WELCOMECARDANO SOUTH FLORIDA ZOOM MEETUP

STAKING REWARDA LONG-TERM REWARD STRATEGY

Hassan Michael

❑ CSF Meetup organizer

❑ Cardano evangelist & enthusiast

❑ Experienced software developer

❑ Graduated Florida International University

❑ Earned several blockchain certificates

❑ Blockchain entrepreneur

❑ DApp360 (D360) Stake Pool Operator

❑ Originally from Liberia, West Africa

CONTACTS❑ Telegram: @DAPP360_MIKE

❑ Twitter: @DAPP360_MIKE

❑ Email: HMICHAEL@DAPP360.CO

Matthew Consolo

❑ CSF Meetup co-organizer

❑ Cardano enthusiast & entrepreneur

❑ Experienced DevOps engineer

❑ DApp360 (D360) stake pool operator

❑ South Florida resident

CONTACTS

❑ Telegram: @DEADPOOL217

❑ Twitter: @MATTHEW_CONSOLO

❑ Email: MCONSOLO@DAPP360.CO

Taryn Koshelnik

❑ CSF Meetup co-organizer

❑ DApp360 Marketing & Relationship Manager

❑ Former consultant – Unilever, Bacardi, P&G, etc.

❑ Experienced Project manager & Business Admin

❑ Event coordinator & Organization support

❑ Founding member of multiple companies

❑ DApp360 (D360) Stake Pool Team member

❑ From South Africa, now resides in South Florida

CONTACTS

❑ Email: TARYN@DAPP360.CO

Cardano South Florida (CSF)

INTRO

➢ A South Florida based and operated Cardano community

➢ Started in 2018 with just 2 members at the first meetup

➢ There are currently 190 members in CSF Meetup community

GOALS

➢ Nurture individuals who are interested in the Cardano ecosystem

➢ Foster the growth and adaption of Cardano blockchain and ADA

➢ Grow CSF to a 500 member community by December 2021

➢ Provide an anchor point for everything Cardano in South Florida

MEMBERS BENEFITS

• Provide CSF members with Cardano subject matter experts

• Locally host exclusive social and networking events for crypto

• Provide learning and educational resources exclusively on Cardano

OUR HOPE

1. Help you identify important factors that affect your reward

2. Help you plan a long term strategy for staking reward

3. Help you maximize your staking reward

AGENDA

I. Staking reward - Some Basics

II. Why consider staking rewards

III. Some important facts about reward & ROS

IV. Analysis of Reward % - BIG POOL versus small pool

V. What is a long-term strategy for staking reward

VI. Key factors influencing a long-term reward strategy

VII. Long-term strategy checklist for staking reward

VIII. Question & Answers

WHAT IS CARDANO STAKING REWARD?

Staking rewards are compensation or incentives that are given to ADA

holders in exchange for their participation in the decentralization of

Cardano blockchain

WHERE DO REWARDS COME FROM?

➢ Cardano monetary expansion reserve

ADA reserve for initially sustaining the network in its early stages of

deployment and growth

➢ Treasury

Fees deposited into the treasure that is collected from every network

transactions

Staking Reward – Some Basics

Why Consider Staking Reward?

EXTREMELY HIGH RETURNS

➢ Cardano’s annualized staking reward returns an average of about 5%

➢ According to Bankrate.com, best APY for online banks savings account is 0.83%. (Yearly)

https://www.bankrate.com/calculators/savings/simple-savings-calculator.aspx

➢ Savings account returns from traditional bank like BOA saving account around .01% to .05%.

POTENTIAL & EXPONENTIAL ASSET APPRECIATION

➢ Rewards are paid in ADA – which appreciate in monetary value as the network becomes more useful and widely adapted

➢ ADA has a huge upside to appreciate with the implementation of smart contracts and Dapps technologies

Delegate you stake (ADA held by you) to a stake pool of your choice

How to earn staking reward

Reward & ROS – Important Stats

➢ Reward Minimum & Maximum Annualized %

Minimum – 0%Maximum – Average about 5%.

https://cardano.org/calculator/?calculator=operator

➢ Epoch Reward Pot Current Reward Pot: 31.5m – (changes from one epoch to another)

https://PoolTool.io

➢ Saturation PointSaturation is currently at 210 Million – (changes base on total stake)

https://PoolTool.io

➢ Reward period after switching from one pool to another20 days or 4 epochs not including the epoch in which you stake

https://forum.cardano.org/t/the-shelley-hard-fork-all-you-need-to-know/36553

III. Reward

Long term factors to consider

➢ Saturationover the limit, reduction in rewards

➢ Performance track record Poor performance (block production), poor rewards

➢ Possibility of pool retirement vs continuityStake pool operator could retire a stake pool for several reasons

➢ Stake sizeSmaller pools could lose all their delegates Larger pools could reach saturation faster

➢ PledgePledge perimeter could increase, negatively affecting pools with little pledge amount

➢ Pool switching frequencyFrequently switching from pool to pool is risky due to blocklottery.

Long Term Strategy - Duration

WHAT IS A LONG-TERM STAKING REWARD STRATEGY?

➢ Long-term strategy is an annual strategy in which an ADA holder

delegates his/her stake to the same stake pool with the same fees

and same performance for at least a year.

Why a year

A year averages out Cardano lottery fluctuation in blocks assigned to a

stake pool

To reap maximum reward, Cardano staking calculator estimates same

pool, same fees, good pool performance for 365 days.

Long term stress-free reward checklist

✓ FURTHER AWAY FROM SATURATION

Select a small pool with enough stake to make blocks every epoch. This strategy keeps you from having to switch pools frequently which can be stressful.

✓ AVOID FREQUENTLY SWITCHING POOLS

Switching pools delays your rewards. As we saw earlier, every time you switch to a new pool, it takes 4 epochs (20 days) before you receive your reward from the new pool

The grass may be greener for the epoch in which you switch pools but may not be greener when your stake is active with your new pool. Block assignments to stake pools are based on a randomized lottery system that is not controled by any stake pool.

✓ REAL-TIME BOT UPDATE

Make sure your selected pool has a real-time update bot. Pool update bots make life easy for you by automatically updating you about your pool performance and metrics. You don’t have to go searching websites.

Long term stress-free reward checklist

✓ ACCEPTABLE (NOT NECESSARILY THE LOWEST) FEES

Select Pools with low fees and low cost

✓ HIGHER PLEDGE

Higher pledge amount equates to better rewards for the poolMore of the SPO’s skin in the game, less likely the pool will be retired

✓ Know your SPO (Stake pool operator)

Knowledge of your SPO can help you build trust and relaxStake pools with two or more operators ensures continuity or longevity

✓ Contribution to the Cardano Community

Pools contributing to the Cardano community are more likely in it for the long term which may be a sign of longevity

Questions & Answers

CSF ANNOUNCEMENTS

• Release of new website for Cardano South Florida members

• In need of a volunteer to webmaster or maintain our new website

• Nominate us for Cardano ambassadorship as Meetup Organizer

*Please let us know and we will tell you how to nominate us*

• Accepting topic suggestions for the next Zoom event

Happy Stake-Delegating