NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq

Cardano Holders Disappointed Over Initial 4.6% Estimated Staking Rewards

Samuel Wan
Samuel Wan
5 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

In the countdown to the Shelley mainnet launch at the end of this month, Cardano has released details of its staking reward system.

The amount of staking reward is determined by several factors, such as the number of staking pools in operation, the saturation of a delegated pool, and block production efficiency. At present, all elements are undetermined.

However, based on the default estimates of IOHK, users will receive 4.6% per annum.

Rewards from the Incentivized Testnet (ITN) were between 6% – 8%, depending on individual testnet staking pools. As such, news of a sub-five reward on mainnet is something of a blow for ADA holders.

In response to the announcement, one user wrote:

“Most people were predicting 6-10% and even Charles said in one of his AMAs it would be similar to the ITN. I’m happy with 6% but under 5.. better to sell and buy property.“

Another pointed out that the figure is notional; what’s more, 4.6% is still a better rate than any bank is currently offering.

Cardano staking rewards go live from August 18th, 2020, three weeks after the rollout of Shelley.

Cardano Shelley rollout plan

Source: twitter.com

Cardano Staking Walkthrough

Dr. Lars Brünjes, the Education Director at IOHK, gave an overview of the Cardano staking process, as well as a walkthrough of the staking calculator.

“How are rewards calculated? That happens on an epoch by epoch base. Every epoch, which lasts for five days, rewards are determined and paid to all participants.”

Each stake pool receives a reward determined by factors such as the ADA pledge of the pool, the margin operational costs of the pool, performance in terms of block production efficiency, and the amount staked with the pool.

After all the costs are subtracted, the remaining balance is split proportionally between all delegators.

Brünjes also spoke about the diminishing returns on pool saturation, this process lowers the reward payout if a pool becomes too big. This is currently set at around 0.66%. If a pool controls more than this of the entire stake, then rewards paid to that pool are reduced.

The idea is to incentivize stakers to move funds to smaller pools, in the hunt for better payouts, which also encourages greater decentralization of the network.

Brünjes mentioned that discussions with the community will take place after staking goes live. That way, feedback to change the system parameters can be made.

How Does Cardano Fare Against Other Staking Protocols?

The Cardano community as a whole has reacted unfavorably towards the estimated staking returns.

While the 4.6% figure is based on indeterminate factors at present, it’s still much lower than rewards from other staking protocols.

Matic Network currently pays 53%, based on 18% of Matic staked. This amount will fall as more Matic is staked, but even with 100% of circulating supply staked, the Matic protocol will pay 9.95%.

Source: wallet.matic.network

Tezos is more comparable with Cardano in terms of having similar market cap and volume. Data shows Tezos currently pay a staking reward of 5.48%.

As such, while the Cardano community may be disappointed, the reward level is still in line with expectations.

car

cardano
Cardano (ADA) price sees a minor pullback after reaching multi-year highs. Source: TradingView.com
Tweet123Share196ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Cardano

Cardano Founder Says Chainlink Quoted Them An ‘Absurd Price’, Here’s Why

Cardano’s founder, Charles Hoskinson, has clarified why the blockchain platform was excluded from a prominent US government initiative meant to...

Scott Matherson 2 days ago
Cardano (ADA) Signals Recovery

Cardano (ADA) Signals Recovery – Is a Strong Upside Move Ahead?

Cardano price started a fresh recovery from the $0.780 zone. ADA is now rising and might attempt a clear move...

Aayush Jindal 2 days ago
cardano

Cardano: Γιατί μπορεί να ξεπεράσει τα $15 έως το 2030

Μέσα σε έναν κόσμο κρυπτονομισμάτων που λειτουργεί με ταχύτητα, hype και συχνά πρόχειρες λύσεις, το Cardano επιμένει να ακολουθεί έναν...

Ιωάννης Ριζόπουλος 3 days ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

cardano ada adausd

Cardano Price Prediction: ADA Bears Test Support, Bulls Eye $0.92 Breakout on Hoskinson Boost

James Halver 21 hours ago
Cardano news

Cardano Sentiment Crashes To 5-Month Low As ADA Defends Key Price Level

Jake Simmons 1 day ago
Cardano, ADA, Charles Hoskinson

Cardano (ADA) Redemption Controversy Over? Hoskinson Shares IOG Audit Results

Rubmar Garcia 1 day ago

Premium Sponsors

Press Releases

  • 50万ドル調達の新興プロジェクトが次の大型ミームコイン候補に浮上

    ...

    2 hours ago
  • イーサリアム売却後に注目される次のアルトコイン投資先4選

    ...

    2 hours ago
  • アルトシーズン前に投資候補となる仮想通貨プレセールの紹介

    ...

    3 hours ago
  • 仮想通貨おすすめ:市場回復期に注目すべき銘柄リスト

    ...

    3 hours ago
  • 今日注目すべき1ドル未満の新しい仮想通貨 ― 9月6日版

    今日注目すべき1ドル未満の新しい仮想通貨...

    3 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.