Rewards are calculated each epoch from the stake snapshot and the producing pool's performance, then paid out two epochs later once the protocol has finished accounting and distribution to every delegator and operator.
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- DelegationThe process of assigning your stake to a stake pool without transferring your ada.View term
- EpochA period of five days in the Cardano network during which stake distribution is fixed and rewards are calculated.View term
- Stake PoolA server node that participates in the Cardano network by validating transactions and producing blocks.View term
- Pool SaturationThe threshold past which extra delegation to a stake pool stops increasing rewards; a built-in incentive to spread stake across many pools rather than concentrate it in a few.View term
- Monetary Expansion RateThe protocol parameter (often called ρ) that controls what fraction of the remaining ada reserve is released into the reward pot each epoch.View term
- Treasury CutThe protocol parameter (often called τ) that decides what fraction of each epoch's reward pot is moved to the on-chain treasury before the remainder is paid to stake pools and delegators.View term