The Purpose of Our Stakepool Fees.
The main goals for the Horizn Digital Stake Pool are quality, longevity, consistency. When means we want to be around in the Cardano Ecosystem for as long as possible. We believe in the project, and know that for us to be able to stay around and maintain the highest quality performance possible means that we must have the resources to consistently upgrade our infrastructure with our growth. The main determining factor between the stake pools who will be around in 5-6 years will be their ability to consistently produce blocks, running a stake pool at a loss is not a good way to be able to maintain a stake pool.
Current Fee Structure
- Fixed Fee: 1%
- Variable 10%
What does the Fixed Fee and Variable Fee mean?
The fixed fee is the amount of Ada that we receive each time we process a block that contains a reward. The Variable Fee is based on our performance as a stake pool, the better we perform we get the chance to receive 10% of the blocks we produce.
Assume that HRIZN recieves a block with a reward of $1000. We have a Fixed Fee of (1%) of the 1000 which is $10. Next Applied is the Variable Fee of 10% of the 990 which is $95. Which leaves $895 to be split among the delegators. Block Reward 1000 Fixed Fee(1%) -10 Variable Fee(10%) -95 ----------------------- Delegators split 895
Future Fee Changes
During the Incentivized Test Net, we don’t plan on changing the current fee structure. Once the Main net arrives the plan is to change the fee structure to one that is highly competitive with other pools but still allows us to still abide by our core values.