FAQ

Frequently Asked Questions about Cardano ADA

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Q: Where can I buy ADA?

It is not available on Japanese exchanges, so you can buy it on overseas exchanges such as Binance.

Q:What is Cardano?

Cardano is an innovative proof-of-stake blockchain network that is being developed as a platform for developing decentralized applications with multi-asset ledgers and verifiable smart contracts. Cardano is designed to be the platform of choice for large-scale, mission-critical DApps that support the economy of the future. Cardano is designed to be the optimal platform for large scale, mission-critical DApps that will support the economy of the future.

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Q: What is Ada (ADA)?

Cardano is the general term for the project, and the currency used in the project is Ada coin.

Q:Which is better, Daedalus wallet or YOROI wallet? And what are the differences?

YOROI wallet is connected to the blockchain server and does not need to download data, so it is light in operation.

Daedalus wallet is a wallet that is synchronized with all the data of the blockchain, so it is characterized by high security.

Q:There are many addresses for deposit, can I choose any one?

Yes, you can choose any of them to deposit to one address. Daedalus Wallet can generate a new address each time it is used, which leads to improved security.

Q: What is Proof of Stake (PoS)?

Unlike Bitcoin and other "proof-of-work (PoW)" methods, PoS is a method of determining the percentage of approval work to be done based on the percentage of coins held to the total amount of coins outstanding.

Q: What is staking?

In a proof-of-stake (PoS) blockchain, a mechanism for holding cryptographic assets and earning rewards for participating in the network.

Q: What is delegation?

Delegation is the act of depositing the right to staking in a stake pool; it is safe because you are not depositing the ADA. The stakepool is assigned blockchain approval tasks based on the amount of delegation.

Q: How much is the commission?

The HUNNY pool has a fixed 340ADA (minimum amount) and a 0.5% commission. The minimum commission for all pools is 340ADA and up. However, the 340ADA is not deducted from the delegator's compensation, so you will not be in the red. The 340ADA plus a variable fee of 0.5% will be deducted from the overall fee and will be allocated to all delegates according to the amount they delegate.

Q: How can I stake?

For more information on how to delegate, please refer to this article. You can delegate with Daedalus Wallet or YOROI Wallet.

→How to staking with Daedalus Wallet

→How to do staking with YOROI Wallet (PC version)

→How to do staking in YOROI Wallet (app version)

Q: Is there a fee for staking?

It costs about 2 ADA for deposit and 0.2 ADA for transaction fee.

Q: How much ADA is required for staking?

A: You need to have at least 10 ADA in your wallet. The cost of staking is about 2 ADA, and in case of YOROI wallet, the deposit cost will be refunded if you cancel staking.

Q: Do I need to charge a fee for staking?

No, you do not. You will be automatically credited to your wallet and all ADA in your wallet including the deposit will be automatically staked. So you can expect a compounding effect!

Q: Do I have to re-stake my staking rewards?

No, you do not. All ADA in your wallet, including staking rewards, will be automatically staked. So you can expect a compounding effect.

Q: Will my ADA be lost or stolen if I stake?

A: Staking is not depositing your ADA in a staking pool. The staking pool gets proof of delegation and is assigned the right to generate blocks based on that.

Therefore, there is no danger of losing ADA. The delegator is free to use the ADA in the wallet, and it is not locked up.

Q: Will it be locked up if I stake it? Will I be unable to withdraw it?

No, it is not locked up and the delegate is free to remove the ADA from the wallet at any time.

Q: When do I get paid for staking?

Staking will become active 2 epochs after you delegate it. The actual flow from delegation to reward payment is as follows

Example: Epoch 264 (delegate) -> Epoch 265 (take snapshot of delegation status) -> Epoch 266 (delegation becomes active) -> Epoch 267 (calculate reward) -> Epoch 268 -> (pay reward)

You will receive a reward every epoch (5 days) unless you un-stake it.

Q: When is the reward not given?

No reward is given if the staking pool is unable to generate blocks. The allocation of block generation depends on the amount of delegation.

Q: How do I choose a stake pool to delegate to?

First, check to see if they are a reliable pool operator. Then, also check if they can run the pool stably.

Then, check the amount of delegation. 3M to 50M seems to be a stable reward.

Stake pools between 100K and 3M have a larger element of chance, so sometimes the rewards are large and sometimes they are small. However, the expected value of all pools basically converges to about 5% per annum, so I think it is a matter of preference.

As for pools below 100K, if the stake pool is not generating blocks, you will not be rewarded, so it is not recommended if you have less than 100K in delegation. However, Cardano's basic philosophy is decentralism. With that in mind, it's great to contribute to decentralization by delegating to a smaller pool, or supporting that pool operator, although it's hardly a good idea.

Please note that stake pools with a delegation volume of 64M or more will be rewarded less. (Saturation point is set to 64M)

Q: Do I need to do anything after I delegate?

Basically, you don't need to do anything, as your rewards will be automatically re-delegated, and will be staked at compound interest.

However, we recommend that you periodically check on the operation of your stake pool. One is to see if the rewards are in place. Another is whether they are changing their fees. Please be aware that there could be malicious fee changes.

Q: Can I change my mandate to another pool midway through the process?

You can do so at any time. The following is the schedule for doing so.

Staking will become active 2 epochs after you delegate. The actual flow from delegation to reward payment is as follows

Example: Epoch 264 (delegate) -> Epoch 265 (take snapshot of delegation status) -> Epoch 266 (delegation becomes active) -> Epoch 267 (calculate reward) -> Epoch 268 -> (pay reward)

Q: How much reward can I expect?

If it is a block-generating pool, the interest rate will basically settle down to about 5% per year.

Q: What should I do if I want to continue delegating?

If you delegate once, you will automatically be delegated to the same stake pool for the next epoch. So, you don't need to do anything.

Q: What is saturation?

Cardano is making sure that no one pool has too much power. This is due to decentralization. When the size of the pool grows beyond a certain point (64M delegated amount), the reward becomes smaller. This is called saturation. This causes users to periodically move between pools, theoretically making it impossible for any one pool to gain an advantage.