On-chain governance action (Parameter Change).
This governance action proposes reducing minPoolCost from 170,000,000 Lovelace (170 ada) to 75,000,000 Lovelace (75 ada), a decrease of approximately 55.9%. No other protocol parameters are changed by this action.
stake1uygyajn4dq8smt779tyaf7f8ha2x5veyuehmtd9lvy8kjjqwmde62Frozen. On-chain rationale, submitted 1h ago.
Reducing minPoolCost to 75 ada eases a fixed fee that disproportionately penalises small pools, helping them stay competitive.
This governance action has a CIP-179 survey linked to it. Eventually, most governance tools should support these surveys directly in the UI while you are casting your vote.
However, in the meantime you can also cast your vote on this survey here:
https://tessera-mainnet.matthieu-pizenberg.workers.dev/survey/ae8683acd550d7448fbd790c6f3b3b8ac7c90dc482faccc0eeedc21d7c8fc217%3A0
It also allows regular ADA holders (i.e., stakeholders) to vote in addition to DReps, SPOs, and CC members.
Frozen. On-chain rationale, submitted 36m ago.
Generating enough transaction fees for Cardano to sustain itself is one of the toughest challenges we face. But there are two sides to the equation. Network revenue is just the numerator. The denominator is operating costs. And reducing operating costs is arguably the only other way we have to meaningfully affect self-sustainability.
minPoolCost prevents pools from competing to lower operating costs, and it props up pools that cannot operate as cost-efficiently. That’s likely one reason we still have roughly 3,000 registered pools and over 1,600 active pools even though stakePoolTargetNum is set to 500. Having a minimum margin instead (CIP-23) fixes the issue as well, but at the cost of time. It is at least two hard forks and another parameter change governance action away, but our endeared community SPOs are already being forced to close left and right.
Personally I want as many honest pools as possible to be successful, and the original incentives structure was beautifully designed to do exactly that. But we have to give the parameters some tender loving care. To get where we want to be, successful pools should be able to compete primarily on pledge, and then on operating costs, without sacrificing performance. Lowering the minimum fixed fee is the first step to get there, and I'm putting my own money where my mouth is to see it through.
If we want Cardano to last, we need to attack the problem from both directions and let SPOs fairly compete to lower costs.
Vote to lower minPoolCost to 75.
This is GNP1 commenting
Great to see this up again - lets get it passed
I have a tool where I have a column that shows what the ROS is when min pool fee is 0 ADA but I will add a column for 75 ADA so that people can see how that improves the returns for small pools - https://server-tools.grahamsnumberplus1.com/delegator_tool.html and scroll to the bottom of the page after entering the ticker or pool id