Notice of Margin Increase
VoltPool has increased the margin fee for VOLT to 1%. Please note the average margin fee for a pool across Cardano is 5.80%, and we are well below the average margin fee. There are several reasons why VoltPool has decided to increase fees, but the main reason is hardware upgrades to RAM for the projected upgrade of 1.28.0 for smart contract functionality.
VOLT2 is 0% margin for the foreseeable future. Therefore, please stake to VOLT2 for the same performance but a lower fee.
Hardware Upgrade Cost
Cardano is about to support smart contract functionality. Doing so will increase RAM usage on the nodes on the network. VoltPool’s servers are hosted in the cloud and had to increase the RAM on the node and relays it is running.
VoltSight Development Cost
VoltSight is moving along as a data analytics platform for Cardano. VoltPool is currently creating the backend queries that query the Cardano blockchain. As a result, the cloud hardware and architecture cost for VoltSight has increased.
Return on Stake is Higher
VoltPool has always had low variable fees. VoltPool switches from 0-3% for the past year and now have set fees between 0-1%. During these last few months, VoltPool kept the fee at 0%. During this time, VOLT Return on Stake (ROS) has decreased from 5.28% to 5.12%. While we maintain a slightly higher than 5% ROS set by the Ouroborus protocol, a variable fee approach is the best approach to sustain a higher ROS for the delegators.
If you would like to switch from VOLT, we recommend VOLT2, which has a fee of 0% and does not have plans to increase pledge until VOLT2 is close to saturation.
If you have any questions about the fee change, you may contact me via chat at the bottom right, Twitter, Telegram, or email your question. Thank you for staking with VOLT, and VoltPool wouldn’t be here without you!
Validating Blocks faster than Lightening,