Staking Model - ProofofADA/proof-of-ada GitHub Wiki
The Proof of ADA Stake Pool Commission:
Stake Pool Commission
0.00 - 5.00 % , based on price (USD) of ADA and total number of ADA staked
Prices go up. Commissions go down
Staking rewards are paid out at the protocol level on the Cardano blockchain. This means stake pools must select a static stake commission (%) in advance. While stake pools can always update their staking fees over time, Proof of ADA presents a price- and stake-dependent model for reducing stake fees as ADA increases in price. Staking with Proof of ADA offers an automated commission reduction schedule that users know before staking with Proof of ADA.
Everyone's a Whale
What if I'm Not a Whale?
Good.
Proof of ADA will treat you like one.
For any wallet with less than 100,000.00 ADA staked, the wallet receives the same commission reduction schedule as a wallet with 100,000.00 ADA. Proof of ADA hopes this will have the effect of attracting many smaller wallets rather than a few larger wallets.
example: A wallet stakes 5,000.00 to the Proof of ADA stake pool. Proof of ADA stake pool assigns a value of 100,000.00 ADA to the commission reduction function for that wallet.
What if I'm a Whale?
Good.
Proof of ADA will treat you like one.
Zero commission staking is available to larger wallets. Depending on the size of the stake, larger wallets quickly approach zero commissions for staking based on the Proof of ADA staking model.
example: A wallet stakes 10,000,000.00 to the Proof of ADA stake pool. Proof of ADA stake pool will indefinitely offer commissionless staking for ADA prices above 0.75 USD.
Stake Pool Commission Fee Function
'log' is log-10 and is not naturally logarithmic