QUEEN ADA

The 1M₳ Stake pool

FEES

TLDR: We are lowering our variable fee to 1% until saturation of 60% is reached. This will allow us to gather more delegation, which will spread the fixed fee among larger stake, and thus make us more competitive. Larger delegation will allow us to stay competitive even when we raise the fee back to 2.7%.

Queen is a consistent and reliable Stake Pool which has proven itself over the course of 7 months of the ITN, and now the first month of main net. Queen is committed to Cardano’s long term success. We have determined that a 2.7% fee is a fair, sustainable variable fee for our long term operation, based on our pledge of 1M₳*, our costs, and other contributions to the eco system, which haven’t yet been announced. Many similar service providers on other blockchains like tezos, nuls, to name a few, charge 10% across the board.

It is unfortunate that the pledge factor is as low as it is, and does not have as positive an effect as we would like. This means that pools which have 10+ times less pledged but which charge lower fees, can produce similar results to QUEEN’s, and many have attracted more delegation thus far. Part of the reason for this is that the fixed fee is cutting into our delegators’ rewards.

To counter-balance this and hopefully rise in Daedalus rankings, we decided to lower our fee to 1%, until we have reached at least 60% saturation level, which at k=150, is at around 127M₳ in delegation. We have reached saturation during the ITN, and hope to be able to do that again. At that point, the fixed fee will be spread 10+ times thinner, meaning that the fixed fee will be 10 times less than it is currently. At that point, raising the fee back to 2.7% will have a small effect on our ROS, which should be significantly batter than it is at this moment, although current ROS is nothing to be scoffed at.

If we don’t reach the 60% saturation point, the 1% fee will remain that low indefinitely, which is great news for delegators!

* We promise to keep the pledge at 1M₳ until at least 2025 and very likely beyond.

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