Cardano changing parameter k will help delegated funds
Cardano is changing parameter k – deadline for stake pool swap expires today
The adjustment of parameter k will encourage the redistribution of delegated funds to smaller and medium-sized staking pools.
Funding saturation greater than 30% by delegators in staking pool are going to have to move their ADA
A full decentralization of Cardano is becoming more and more imminent, IOHK has recently made significant progress in that direction.
First, they have given more power to the community that now produces most of the blocks on the network.
In addition, on December 6, IOHK will adjust the parameter k.
Director of Marketing and Communications of IOHK, Tim Harrison, announce they have studied the network activity following Shelley’s deployment.
Studies found that parameter setting was too low at 150 and needs changing to 500.
However, this will have a direct impact on the staking pools and ADA holders because it limits the amount of ADA they can hold before becoming saturated at 64 million ADA. The goal of the change is to support small and medium-sized staking pools. In that way, the company expects the rewards to be “fairer” than at Bitcoin and Ethereum.
How to get highest Cardano (ADA) rewards?
In a post via Twitter, IOHK has informed ADA holders that after the increase in the parameter k, they should review the delegation of their funds. it is advised to move the funds to maintain maximum rewards if delegated fund pool is more than 64 million ADA . As of December 6, pools with 64 million ADA will be “oversaturated”.
Therefore, users who want to keep their rewards at a maximum should use Daedalus wallet and check the statistics of their pool. If the saturation has a value lower than 30%, user can keep the funds on the pool. Otherwise, it is important that to withdraw the funds before December 1st at 21:44:51 UTC. Harrison summarized the process in 6 simple steps: