Operate a Cardano Stake Pool No Cost

April 1st, 2019

Zero Cost to Operate a Cardano Stake Pool

From a stake pool desirability perspective, it would appear to make little sense to invest in bare metal computers, global infrastructure, IP transit locations or anything that adds to the operational cost of running a Cardano stake pool.

Why? Because cost impacts your pools desirability number.

Cost Desirability
Up Down
Down Up

We defined cost in our essay on Cardano Stake Pool Variables as:

The cost of operating a pool is its total operating expenses in USD/ADA per epoch.

Why not lie about your pools cost?

I don't see why a non-myopic pool operator wouldn't lie about his costs and run his pool at a loss (charity) with the long-term vision of gaining a lot of delegations. It seems an effective way to get ranked high in attractiveness through lying about costs (set it to zero).
Costs are likely to be a race to zero. And that's not too much of a problem. 1

A stake pool operator has three primary controls that will impact their pools disability:

  1. Cost
  2. Margin
  3. Pledge

The only value a Cardano stake pool operator could lie about will be abused, because they will not understand it, as soon as it gets into decentralized hands.

Sad isn't.

At Adaizen, we're taking the complete opposite approach, see Our Secret Cardano Stake Pool Plan to World Desirability to find out how.

  1. Cardano Stake Pool FAQ on cardano.org site. ↩︎

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