0% Margin, Bare Metal, Single Stake Pool Operator
We charge 0% fees. We are doing this for the love of the community and good of the world.
That said, Cardano’s system contract enforces a minimum 340 ADA fixed fee which is distributed to us only when the stake pool receives a block reward. This is paid to us from the system contract, not your wallet.
Over the long-term, stake pool rewards are approximately equal amongst all stake pools. That is the math of the protocol. For example, we were lucky enough to mint 2 blocks early-on. Our yield displayed as being well over 60%. Our luck displayed as an astonishing 5,000% (!). Many delegators flocked to us chasing those abnormally high statistics. The math of the protocol has since normalized our yield by not assigning more blocks to mint.
We caution delegators against "pool-hopping" (chasing pools which show abnormally high yields). Chances are very high those pools were simply lucky; and that luck was temporary. The math of the protocol will normalize them, too.
Similarly, when our yield and luck percentages show as being below the norm, we expect that is when we might soon be assigned another block(s). Those who are delegated to us when that happens share in those rewards.
The chances of a stake pool receiving a block reward are greatly influenced by how much is staked (delegated and pledged) to the stake pool . Cardano’s system contract will give us the minimum 340 ADA deducted from the block rewards and equally share the balance of the block rewards with those in the stake pool. Other stake pools, especially multi-pools and larger pools, may require MORE than 340 ADA per block reward. No stake pool can receive less than 340 ADA per block reward as that is a system enforced minimum.
Additionally, to discourage everyone piling into large stake pools, there is a system enforced cap on rewards which diminishes above a system calculated limit. That is there to encourage delegating to smaller stake pools so they too have a chance at being sustainable.
No. Only you maintain custody and control your ADA tokens. They remain in your wallet and are never surrendered to us. You may delegate or un-delegate your tokens at anytime.
We hope to keep fees at 0% indefinitely. However, it is reasonable to presume Cardano's Basho Era scaling improvements may require more robust hardware than we currently have on hand. That said, if our stake pool were to become large enough to support increased fees, we would consider raising fees as appropriate to support our mission of deploying bare metal relay servers around our region.
Cardano’s system contract controls the staking reward amount and the distribution of the reward. As the Stake-Pool Operator, we only control what we charge to maintain the Cardano servers to which you are delegating.
If you are interested in the dirty details, this link is where you shall find them.
Currently, over 70% of Cardano's stake pool operators are hosted by just 13 Cloud hosting providers. A majority of those are ENTIRELY hosted by those hosting providers. That is the opposite of decentralization.
Not your servers, not your stake pool. Ultimately, the administrators of those data centers control the viability of those stake pools because they control the physical servers upon which the virtual servers run.
The entities owning the data centers are themselves controlled by others. It would not be too difficult for authorities or a government to shut down or control those data centers.
Too many Cloud-only stake pools are bad for decentralization.
Delegating to bare metal single stake pool operators helps to guarantee real and lasting decentralization of the Cardano network.
Although Cardano is resilient to centralization, it is only invulnerable when bare metal single stake pool operators comprise the 500 (currently) desired stake pools. Our ticker is 001.
We are 100% bare metal for the block producing server, it’s two local relay servers, and a cold backup server. They have redundant gigabit fiber connections to the Internet and sit behind a monitored adaptive network security appliance and several firewalls on a dedicated, isolated hard-wired network. We have one (1) remote Azure cloud relay node.
All server specs exceed published recommended specs; and we are ready should those recommended specs increase.
We published a blog with all the details. Click here.
Local servers are connected to UPSs, grid-tied solar arrays, and a fuel powered generator activated by an automatic transfer switch (ATS).
Disclosable physical security includes a barbed wire outer perimeter fence, concrete inner perimeter fence with steel spikes, multiple layers of video surveillance with automatic human, movement, and sound detection, 24/7 Rottweiler patrols, server room having safe room spec walls and ceiling; positive ventilation, and dedicated cooling (should air cooling be needed)..
The bare metal block production server, it’s two local relay servers, and a cold spare server are physically located in natural disaster-free Thailand.
Most stake pools are cloud-only. That creates centralized risks antithetical to Cardano’s objective of maximizing decentralization of stake pool servers. Always choose bare metal and geographically diverse stake pools. Cardano is the way.
We expect to remedy this after the delegated stake increases to a level which could sustain additional investments. Grid power outages occur on average about 6-8 times per year and last less than 4 hours. Primarily caused by storms during rainy season. There are no earthquake, flood, or wildfire risks UPSs are good for up to 2 hours. Our backup ATS generator can run 14+ hours per fill. Ample fuel is nearby. We could continue to power all servers almost indefinitely, if grid power were lost.
Internet connectivity has never been affected by power grid outages. We have a wireless connectivity option with a third ISP at the ready, should it ever be necessary.
We are very renewable energy conscious. Our facilities, located in sun-abundant Thailand, obtain 35+% of their daily energy from solar via a 5,280 watt grid-tied solar array.
Additionally, our Cardano servers are all robust refurbished data center spec servers. We recycle spent UPS batteries with a local supplier who gives us deep discounts on recycled replacement batteries. Our efforts reduce fossil fuel energy usage, conserve environmental resources, and reduce technology waste in landfills.
We also have two 100% organic gardens and scores of fruit trees onsite which provide more than 80% of consumed food. Purchased foods are all locally grown/raised. So, in the unlikely event we were to be attacked and surrounded by zombie hordes, know that stake pool operations would continue uninterrupted.