VITAL Pool Update - September 2021
Update regarding the current status of the VITAL Pool. Statistics, relevant changes, and highlights of the last 3 months. We enhanced the value proposition of our pool which now includes CO2-neutrality and a unique Block Insurance. We continue our efforts to get a vital part of Cardano in the most responsible way.
Overall Stats / Delegation Status
In June we won a big delegator (285k). This helped us to mint our first blocks and therefore proofing our setup which was a big milestone as many delegators do not consider 0 block pools.
Unfortunately this delegator decided to leave again end of July which pushed us back to 170k in active stake. In the meanwhile the active stake increased to 280k, which allows us to mint a block on average every 4th epoch.
We minted 7 blocks in total and generated an average live time ROA of 6.23% for our delegators (excluding the 7% ROA in the pool introduction phase)
This is far above the current average. For comparison, the top 100 pools by saturation generated ~4.7% on average during the last 10 Epochs.
Best Rate Offer / Pool Parameters Update
The best Rate Offer still runs until end of September. Since the introduction we were not always able to achieve 5% higher rewards than the top 100 pools. In the end it turned out we had to share 100% of the fixed cost to achieve or almost achieve the benchmark rate. Based on luck the real returns over-achieved the benchmark with the above mentioned 6.23%.
Calculating out luck we are generating 4.87% on average as long as the Best Rate Offer still runs.
After September the Best Rate offer will be discontinued and we will introduce a 100 ADA fixed cost + 2% margin configuration. This will generate 4.23% on average. As the lowest allowed fixed cost is still 340 ADA we will share 240 ADA with our delegators. As soon as the protocol allows lower fixed cost we will hand apply the according pool parameters on chain.
After this change the pool will generate profits for the first time. Everything until now was a pre-investment to achieve a delegation which already allowed us to achieve a stable basis for the future.
Through the change we will generate a 0.5% lower ROA (compared to the top 100 pools). The ROA will increase as the pool is further growing:
- <1M: 4.23% ROA
- 2M: 4.54% ROA
- 3M: 4.66% ROA
When reaching >3M we will break through the AVG Top 100 Pool as those pools are still based on a 340 ADA fixed cost.
Through the introduction of the 100 ADA fixed cost the pool gets economically sustainable. Without generating profits we are not able to support our mission which makes this an important milestone for us. The low fixed cost should still make the pool an attractive choice for new delegators, while the 2% margin will generate income as soon as the pool further grows.
Highlights of the last 3 months
- June 10th – 7% offer was exhausted (2000 ADA add-on rewards were fully paid out)
- June 15th – Best Rate offer was communicated through the website
- June 20th – Pledge increased to 40k
- June 20th – Purchase of rainforest trees to offset all CO2 emissions of the pool for the next 60 years
- June 25th – Discussion Channel was introduced: https://t.me/joinchat/k7SjxqFCfC41NGRk
- June 28th – FIRST BLOCK MINTED. End of being unlucky. We should have minted 3 blocks already but never were elected.
- June 28th – First donation to Lobby16
- June 28th – Introduction of the Africa/Ethiopia Relay
- July 1st – Introduction of the Block Insurance. If we miss a block based on technical issues we stand in and pay the rewards from our pocket.
- August 13th – Publication of the Delegators Knowledge Check
- August 19th – Series of technical Articles published on the forum
- August 27th – We are now part of 5 Alliances (MDP, CSPA, xSPO, CNBG, CDP)
Since the beginning we are running a failover approach which allows us to switch from one Block Producer to another in case of issues. The failover was in the meanwhile automated and we shared the required approach with the community
Another round of Delegation was announced by IOG this week. In the next IOG newsletter the registration form will be published. We know already that this time community contributions will be important and that there will be a way which allows other SPOs to vote individual pools as well.
We created accounts on Facebook, Instagram and LinkedIn additionally to the Reddit and Twitter account. We will use these channels to communicate our values and differentiators. We believe in our offering and think the main reasons why we did not found more delegation so far is because we are “talking” to less about our unique offering. We plan to run a series of post where we will highlight each differentiator one more time to generate some awareness.
Additionally we will run a survey with a gift which is meant to educate delegator about our differentiators to generate additional visibility for our pool.