking down access to the exchange and overloading the servers. The attack means you can't access your ADA. You're completely locked out.

In both of these situations, your ADA is entirely out of your control. You can lose all of your ADA or other cryptocurrencies.

If you have all of your ADA in your wallet, you would be able to avoid these issues and still buy, sell and trade with ease on other exchanges or decentralised exchanges.

You also can't buy NFTs or Non-Fungible tokens if you have exchange held ADA. NFTs need to be sent to a wallet that you own. If you use an exchange wallet, then you are donating your NFT to the exchange.

If you listen to episode 4, you can learn more about NFTs and how you can create one for yourself.

What's Your Strategy to Build Wealth?

Most people are in it for the money, looking for financial freedom and wanting to get ahead in life to make their lives easier and more enjoyable. There is nothing wrong with wanting money, financial freedom and getting ahead. Being rewarded for effort and knowledge is a good thing.

The Cardano staking strategy of delegating your ADA is slow and long term, but you don't need to think about it too much. You only need to find a pool with a good reputation and is managed well, and you're good to go. Just check in every month or so to ensure it hasn't become saturated. Most small pools are far from being saturated and are unlikely to become saturated.

A lot of people are in it for the quick, easy gains. 

If you're good and constantly monitoring the markets, you can make some significant gains, but many pumps and dumps catch people out. 

How do we get people to change the mindset of staying on an exchange?

Connect with your stake pool operator. Every active pool has a way to communicate to the operator.

So Many Pools! Which Pool to Choose

There are so many stake pools now it has become so hard to choose which pool to stake.

Bas talks about how there are a lot of pools that are not active.

To search for a pool, you can do so in the Daedalus wallet app. That gives you a plain view of all the pools on the network, and you can filter pools based on the amount of ADA that you have for the best possible returns for yourself.

Another site where you can find more details about all the pools is ADAPool.org . The website is overwhelming when you first look at it, but it gives you much more detail about the pools. There are a few key things to note.

The Pools list area of the website will show you all of the pools ranked by their ranking algorithm, which revolves around the return on ADA.

Look for those social media links and check if the operator is active. Some channels may be more active than others; for example, I'm pretty active on Twitter.

Check for the ROA 1M and Lifetime. It will give you an indicator of the past performance of what return you might get. It isn't always accurate, but it is a good guide.

Check the saturation level of the look. The colour of the bar is a good indicator. Green means the pool is far from being saturated, and a large 'whale' delegator that might come by won't oversaturate the pool and diminish the returns. Oversaturated pools will have far fewer returns.

The only other factor I would be worried about is the pledge. The pledge is how much ADA the pool operator has placed on the pool server and indicates how invested they are in the pool. 

A high pledge may mean that the owner got in early on the project and could buy a lot early, or they invested a lot later in the game to get a decent amount of pledge. The higher the pledge, the higher the rewards that get allocated to the pool. Some huge pools may have 1 ADA pledge to deter you from delegating to that pool.


Leave a Reply

Your email address will not be published.

EP042 - Cardano ADA News Update from May 27th, 2022

May 27, 2022

This week I look at a few updates from the Cardano community. More projects are delivering new tooling along with new partnerships. Watch the Video If you prefer YouTube, you can watch it all on our channel. Project Catalyst Fund 9 is coming up Register for the upcoming town hall events. dcSpark Release Carp dcSpark […]

EP041 - Free Crypto Airdrops, Token Distributions & Initial Stake Pool Offerings

May 27, 2022

There are many projects launching, building and running through their marketing campaigns at the moment and as a result, many are releasing their utility and governance tokens to the ecosystem. This is our chance to pick up some of these tokens and participate on their platforms. Indigo Protocol Airdrop What's the currently proposed 3-round token […]

EP040 - Seedstars Accelerator & Pitch Competition

May 27, 2022

Seedstars in collaboration with the Financial Times Talent (FT Talent), Project Catalyst and Cardano are holding a pitch competition to gather the best of the best projects working in emerging markets around the world. Projects at any stage of development will be able to get their ideas and concepts in front of the Seedstars group […]

New Cardano ISPOs for April 2022

April 22, 2022

Every few months there are more and more Initial Stake Pool Offerings (ISPOs) that are starting up in the Cardano ecosystem. This unique funding method allows projects to raise the necessary funds required to build their projects while allowing for a relatively safe and risk free way to participate in the ecosystem. Genius X ISPO […]

How to Compound Your VyFinance Rewards from NFT & Token Staking

April 15, 2022

Compounding your rewards on the VyFinance (VyFi) platform can earn your more rewards compared to simply leaving your rewards unattended. Compound interests is a powerful invention. Harvesting Rewards & Compounding Returns on VyFinance Did you remember to harvest your rewards on the VyFinance platform? I totally forgot! All of my NFTs had matured and were […]

Happy Cardano Stake Pool Registration Day to ADAOZ and Our First Year of Operation

February 21, 2022

One year ago today, I decided to open up a Cardano stake pool and I've ended up down a rabbit hole that I did not expect. My expectation was to simply start a pool, write a handful of articles about the pool and staking and watch the delegation come in. That was far from the […]

Choose a Wallet

Get Started

Delegate with the Daedalus Wallet

  • Download the Daedalus app
  • Create/select your wallet
  • Select Delegation Centre -> Stake pools
  • Search for our stake pool ticker: ADAOZ
  • Select to delegate
daedalous wallet

Delegate with the Yoroi Wallet

  • Download the Yoroi app
  • Create/select your wallet
  • Select Delegation Centre -> Stake pools
  • Search for our Stake pool ticker: ADAOZ
  • Select to delegate
Yoroi wallet

Delegate with the Nami Wallet

  • Download the Nami Wallet extension
  • Create/select your wallet
  • Send funds to your wallet
  • Click DELEGATE WITH NAMI Button on our website
Nami Wallet

Stay Up to Date

Visit our FacebookVisit our TwitterVisit our YouTube channel
DISCLAIMER: The information on this site may contain errors or mistakes, please do your own research. Unofficial Cardano website.
Past performance is not indicative of future results. Any investment in blockchain assets involves the risk of loss of part or all of your investment. The value of the blockchain assets you exchange is subject to market and other investment risks.
Copyright © CardaNode Australian Cardano Stake Pool. - Designed & developed by PB Web Development
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram