What is Staking?
Staking or Proof of Stake (PoS) is Cardano's alternative to Bitcoin's Proof of Work (PoW) algorithm. Cardano's blockchain validates transactions by allocating each block to a pool based on the amount of stake (ADA) it has delegated to it. By validating transactions the pool receives rewards which are given out to the delegaters proportionally to how much ADA they have delegated. This system allows for all ADA holders to earn rewards from just holding the token. Unlike Bitcoin's PoW, PoS is an energy sustainable solution to keeping the network secure.
How do I Stake?
To stake, download the Daedalus Wallet or create a Yoroi account then create a Shelley era wallet. Then move your ADA to your new wallet from the exchange or other wallet you have it stored on. Once your ADA is on either Daedalus or Yoroi then go to delegate and select your desired pool. To support the Great Barrier Reef select the CORAL pool to delegate to. That's it! You're now supporting the Cardano network and at the end of your 4th epoch you will earn your first rewards.
Why delegate to Coral Pool?
Coral Pool intends to help preserve and restore the reef by donating the entire 1% margin fee to the Great Barrier Reef Foundation. I chose this foundation above others as they are completely transparent in their work. The Great Barrier Reef Foundation works to help restore the world's largest coral reef by using a technique known as Coral IVF, where coral eggs and sperm are collected and then the larvae are distributed using robots onto damaged parts of the reef. This was first tried in 2016 on Heron Island and now the project has been ever expanding over 2018, 2019 and now previously 2020. I encourage everyone to go to their website and donate directly but the next best thing would be delegating to Coral Pool so that they can get consistent donations from our Cardano Ecosystem.
Who runs Coral Pool?
My name is Zach, I am a university student studying Software Engineering who lives on the east coast of Australia. I first heard about Cardano after being introduced to Charles's youtube channel back in July 2020, since then I have become an avid fan of Cardano despite being relatively new to the ecosystem. I love Charles's vision and wish to be a part of the journey in any way I can while also contributing something new. Living at the beach has let me see first hand the effects of climate change on the ocean and more specifically the Great Barrier Reef. Building Coral Pool has allowed me to start to make a difference by helping to preserve and restore the reef.
The pool is operating on a on-premise dual server setup, with the plan to upgrade to a three server setup in the future.
Block Producer Node:
- Intel i-7 6700k 4.6 GHz | 4 cores 8 threads
- 16gb DDR4 ram
- 256GB SSD
- AMD A10-8750 3.6 Ghz | 4 cores
- 16gb DDR3 ram
- 256GB SSD
Pool splitting and why it's better to delegate to smaller pools:
Ever since the Shelley Mainnet launch in July 2020 the Cardano network has seen the birth of pool splitters. Pool splitters are pool operators who effectively "split" the stake of one pool into two or more pools when they reach maximum saturation allowed by the k parameter (k = 500 meaning 500 pools can be fully saturated). This has a lot of controversy within the community, myself included, as pool splitting does not help the network stay decentralised and reduces the redundancy of the network. If one pool operator has four, five or even six saturated pools running from the same on-premise site, in the event of a power outage, network failure or any other possible scenarios then potentially as much as 384 million ADA could be off the network. It is in everyone's best interest to not support pool splitters and instead support single pools or one step better, support small pools. Supporting small pools that are not built on third-party servers like AWS help keep the network as decentralised as possible.