PLANETSTAKES' POOLS AND RATES
At PlanetStake we believe it's right to provide you with options, allowing you to choose the stakepool that best fits your staking needs.
As the number of Stakepool's on the Cardano network increases, the number of blocks available for creation in each epoch stays the same. Every block assignment slot is entered into it's own lottery and can be won by more than one stakepool. Winning a block assignment slot entitles each winning stakepool to compete in creating the block contained within that timeslot, the winner of each block competition winning the rewards contained in that block. The more blocks and so the more rewards a stakepool wins, the more rewards it can pass onto it's delegators.
As block creation is a competition it is very important that stakepools remain competitive. Having the best setup dos not guarantee a stakepool block creation victory, but it definitely does increase the probability they will win.
For a stakepool to win the block creation competition it needs to achieve the following several things quicker than any other stakepool it's competing with for that block:
Be connected directly to the last stakepool that created the winning block in the network
Create the new block information
Send the new block infomation to the majority of stakepools in the network
So to be competitive a stakepool must have multiple Relay Nodes and it must have great hardware, which directly influences a stakepool's fees.
Below is PlanetStake's fee structure for it's pools. The below example assumes each of PlanetStake's stakepool's are in competition with each other for 500 blocks, with each block containing 1000 ADA rewards. We hope this helps explain why we feel our 5% STAKE pool is the best value for money.
This is our best value pool. It has 5% fees but this allows us to operate it with 5 nodes, making it a powerhouse at creating blocks and claiming block rewards.
This pool operates with a single node. This makes it less likely to create blocks whc is why the fee for this pool is only 1%
This pool operates with 2 nodes. This makes it less likely to create blocks which is why the fee for this pool is only 2%
This pool operates with 3 nodes. This makes it less likely to create blocks which is why the fee for this pool is only 3%
This pool operates with 4 nodes. This makes it less likely to create blocks which is why the fee for this pool is only 4%