Brunch Staking Pool Plans to Support Cardano (ADA) Development via Higher Fees
Earlier this month, Brunch Pool announced that it plans to offer investors the opportunity to join likeminded stakers who want to help build the Cardano (ADA) ecosystem by paying a percentage of staking rewards to the foundation driving its development.
Introducing Brunch Pool.https://t.co/6cfsnwmEdW
— Brunch Pool | Cardano Stake Pool (@brunchpool) March 9, 2019
Cardano leverages the Ouroboros Proof of Stake Algorithm, a unique PoS protocol based on formal, peer-reviewed academic research that will soon allow investors to earn passive income via staking.
This staking algorithm involves two major types of participants: stakeholders and slot leaders. Nodes on the Cardano network that possess a positive stake are known as stakeholders while nodes that are chosen to form a new block are called slot leaders.
Given that there is an extra incentive to become a slot leader, and that the more ADA held in a node equates to the higher likelihood of this outcome, staking pools are a likely result of the system. However, much like mining pools, typical staking pools rarely do much to drive forward a project’s ecosystem or development.
“The majority of the revenues that Brunch will generate thanks to the pool fees will be directly reinvested in the Cardano ecosystem, which will on a long-term perspective, have a positive impact on the price of ADA,” said the Brunch team in the announcement.
While higher fees might turn off some stakers, the team behind Brunch Pool believes that by giving back to Cardano they will ultimately offset the lost income via long-term ADA price growth. While the exact percentage has not been announced, the Brunch team has stated that it is likely more than 4%.
This news comes as Cardano recently released version 1.5 of its mainnet, which brings the project closer to a newer version of its consensus algorithm that “matches the security guarantees of proof-of-work protocols such as Bitcoin.”
ADA is currently up 9.3% on the day and 15% in the past week to $0.057915 as anticipation grows for staking to go live. The eleventh-largest altcoin now has a $1.5 billion market cap.
More: Introducing Brunch Pool.
Related: Ouroboros Info
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.