Governance Actions

Should K increased?

Info action: A poll. It records opinion on chain and changes nothing.

Status

Expired: Voting closed without the action reaching the support it needed.

Proposed

11 Oct 2024, in epoch 514

Action ID

gov_action10lty9xka3unprtvdfrqvcjgsz33sjwhv9p06afqzar8au782trtsq7dhd95

Votes

• DReps: 15.5% yes, 88 Yes · 54 No · 22 Abstain.
• Stake pools: 2.4% yes, 51 Yes · 29 No · 4 Abstain.
• Constitutional Committee: 0% yes.

Abstract

The K parameter was created to limit the total number of ADA staked to one pool. The K parameter determines the saturation of stakepools. To calculate the saturation of stakepools you can take the total number of ADA and divide it by K. K is currently 500, and pool saturation is currently 74,551,771.86 ADA. Pool saturate will increase slightly each epoch as more ADA is minted each epoch from staking rewards.

K also has a large effect on a0. a0 is another Cardano protocol paramter that determines ADA staking rewards per epoch. a0 is currently set at .3. If a stakepool operator pledges the enough ADA to saturate their pool they earn 30% more ADA rewards per epoch. If you pledge half of the pools saturation then any delegates earn 15% more ADA rewards after SPO fees. Smaller pledges have a higher impact on staking rewards with a k parameter that's higher.