Input Output & Cardano Foundation Announce Initiatives Exploring Stake Pool Incentives for Smaller Pools

Input Output & Cardano Foundation Announce Initiatives Exploring Stake Pool Incentives for Smaller Pools

In 2025 two of the three founding entities launched initiatives to help smaller stake pool operators. You can read the announcements by each entity below.


Input Output's Announcement:


"Revised stake pool incentive scheme – fostering ecosystem diversity

Smaller stake pool operators (SPOs), especially single pools, often struggle to compete with larger multi-pool operations. This can reduce diversity and make it harder for new SPOs to join the Cardano ecosystem.

This project will explore providing incentives for smaller pools, considering existing proposals, and identifying potential improvements. The community will benefit from greater diversity in stake pool offerings and healthier small pools, while stake pools themselves will thrive in a fairer and more equitable playing field."


Cardano Foundation's Announcement:


"SPI-1: Revised Stake Pool Incentive Scheme

Problem Statement:
Smaller stake pool operators, especially those with single pools, are unable to compete with larger, especially multi-pool operations. This reduces diversity and choice, making it harder for new pools to enter the Cardano ecosystem.

Description: Several proposals have been made to adjust the current stake pool incentives scheme. A particular concern is that of providing smoother incentives for smaller pools. This project will investigate this important issue, considering the merits of existing proposals, identifying possible improvements to the current scheme with costs/benefits, and outlining a development plan if successful.
Benefit: The community will benefit from greater diversity in the stake pool offering, with healthier small pools. Stake pools will benefit from fairer treatment.

Dependencies: There are no direct dependencies

2025 Deliverable: Design evaluation/discovery that can lead into further implementation if successful. Small changes to the existing incentives scheme, if appropriate."


Sources:

Input | Output Engineering:
https://iohk.io/en/blog/posts/2025/06/26/shaping-cardanos-future-input-output-engineering-development-proposal/

Cardano Foundation:
https://x.com/intertreeJK/status/1854554095044141227