What is Cardano?
Cardano (ada) is a public blockchain that is striving to become a 3rd generation cryptocurrency. It was built from the ground up to solve the inefficiencies of Generation 1 (Bitcoin) and Generation 2 (Ethereum) cryptocurrencies. Inefficiencies such as scalability, interoperability, and sustainability are solved by Cardano’s proof of stake blockchain protocol, Ouroboros:
What is staking?
Ada held on the Cardano network represents a stake in the network with the size of the stake proportional to the amount of ada held. The ability to delegate or pledge a stake is fundamental to how Cardano works.
There are two ways an ada holder can earn rewards: by delegating their stake to a stake pool run by someone else, or running their own stake pool. The amount of stake delegated to a given stake pool is the primary way the Ouroboros protocol chooses who should add the next block to the blockchain and receive a monetary reward for doing so.
Why delegate your ada?
Delegation is the process by which ada holders delegate the stake associated with their ada to a stake pool. It allows ada holders that do not have the skills or desire to run a node to participate in the network and be rewarded in proportion to the amount of stake delegated.
By delegating, you also keep more rewards. Exchanges, like Coinbase, can keep up to 25% of the staking rewards.
Do you keep the ada?
NO!!! We do not hold your ada. Your ada remains in your wallet, and you remain in full control.
Why delegate with smaller pools?
You can help keep the Cardano network decentralized by staking with smaller, single stake pool operators! We use the profit from the pool to increase our pledge, pay for the servers, and give back to the community.