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.
03. Background
Learn more about parameters, common misconceptions and the foundations of our initiatives.
CPS-0022: Lost Stake
The umbrella term “Sticky Stake” is used for any stake that stubbornly remains delegated, regardless of whether its owner is still around. This Cardano Problem Statement (CPS) zooms in on the most critical slice of that phenomenon that we dubbed “Lost Stake.”
Misconception: if K is raised to 1,000 pool rewards and SPO revenue will be cut in half
Half the saturation means half the people to split rewards with, meaning rewards remain about the same.
Understanding a0 in Cardano’s RSS
Understanding a0 helps SPOs and delegators make informed decisions about pool setup and delegation strategy.
Misconception: pool min fee is applied to all blocks in an epoch
In reality, min pool fee is only applied once an epoch and is, in essence, a tax on the first block minted in an epoch.