Guide · Cardano

Stake Pool: How It Works and How to Choose the Right One

A stake pool is an always-on server that produces new blocks in a proof-of-stake network such as Cardano. ADA holders delegate their balance to a pool without giving it away. The more ADA a pool represents, the more often it gets to produce blocks – and the rewards are shared between operator and delegators every epoch.

This page explains how a stake pool works technically, which metrics really matter, and how to recognise a good pool. Use the pool check to rate any Cardano pool against these criteria.

Last updated: 15 October 2026 · Neal A. Morrison

Basics

How a stake pool works

Cardano uses the Ouroboros Praos consensus protocol. Instead of computing power as in Bitcoin, the share of staked ADA decides who may produce the next block. Stake pools take on this job.

1
Delegate

A single transaction links your wallet to a pool. Your ADA never leave your wallet and remain freely available at all times.
2
Pool the stake

The pool represents the stake of all delegators plus the operator’s own stake (pledge). A snapshot of the distribution is taken at the start of every epoch.
3
Produce blocks

For every slot (one second), Ouroboros draws which pool may produce a block. The chance is proportional to the pool’s stake.
4
Share rewards

Each block earns rewards from transaction fees and the ADA reserve. After the operator’s fixed cost and margin, they go to all delegators pro rata – automatically, every five days.

First rewards arrive about 15 to 20 days after delegating, then every epoch. For the exact timeline and a step-by-step guide see Cardano staking. Official details: Cardano docs on stake pools and on delegation.

Tool

Pool check: rate any Cardano stake pool

Enter a ticker or pool ID. The pool check rates the pool against the criteria below – with the same rules for every pool, including our own. HAMDA is preselected.

HAMDA Hamster Stake Pool

Pool ID: pool1hvevy8qu5lwg7ul66xmzvwv8zwdgdradsg9ncvrflm7dvy407e0

Live stake: 237,289 ADA
Delegators: 70

Margin good

0 %

Low – the operator keeps at most 1 % of rewards after fixed cost.
What does this mean?
Fixed cost per epoch good

170 ADA

Protocol minimum of 170 ADA.
What does this mean?
Pledge good

78,000 ADA

Pledge met – the operator holds at least the promised amount in the pool.
What does this mean?
Saturation info

0.3 %

Small pool – blocks and rewards arrive less regularly and the fixed cost weighs more. It does strengthen decentralisation, though.
What does this mean?
Lifetime blocks good

131

The pool has produced blocks.
What does this mean?
Status good

Actively registered.
What does this mean?

View in explorer Data: Koios, synced every 6 hours

The traffic lights reflect our rules of thumb and are not financial advice. Things like multi-pool operators, communication and governance behaviour cannot be checked automatically – have a look at the pool’s website.

Delegate to HAMDA – here’s how →

Choosing

How to recognise a good stake pool

There is no single “best” pool for everyone. These metrics, however, decide how much reaches you and how reliably a pool operates.

Margin (variable fee)

The margin is the percentage of rewards the operator keeps after the fixed cost. 0 % to 1 % is cheap; many pools charge between 1 % and 3 %. A 100 % margin means delegators get nothing – such “private” pools are not meant for public delegation.

Fixed cost

In every epoch in which a pool earns rewards, the fixed cost goes to the operator first. The protocol requires at least 170 ADA (parameter minPoolCost). In large pools this amount is spread across many delegators; in small pools it takes a larger share of the rewards.

Pledge (operator’s own stake)

The pledge is the amount the operator puts into their own pool. A higher pledge slightly increases rewards (parameter a0 = 0.3) and shows the operator has skin in the game. Crucially, if the operator does not honour the pledge, the whole pool earns no rewards for that epoch. More in the Cardano docs on pledge and rewards.

Saturation

To spread stake across many pools, Cardano rewards each pool only up to a saturation point. It equals the total amount of ADA divided by the parameter k (currently 500) and is currently above 70 million ADA. Beyond it, rewards per ADA decrease. Very small pools are the other extreme: they rarely produce blocks, so rewards fluctuate strongly – though this evens out over time.

Block production and reliability

Rewards are only paid for blocks produced. A pool should therefore have a track record of producing blocks and stay online at all times. You can check a pool’s history in an explorer – for HAMDA, e.g. on cexplorer.io or adastat.net, or in our pool statistics.

Status and operator

A pool can announce its retirement (“retiring”). Your ADA are not at risk, but rewards stop – you have to redelegate yourself. Also check whether an operator runs many pools at once: single-pool operators strengthen Cardano’s decentralisation.

Transparency and governance

Since the governance upgrade based on CIP-1694, stake pools vote on certain governance actions. A good operator discloses how they vote and is reachable. See how HAMDA votes on the governance page.

Comparison

Stake pool, exchange or your own pool?

There are three ways to take part in staking with ADA. They differ mainly in who controls your coins.

	Delegating to a stake pool	Staking via an exchange	Running your own pool
Control of keys	You (own wallet)	The exchange	You
Lock-up	None	Depends on exchange	None (500 ADA pool deposit)
Cost	Pool fixed cost + margin	Exchange commission, often higher	Servers, time, know-how
Effort	Delegate once	Very low	High, 24/7 operation
Contribution to decentralisation	High with small pools	Low (stake concentrated at few exchanges)	High

Context

Stake pools in other networks

The term “stake pool” is not unique to Cardano, but the models differ considerably:

Cardano

Delegation straight from your own wallet, no lock-up, no slashing. Pool fees are set on-chain and visible to everyone.

Ethereum

Running your own validator requires 32 ETH. With less, people use staking pools or liquid staking providers that issue tokens in return. Misbehaviour is punished by slashing. More at ethereum.org.

Solana

Delegation to validators through so-called stake accounts. Activating and deactivating each take one epoch (roughly two days).

Safety

Myths and risks

MythMy ADA are locked while staking.

FactNo. On Cardano your ADA stay in your wallet and remain freely available.
MythThe pool operator can access my ADA.

FactNo. You only delegate the voting weight of your stake. Your private keys never leave your wallet.
MythIf the pool misbehaves, I lose ADA (slashing).

FactNot on Cardano. Worst case, you receive no rewards for an epoch.
MythIf a pool retires, my money is gone.

FactNo. Only the rewards stop. Simply delegate to another pool.
MythThe biggest pool pays the most.

FactNot necessarily. Oversaturated pools even pay less, and large pools weaken decentralisation.

The real risks lie elsewhere: fake wallet apps, phishing sites and “support” messages asking for your seed phrase. No legitimate stake pool will ever ask for your seed phrase.

Advanced

Running your own stake pool

A Cardano stake pool consists of a block-producer node and several relay nodes running around the clock. Registration requires a 500 ADA deposit, refunded on retirement. On top come server costs, monitoring and regular maintenance – such as rotating the KES keys roughly every 90 days and updating nodes for hard forks.

Without Linux experience and enough stake to produce blocks regularly, it rarely pays off. How HAMDA has been run since March 2021 is told in About me; the tools we work on are listed under Projects.

FAQ

Stake pool FAQ

What is a stake pool in simple terms?

A stake pool is a server that produces blocks for a proof-of-stake network such as Cardano. ADA holders delegate their balance to the pool and receive a share of the rewards in return, without giving away their ADA.

Is delegating to a stake pool safe?

Yes. On Cardano your ADA stay in your own wallet. The pool gets no access to them, and there is no slashing.

How much does a stake pool earn in rewards?

The annual return on Cardano is in the low single-digit percentage range and slowly declines as the ADA reserve shrinks. How much reaches you depends on fixed cost, margin, pledge, saturation and luck in block assignment.

How long until the first rewards?

About 15 to 20 days after delegating. After that, rewards arrive automatically every five days, i.e. every epoch.

Does delegating cost anything?

The first delegation locks a 2 ADA deposit, refunded when you deregister, plus a small transaction fee. Ongoing costs are only the pool’s fixed cost and margin, deducted directly from rewards.

Can I switch stake pools at any time?

Yes. You can redelegate at any time. Rewards from the old pool continue for the epochs already in progress, so there is no gap.

What happens if my stake pool is oversaturated?

If a pool’s stake exceeds the saturation point, rewards per ADA decrease for all delegators. Switching to a less saturated pool then pays off.

Do I also need to delegate to a DRep?

Since the Plomin hard fork, withdrawing rewards requires the wallet to also be delegated to a DRep (or to choose “Abstain” or “No Confidence”). This is independent of your stake pool choice.

Glossary

Epoch: A period of five days. Each epoch, the stake distribution is recorded and rewards are paid.
Slot: One second. Roughly every twentieth slot produces a block.
Delegation: Assigning a wallet’s stake to a pool without transferring any ADA.
Pledge: The operator’s own stake that they commit to keep in the pool.
Margin: The operator’s percentage fee on rewards after fixed cost.
Fixed cost: Flat fee per epoch, at least 170 ADA.
Saturation: A pool’s stake relative to the saturation point (total ADA divided by k).
k parameter: Protocol parameter for the target number of equally sized pools, currently 500.
ROS / ROA: Return on stake: delegators’ annual return in percent.
SPO: Stake pool operator, the person or team running a pool.