How to Stake with ECO Pool
Delegating your ADA to ECO Pool, or any other Cardano stake pool, is safe and easy. Your funds will always stay accessible in your wallet and you can spend or transfer your ADA any time without affecting the staking rewards you have already earned. You can also undelegate from the current stake pool or change your delegation to a different stake pool at any time.
Choosing your ADA Wallet
Staking is supported by the 2 official wallets for the Cardano ecosystem: Daedalus and Yoroi Wallet. Daedalus is a full node wallet, which means it will download the whole blockchain to your PC/Mac to independently verify the transaction history of the blockchain. Installing Daedalus for the first time and syncing the blockachain will take a few hours since there is quite a few GB of data to download. Your PC needs about 15 GB of free drive space for the installation.
A faster way to get you ADA wallet set up is using the light wallet Yoroi. It is an extension for your web browser and will connect to dedicated EMURGO servers to verify transactions. This means it does not need to download the whole blockchain. There is also a Yoroi Wallet for mobile. Both wallets , Daedalus and Yoroi, are safe and easy to use.
Create a new ADA Wallet
The slideshow below shows the process of creating an ADA wallet using Yoroi for the Chrome browser. Creating a new wallet in Daedalus or Yoroi for mobile is very similar. Once your ADA wallet is created, you can transfer your funds from an exchange to your ADA wallet.
Delegate to ECO Pool
Once your ADA is in your wallet, you are ready to delegate your stake to a Cardano stake pool and earn stake rewards. Your funds will always stay in your wallet while you are delegated to a stake pool. Your ADA is not ‘locked’ while you are delegated and you can send and receive ADA without effecting the rewards you have already earned. Find more details about when your stake will become active below in the section ‘Delegation Cycle’.
How to delegate to ECO Pool:
- Select the ‘Delegation List’ tab of your wallet
- Search in the list of stake pools for ECO!
- ‘Delegate’ will delegate your ADA wallet to ECO Pool. Thanks for your support!
When do I get my first rewards?
When you first start delegating to a Cardano stake pool, it will take some time until your stake becomes active and you receive your first staking rewards. The diagram below shows the Cardano Delegation Cycle. The delegation and rewards system is separated into epochs. Each epoch is 5 days long. This means rewards are automatically paid out every 5 days.
Let’s assume you have started delegating to a stake pool in Epoch 0. There is a snapshot at the end of Epoch 0, which determines the amount of ADA you have in your wallet at that point in time. That amount of stake becomes active in Epoch 2. The rewards you have earned in Epoch 2 are calculated in Epoch 3, and the rewards for Epoch 2 are paid out in Epoch 4. Since one epoch is 5 days long, it takes 15-20 days until you receive your first rewards (depending when in Epoch 0 you started delegating). From then on, as long as your wallet is delegated to a stake pool, you will receive rewards every 5 days.
Redelegating to a different stake pool will not make you lose any rewards. If you change delegation you will still be paid rewards from the previous stake pool for another 3 epochs until the rewards from the new stake pool start getting paid out.
What return can I expect on my stake?
The Cardano protocol automatically calculates and pays out rewards to delegators every 5 days. The return you can expect is around 5% annually. The long term rewards are the same for small, medium or large stake pools, as long as the stake pool produces blocks regularly.
There is a luck factor which determines how many blocks a stake pool gets allocated each epoch. This luck factor can vary much more for smaller pools compared to large stake pools. This means small stake pools can make a lot more blocks than estimated in one epoch, and then fewer blocks in another epoch. However, the overall long term rewards are the same compared to a large stake pool.
Some thoughts on the Daedalus ranking
If you are using the Daedalus wallet, you can find a list of all available stake pools in the Delegation Center. You’ll have probably noticed that there are a lot of stake pools to choose from. You will also find that the first 500 pools are highlighted green to orange and the other 2500 are marked red. This is not because the red 2500 stake pools are not producing any blocks or not giving you any rewards if you delegate to them. It’s because the ranking system in the Daedalus wallet only promotes the first 500 pools, which are often large, almost saturated pools or pool farms. The other 2500 pools are left at the bottom of the list, ranked as 567*. The ranking seems particularly unfavourable for smaller single pools with less stake.
This issue has been widely discussed in the Cardano community to make the Daedalus ranking fairer for all stake pools and give delegators a more realistic picture. Unfortunately at the time of writing this guide, there has not been much progress made towards an improvement.
ECO Pool has been producing blocks consistently for 9 months and has produced over 170,000 ADA in rewards for our delegators. Stake ECO!