What does a 1% fee mean for you?
Looking at just the variable 1% fee, if a pool returns 5% on average, a 1% fee means you get 4.95%, with 0.05% going to support the pool. If you have 1000 ADA staked you get a return of roughly 50 ADA a year, and therefore only 0.5 ADA a year goes to fund both the pool and our ongoing donations. It actually makes a very small difference on your returns, but helps us contribute to some great causes.
What does a 1% fee mean for us?
The pool fees not only allows us to invest in improving pool reliability, but it also means we can make donations and contribute back to the community and those who need it the most. You can follow the Wired Foundation blog to learn more about donations and the charities being supported.
Aside from our regular donations, our core focus is to ensure we continually invest in improving pool reliability, uptime and making sure we never miss a block. This means we are maximising your long term rewards by building a more powerful or better distributed system. This is in contrast to other zero fee pools that might skimp on hardware, run their nodes from cheap locations or use unreliable home connections.