With Cardano the impact of pool fees on rewards reduce as stake increases, up until the saturation point is reached. For these reasons a flat fee approach is sub-optimal, they reduce rewards when a pool is small and needs to grow and they offer no resistance to reward killing over-saturation as they get too big.
Why our fees are better than flat fees:
- Encourages growth, no fees until pool exceeds 10% saturation
- Low fee of 1% between 10 to 65% saturation
- Gears pool towards optimal stake and therefore optimal rewards
- Increased Saturation Protection as stake grows too large
- No surprises
| BIRD Pool Saturation | Margin Fee | Up to Stake |
|---|---|---|
| 0 - 10% | 0% | 6.34M ₳ |
| 10% - 65% | 1% | 41.21M ₳ |
| 65% - 80% | 2% | 50.72M ₳ |
| 80% - 95% | 3% | 60.23M ₳ |
| + 95% | 5% | ∞ |
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Saturation Protection
Without a saturation mitigation strategy even a 0% pool is likely to be less profitable over the long term, the slower the pool recovers from over-saturation the more devastating the losses. Critically even the most active stakers are slow to react as they don't realize the drop in rewards until it hits their wallets 2 epochs later!
With Saturation Protection our pools automatically regulate stake via a progressive fee structure which ramps up in the final 5% of saturation. This brings back delegation towards an optimal stake preventing the pool from reaching over-saturation which massively impacts rewards.
- Enables highly profitiable set and forget staking
- Actively combats over-saturation - before it impacts rewards
- Discourages new stakers when pool is under threat of saturation
- Encourages active stakers to migrate before pool becomes saturated
Pool Comparison
Rewards per epoch comparison between BIRD pool and various flat fee pools with a personal stake of 100K ₳, comparison does not track rewards lost due to over-saturation!
| Saturation | BIRD Pool | 1% Pool | 2% Pool | 3% Pool |
|---|---|---|---|---|
| 10% | 73.36 ₳ | 72.57 ₳ | 71.79 ₳ | 71 ₳ |
| 65% | 77.11 ₳ | 77.11 ₳ | 76.32 ₳ | 75.54 ₳ |
| 80% | 76.48 ₳ | 77.26 ₳ | 76.48 ₳ | 75.69 ₳ |
| 95% | 75.80 ₳ | 77.37 ₳ | 76.58 ₳ | 75.80 ₳ |
| Saturation Protection | Yes | No | No | No |
