Stake rewards formula proposal

The goal of this proposal is to incentive the true decentralization, resilience and independence of the Cardano network. To do this we need stake pools with a good pledge, good size and solid ownership. Also there should be a way for new pools to be able to compete with the existing, on fair playing field.

The reward distribution is a good way to drive people in choosing the right pools, but now we see basically all pools give the same rewards regardless of the committed pledge. The only parameter driving the returns is the size of the pool, the bigger, the better.

So how can we modify the existing formula to achieve the above stated goal?

  • Consider a minimum pledge factor
  • Consider a maximum leverage factor
  • Keep the current saturation limit
Read our proposal here!