Staking Pool on Cardano: How to Select

Choosing the right staking pool on the Cardano network is a crucial decision for any ADA holder. The choice you make can significantly impact your rewards and the overall health of the Cardano network. This article aims to provide you with a comprehensive guide on how to select the right staking pool, with a particular emphasis on supporting small staking pools and single pool operators for the decentralization of the blockchain.

hundreds coins flowing into the colorful staking node server over the network from different sides

Understanding Staking and Staking Pools

Before diving into the selection process, it’s essential to understand what staking and staking pools are. Staking involves participating in a proof-of-stake (PoS) blockchain network by holding its cryptocurrency in a wallet to support operations like block validation, transaction verification, and network security. A staking pool is a group of coin holders merging their resources to increase their chances of validating blocks and receiving rewards.

The Role of Non-Custodial Wallets in Staking

To delegate ADA to a staking pool, you need a non-custodial wallet of your own. Non-custodial wallets give you full control over your private keys and funds. They come in various forms, including hardware wallets, browser extensions, mobile wallets, and node wallets. Each type has its unique features and benefits, and the choice depends on your specific needs and circumstances. For a detailed overview of the best Cardano wallets, you can refer to this comprehensive guide. Remember, the safety of your digital assets also depends on how securely you store your wallet recovery phrase. Always keep it offline, in a secure and private location.

Importance of Supporting Small Staking Pools

One of the key aspects to consider when choosing a staking pool is the size of the pool. It’s important to support small staking pools as they contribute to the decentralization and security of the network. Large pools can become oversaturated, reducing the rewards for individual delegators. By delegating to smaller pools, you help maintain a balanced network and increase the chances of earning optimal rewards.

The Role of Single Pool Operators in Decentralization

Single pool operators play a crucial role in maintaining the decentralization of the Cardano network. When you delegate your stake to a single pool operator, you contribute to the distribution of power across the network, preventing any single entity from gaining control. This distribution is vital for the health and security of the blockchain.

Utilizing Pool Tracking Websites

Websites like,, and are invaluable resources when choosing a staking pool. These platforms provide detailed information about each pool, including their performance, reliability, saturation level, and operator details. By using these tools, you can make an informed decision based on the pool’s status and history.

Key Metrics to Consider When Selecting a Staking Pool

When choosing a staking pool, several key metrics should be considered:

  • Return on ADA (ROA): This is the annualized return of your staked ADA. It’s a measure of the pool’s profitability.
  • Lifetime: This refers to how long the pool has been active. A longer lifetime may indicate stability and reliability.
  • Pool Performance: This metric shows how well the pool is performing in terms of producing blocks. A high performance indicates that the pool is effectively contributing to the network.
  • Supporting Decentralization: Choosing a pool that supports decentralization helps maintain the health and security of the Cardano network.
  • Communication with Pool Operator: A responsive and transparent pool operator can provide valuable insights and updates about the pool.
  • Pool Fees: These are the costs charged by the pool operator. Lower fees mean higher returns for you.
  • Pool Size: This refers to the total stake delegated to the pool. A larger pool may have more consistent returns, but it’s important to avoid oversaturated pools.
  • Pool Pledge: This is the amount of ADA the pool operator has committed to their own pool. A higher pledge indicates the operator’s commitment to the pool.
  • Saturation: A pool is considered saturated when it has more stake delegated to it than is ideal. Rewards decrease for everyone in the pool once it becomes saturated.
  • Rank: This is the pool’s ranking based on various factors like performance, reliability, and fees.
  • Live Stake: This is the current total amount of ADA delegated to the pool.

The Importance of Commitment: Stay for at Least 6 Months

When you choose a staking pool, it’s advisable to commit to that pool for at least six months. This period allows you to observe the pool’s performance over multiple epochs (Cardano’s time periods for block production and rewards distribution). Short-term fluctuations in a pool’s performance can be misleading, so a longer commitment gives a more accurate picture of the pool’s reliability and profitability.

Future Changes: Parameter K and Minimum Fee

The Cardano network is dynamic and subject to changes that can impact staking rewards. One such change is the possible adjustment of the parameter ‘k’ and the minimum fee. The ‘k’ parameter determines the optimal number of staking pools in the network, while the minimum fee is the cost that pool operators charge to cover their expenses.

As per the article on the Cardano Foundation’s website, there are discussions about changing these parameters. If these changes occur, it’s important to reassess your chosen pool. If your pool becomes oversaturated due to changes in the ‘k’ parameter, it may be necessary to switch to a different pool to maximize your rewards.


Choosing the right staking pool on Cardano is a critical decision that requires careful consideration. By supporting small staking pools and single pool operators, you can contribute to the decentralization and robustness of the Cardano network. Remember to use pool tracking websites for informed decision-making and commit to your chosen pool for a significant period to accurately assess its performance. Stay informed about potential changes in the network parameters and adjust your staking strategy accordingly. Happy staking!

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