Frequently asked Questions
1. What is a stake pool?
The Cardano network operates on a decentralized blockchain. Unlike Bitcoin, the Cardano blockchain is not maintained and secured by miners, but by stake pools. These have the task of verifying transactions and then storing them in secure data blocks in the blockchain. When a stake pool mines a block, it is rewarded by the network with ADA coins. The advantage of stake pools is that they do not require the same computing power as bitcoin mining and therefore consume thousands of times less energy.
2. Is my reward, in form of interest, as a stakeholder guaranteed?
No! The reward is distributed only in case MINI POOL has successfully created a block on the blockchain. So if MINI POOL makes profit, all its stakeholders make profit too.
3. How much is my interest rate, in case MINI POOL creates a block?
As a reference, the interest rate is between 4 - 6% annually. The exact amount is calculated automatically by the Cardano protocol and is based on the profit of the stake pool minus fixed costs and margin. The remaining amount is distributed to the stakeholders proportionally to the respective staked amounts.
3. What is the smallest amount to start staking with MINI POOL?
There is no minimum amount. You can stake any amount provided that the transaction fees can be covered by your wallet.
4. Can I lose my staked ADA Coins by staking?
Staking in itself does not lead to any loss of coins. In the worst case, no interest is paid out.
5. Can I spend my staked ADA coins whenever I want?
Yes! The staked coins are not locked and so they are always available in your personal Deadalus wallet. You can transfer them to another wallet or just spend them. Just bear in mind that the less coins you have in your staked wallet, the lower the absolute interest rate will be.
For any other question, feel free to contact us.