Frequently asked questions
When you stake your ADA with a staking pool, you tell the whole network that you trust that pool to represent your stake in Cardano – your ADA funds. Your ADA never leaves your wallet and the pool cannot spend it. However, the more trust a pool has (#ADA it represents), the more the protocol trusts that pool and assigns more blocks for the pool to sign.
As compensation for your efforts to promote a healthy network, the protocol shares the rewards of the pool with its participants based on the stake they assigned to that pool and the number of blocks the pool successfully signed within a 5 day period (epoch).
Because a pool needs to represent a certain amount of stake to be able to participate in the block creation process, this mechanism is called Proof-of-Stake. Bitcoin, and most other projects in the space, use Proof-of-Work instead.
No you can’t lose ADA by staking. Fees are substracted only from the rewards that are being created by the stakepool.
You cannot have less ADA than you started with.
Yes, only the wallet is delegated and the pool never gets to control your ADA. You remain in control of your tokens at all times.
The minimum for staking is 10 ADA
You can stake using a Ledger. There is a dedicated section in Yoroi/Daedalus for that.
You can switch from another pool without losing any rewards.
Yes, your ADA will be automatically deducated from your wallet and the remaining amount will stay staked with your pool.
You can expect 5.5% reward per year on average. This is set by the protocol and is subject to slightly diminish over time.
Rewards are distributed at the end of each epoch. However note that there is a 2 epoch « delay » between producing a block and the distribution of its rewards. If a block is produced during epoch 0, the rewards are distributed at the begining of epoch 2.
Rewards are distributed at the end of each epoch. However note that there is a 2 epoch « delay » between producing a block and the distribution of its rewards.
If a block is produced during epoch 0, the rewards are distributed at the begining of epoch 2. If you delegated your wallet for the first time, it takes 2 epochs to be effective. In total, you have to wait 4-5 epochs before you receive your first rewards
Yoroi if you want a lightweight wallet (chrome extension)
Daedalus if you have a PC (requires to sync with the blockchain)
Binance, Coinbase Pro, Kraken.
A recovery phrase or recovery phrase is a set of 24 words that allow you to recover your wallet from any place in the world. Never share this with anyone and store it in a safe place. If you lose it, you won’t be able to recover your wallet EVER.
Our servers are located in France and Australia, and we have hidden relays to prevent from outsider attacks.
You can use multiple wallets to spread your holdings in case of a hack. However this requires more work in maintaining keys, recovery phrases etc. Daedalus and Yoroi are very safe to start with, make sure your PC doesn’t have any malware of virus.