Stake Pool Ranking¶
In the Daedalus wallet and Cardano Explorer, stake pools are ranked based on the amount of rewards that users will receive if they choose to delegate to those pools. Ranking shows pool saturation level, simplifying the pool choice. From a delegator’s perspective, once a pool reaches a certain saturation point, it will no longer be beneficial to delegate to it. The most attractive stake pools are displayed first and ordered from the top down.
The ranking system is designed to provide users with the ability to choose the most suitable stake pool for a higher return on investment (ROI), so reliable stake pool operators can maintain and support the system and maximize decentralization.
A pool’s ranking is based on several parameters: cost and margin, the pool’s performance, and the amount of stake that the pool has already accumulated. These factors promote reliable stake pools that are not yet saturated and provide low cost and margin.