How to choose a stake pool?

When selecting a stake pool, there are key factors to consider. One crucial aspect involves parameters like Return on Assets (ROA) and variable cost.

ROA, representing estimated rewards over a year of ADA staking, relies on the stake pool's previous epoch's block count and the variable cost set by the operator.

With each epoch's first block, the operator earns a fixed cost (min. 170 ADA) ensuring proper node operation and network setup.

Beyond this fixed cost, operators can apply a variable cost to delegators, often for technical enhancements or charitable donations.

Another vital factor is pool saturation, indicating how full a stake pool is. Currently, the saturation point is 73.1 million which means you could be missing out on some rewards if you stayed in an oversaturated pool. This calculation was designed by the Ouroboros protocol to ensure and incentivize decentralization.

For optimal rewards, aim for high ROA and low pool size, ensuring consistent block minting. Alternatively, support missions by exploring pools aligned with your interests while staking ADA for rewards. You can see the list of mission-drive pools here.

Updated on: 14/08/2025