Welcome back! In part one of this series, we discussed Proof-of-Stake blockchains, how most work, and some essential details that differentiate the Cardano Blockchain. We went on to mention why it's a great but time-sensitive moment for the LIDO pool––check out our recent news release on the topic below.
Today we'll share a few next steps for our staking learners and look at some of what the Lido team has been up to. We'll end with PhuffyCoin: the heart of Lido. As we do, we'll remind you that just like with any new tool, it will require participation and practice before we can begin to uncover its possibilities.
Cardano Staking with a LIDO twist
Most users delegate to their favorite pool inside their wallets. Some SPOs, such as LIDO, have made it possible for ADA holders to delegate from their pool's website. Have your Nami, Eternl, Flint, or Typhoon wallet loaded in your browser first to use our 1-click staking button! If signing up in your wallet is your choice, you'll find the convenient instructions on our delegation page helpful. If it is a how-to you crave, one can be found in the drop-down menu when hovering over "What is Cardano" at the top of our site. Though specific to the Yoroi wallet, the instructions can be applied to most Shelly Era wallets. Further, we find the Cexplorer website (the adapools.org update) great for pool-related research.
When looking through the data about various stake pools, you'll notice that there is one column for fees. The bottom number (340 ADA or more) is the fee the SPO takes from the distributed rewards to their pool each epoch. Above this number is a percentage of margin. Some pools try to stay ultra-competitive with a 0-.5% margin. However, a little clicking around the retired pools on that same site provides quite a bit of data about a possible correlation between their retirements and the associated low margins. When only producing the base income of a stake pool, you can do far less as a business. That means hiring fewer people, creating less potential for sustainability, and providing less benefit for your delegators and the ecosystem long-term.
LIDO's margin is set at 4%, with half of that going to delegator-chosen charities through PhuffyCoin (more on that below). That means out of the rewards produced for a 10000 ADA delegation per year (@ 4.5% APY for this example), LIDO receives ~8.6 ADA to use for our business. This might not seem like much, but over time it becomes a substantial basis to grow from, provide value, and contribute to the community. For us it looks like continually innovating and creating to benefit the ecosystem to carry on our work towards a more equitable future; you are part of that mission when you stake with LIDO.
The work of lidonation.com
Pertinent to any talk about our mission is just how much work is being done here at the Lido Nation website and just how many people the team is making sure to be able to serve. Stepping outside the "we" for a moment, I'll mention that as a new Lido team member, I'm in the unique position of being able to boast a little about the work my colleagues have accomplished thus far. Let's hope it gets through the team-wide edit (another outstanding element of Lido's internal quality control).
First is a Catalyst research tool that pulls in all publically-available data regarding all proposals, funded or not, that have been put on the ballot since the data was made available in Fund 2. Whether you are seeking inspiration from a locally-focused proposal, trying to find people to reach out to currently working in your favorite field, or one of the many other reasons to use this instrument––it is there for you whenever you need it! Personally, I'm using it to find individuals that fit the mold for one of several forthcoming stories: seeing what each has been working on with the Catalyst search tool is a fine place to begin.
Next is the exhaustive multilingual library (Spanish, Swahili, and English so far) covering many topics within the realms of Project Catalyst and Cardano. Even more, this group understands that the future will include many blockchains. You will find insight into blockchain technology and decentralization more generally, and articles that help bridge that knowledge between popular and important chains. Though we are constantly working on the best ways to catalog the information and present it to readers, we're sure you'll find something to learn as you look through our shelves.
Lastly, we need to mention the Blockchain Lab in Kenya that Lido founded––making the Lido Nation Foundation intercontinental. With this project, work is underway by an even wider diversity of souls. Five individuals make up this team: three wordsmiths (writers and translators among them) and two on the development side of things. We are pleased to share that their dedication and commitment meet and exceed the high standards Lido requires. As we continue forward, everyone benefits from their diligent work and the unique perspectives you'll see in their achievements.
A nod to the future seems only fair, as there is so much on the horizon for Lido Nation. As this article comes to life, we are still weeks away from voting on Fund 9 proposals. And there are some pretty great proposals co-written by 'Lido' (the Lido-user account on Ideascale) that you can look up in the Catalyst search tool! There are 3 for Fund 9 and a couple that some of us have submitted individually. Go look over there if you are curious about what we have coming! It'll give you a reason to use the search tool, and perhaps we'll be fortunate enough to receive your vote on any of the proposals when that time comes! (link below)
Let's get Phuffy
Now to introduce PhuffyCoin into the mix. Not your average pool token, PhuffyCoin is a mechanism built with the potential to help transform LIDO's group of delegators into no less than a bona fide board of philanthropists. Utilizing a new vision for delegation-led collective giving, PhuffyCoin is being built to harness your experience, enthusiasm, and passion. Why? Simply put, to aim the LIDO pool's collective will toward solving issues in our societies and impacting change across the planet.
As more delegators join LIDO and sign-up on the Lido Nation website (by linking your wallet), there will be more of us taking part in these crucial conversations. During all this, the team will be hard at work perfecting PhuffyCoin, ensuring you are updated on its upcoming release and distribution. To summarize, the PhuffyCoin experiment offers concerned people the opportunity to consult and vote, using half of the LIDO pool's margin to spend on the highest voted opportunities to help. And although those with larger amounts of ADA will have a more significant vote at the outset, loyalty also plays a part in the highest voter scores. To learn more about the mathematics behind our unique voting process that represents another place our striving for equity shows up in our work, check out the article linked below.
For all these reasons and those on the horizon, we hope you'll come along for the journey with LIDO pool, or at least take part in all the great resources our community and Catalyst are responsible for funding. From the Lido team to you, thank you for stopping by; you are welcome anytime.