Cardano Pays Out Bigger Staking Rewards Than Initially Believed

Cardano pays out bigger staking rewards after migrating to a proof-of-stake blockchain last month and switching to Shelley. At the end of July, Cardano launched its mainnet Shelley alongside the network staking capabilities so let’s read more in the cardano cryptocurrency news.

Now it seems that Cardano pays out bigger staking rewards as the users got the first taste of what the staking options hold. 7 million ADA was handed out on the first day of the rewards and IOHK expects 12 million ADA to be given out. According to the Cardano staking calculator, the rewards sit at an annualized return of about 5.1% which is higher than the 4.6% estimate that was put forward before Shelley’s launch. Cardano’s product director at IOHK said:

“We couldn’t have asked for a better response from the community, who have jumped into operating stake pools and are reliably making blocks. This is shown by the 1,138 stake pools currently active, which is around the desired equilibrium for the network.”

First Cardano staking rewards are in!! This is now the norm every 5 days 🙂 Pretty much every stake pool made +-5.5% (that made a block) Check out this great Cardano, stakepool tool for a breakdown. https://t.co/T3bAThqW8x

— Harry Horsfall (@HarryHorsfall_) August 25, 2020

Jue added that there are already 40,221 addresses that are staking a total of 13.6 billion ADA coins and the transition to the proof-of-stake blockchain comes with some benefits for the validators which is of course, the staking rewards. By staking the funds, users get rewards with Cardano’s native token for the part in securing and validating network transactions, as one staker said:

“First Cardano staking rewards are in!This is now the norm every 5 days 🙂 Pretty much every stake pool made +-5.5% (that made a block).”

First Epoch Rewards! https://t.co/LTVDLQBxrw

— Charles Hoskinson (@IOHK_Charles) August 24, 2020

Before the initial staking handout, there was a total pool of 13.8 billion ADA tokens reserved as staking incentives for network participants. Every five days, 0.3% of this total reserve around 41 million ADA was distributed among the active stakers. The founder of Cardano Charles Hoskinson ensured that everything went according to plan with the first staking reward issuance:

“I just wanted to make sure everyone got what they expected, the staking calculator was accurate if there were any problems. Or if everything was looking good.”

In order to boost the security of the stake pool operators, Hoskinson announced the development of two new features for Trezor and Ledger. In the new blackboard video, Charles Hoskinson informed me that IOHK will introduce the functions of the new delegation method and delegation portfolios.