The parameter is part of Cardano's reward sharing scheme. Before delegator rewards are computed, the pool's declared fixed cost (capped below by minPoolCost) and margin are deducted from the gross pool reward; what remains is split pro-rata across delegators.
minPoolCost is an economic-group protocol parameter. It is changed through a protocol-parameter governance action ratified by the Constitutional Committee and DReps; stake pool operators do not vote on it, because it is not one of the security-relevant parameters that require an additional SPO vote.
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- 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
- RewardsAda earned by delegators and stake pool operators for participating in the network.View term
- k parameterThe protocol parameter that sets the target number of saturated stake pools for healthy decentralization.View term