Frequently Asked Questions

What is Cardano?


Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.

With a leading team of engineers, Cardano exists to redistribute power from unaccountable structures to the margins – to individuals – and be an enabling force for positive change and progress.

To view Cardano’s list of use-case please follow this link: https://cardano.org/enterprise/




What is ADA?


ADA is a digital currency. Any user, located anywhere in the world, can use ADA as a secure exchange of value – without requiring a third party to mediate the exchange. Every transaction is permanently, securely, and transparently recorded on the Cardano blockchain.

Every ADA holder also holds a stake in the Cardano network. ADA stored in a wallet can be delegated to a stake pool to earn rewards – to participate in the successful running of the network – or pledged to a stake pool to increase the pool's likelihood of receiving rewards. In time, ADA will also be usable for a variety of applications and services on the Cardano platform.




What is Cardano Staking?


ADA held on the Cardano network represents a stake in the network, with the size of the stake proportional to the amount of ada held. The ability to delegate or pledge a stake is fundamental to how Cardano works.

The amount of stake delegated to a given stake pool is the primary way the Ouroboros protocol (the first blockchain protocol to be based on peer-reviewed research) chooses who should add the next block to the blockchain, and receive a monetary reward for doing so.

Blockchain transactions are validated by “epoch slot leaders.” These are the stake pools that are selected for the given five-day time periods, or epochs. Slot leaders are responsible for creating new Cardano blocks and validating them. In return for this work, the pool is awarded ADA coins to distribute to their stake pool delegators.

The more ada stake delegated to a stake pool (up to saturation), the more likely it is to make the next block. Rewards are shared between everyone who delegated to that stake pool.

Delegation is the process by which ada holders delegate the stake associated with their ADA to a stake pool. It allows ada holders to participate in the network and be rewarded in proportion to the amount of stake delegated. There is NO security risk for the user as you are not sending any funds to our pool, just delegating your account.

Incentives are used to ensure the longevity and health of the Cardano network and ecosystem. The incentive mechanism is underpinned by scientific research that combines mathematics, economic theory, and game theory.




What is Stake Pool Saturation?


Saturation is a term used to indicate that a particular stake pool has more stake delegated to it than is ideal for the network, and once a pool reaches the point of saturation it will offer diminishing rewards. The saturation mechanism was designed to prevent centralization by encouraging delegators to delegate to different stake pools, and operators to set up alternative pools so that they can continue earning maximum rewards. Saturation, therefore, exists to preserve the interests of both ADA holders delegating their stake and stake pool operators.

The goal is to avoid any single pool becoming too large – thereby disincentivizing delegation to other pools and receiving a disproportionate amount of the rewards. The health of the network is partly determined by having a high number of active stake pools with a balanced amount of stake delegated to them.




What is a Cardano Epoch?


Cardano’s Ouroboros protocol divides up its delegation staking rewards across five-day periods called epochs. These epochs are the periods during which different stake pools compete with one another to earn slot leader designation, which lets them create and validate new blocks.

ADA rewards are disbursed after every epoch.




What is Proof-of-Stake?


In proof of work, miners invest computing power to compete to be chosen as the leader who gets to make the next block and win a reward for doing so. By contrast, in proof-of-stake, the stakeholder who will form the next block is randomly selected, proportionally to the size of the stake that they have, according to the blockchain ledger.

“Proof” means having evidence that blocks of transactions are legitimate. “Stake” means the relative value held by addresses on the node. “Relative value” is all the value held by wallets on a particular node divided by total value in the system.

There have been a number of attempts by other cryptocurrencies to develop a proof of stake algorithm, although these protocols have suffered from flaws and have not been shown to be provably secure.

For a blockchain to be secure, the means of selecting a stakeholder to make a block must be truly random. An innovation of Ouroboros to produce the randomness for the leader election process is to do this by way of a secure, multiparty implementation of a coin-flipping protocol.




Cardano Staking Rewards


As a reward for their community assistance, those involved in staking Cardano, ADA, will earn passive income in the form of more ada tokens whenever their delegate pool validates a block. To get these rewards you must delegate your ada to a Cardano proof-of-stake pool such as ADA 180 [A180]. The ADA Cardano staking model allows everyone who owns ADA to contribute and benefit.

Cardano staking rewards are distributed automatically. You do not have to take any action to claim your rewards. Rewards are earned at the end of each epoch, which lasts for 5 days. If newly delegated to a stake pool it may take 15 to 20 days to see your first epoch reward




What Happens to My ADA When I Delegate My Cardano Stake?


When you delegate to ADA 180 [A180] stake pool, your ADA never leaves your wallet. First and foremost, we want to convey that when you delegate your stake, you are NOT giving anyone access to, or control of your ADA tokens. We never have any access to your coins. Delegating your stake to any pool does not require you to send your ADA.

Delegation is facilitated using the Ouroboros protocol. This is the very first peer-reviewed research based provably secure proof-of-stake blockchain protocol. By design, the protocol protects your ADA from being accessed by any stake pool operator or member.

Your delegation essentially translates into a vote for ADA 180 [A180] stake pool to contribute to the blockchain and earn Cardano staking rewards. Delegating to a stake pool only means you give the stake pool proxy to mint blocks on your behalf. When you delegate your stake, your ada is not moved out of your wallet and is not tied up or locked while it is delegated.




Are There Cardano Transaction Fees When Staking to a Pool?


When you delegate your ADA to a stake pool, you will pay a nominal transaction fee (.17 ada). The very first time you delegate your stake you will also pay a 2 ADA deposit which is returned to you when you undelegate your funds.




How Often Will I Get Staking Rewards for ADA?


When staking Cardano, rewards will be disbursed after every epoch, or every five days. The current model indicates that those who participate in ADA staking will earn a return of about 5% on their investment annually.




Will the ADA Rewards I Earn Be Added to My Delegated Stake?


Rewards earned accrue with your original stake. When rewards are received, the balance of your reward account increases – and, consequently, the delegated stake is increased.




How to Stake with Yoroi Wallet


1. Download the Yoroi Light Wallet at yoroi-wallet.com.

2. Choose your preferred browser option after clicking the download button.

3. After adding it to your browser, launch the Yoroi Wallet extension within the browser.

4. Simply follow the instructions to connect / create / restore your Cardano wallet.

5. Make sure you have ADA in your wallet. You may fund your wallet by creating an address in the "Receive" tab.

6. Go to the "Delegation List" tab, and search for "A180".

7. Select A180 and click the "Delegate" button.

You may now go to the "Dashboard" tab to track your rewards.




How to Stake From Daedalus wallet?


1. Download the Daedalus Wallet at daedaluswallet.io.

2. The first time launching the wallet, you will need to wait for Daedalus to sync with the blockchain.

3. After Daedalus finished syncing, simply follow the instructions to create / restore your wallet.

4. Make sure you have ADA in your wallet. You may fund your wallet by creating an address in the "Receive" tab.

5. Click the second button in the left panel and select the "Stake Pools" tab.

6. Search for "A180" and click the "Delegate to this pool" button.

You may now go to the "Rewards" tab to track your rewards.





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