Today, we have reduced our pool fees (margin) from 2.3% to 1.9%. Why?
As you know, we have had the support of IOHK for the last 3 months, who have delegated 3.2 million Ada to our pool. This has allowed us to grow the pool and generate blocks on a regular basis. Unfortunately, this delation ends at the end of May, so that our stake then drops to around 4.5 M Ada for the next time, if we don’t get additional stake from new delegators. This is still enough to produce blocks on a regular basis, but our goal is to grow again to > 7 – 10 M Ada, so that our pool lasts permanently, remains a sustainable part of the Cardano network and does not depend on few delegators. Unfortunately, many new delegators pay attention to low fees, so we have also lowered the fees to become more attractive for new delegators. This benefits all delegators, including those who have been with us for a long time.
Since we used to cover our climate protection activities from the fees (so far donation of 50%) and we do not want our donation amounts to be reduced, we have decided to donate 100% (i.e. all of the 1.9% fees) in future. Because then the total amounts for donations will remain comparably high, even after IOHK has left us, and despite the fee reduction.
We hope that this approach will enable us to establish CO2POOL as a permanent part of the Cardano-Stakepool network. We will continue to work for a climate-neutral Cardano blockchain and thank you for your support.
Stefan Rehfus, CO2POOL, 16.05.2021