How donations are made
- The 2% margin fee, defined as the pool’s profit*, is donated.
- Donations are made four times a year, at the end of each quarter.
- At least 10% of total pool income with a minimum of 100 ADA is donated every quarter even if the pool’s profit is less than this!
* For the sake of transparency, I have chosen to use the definition of pool’s profit as used in Daedalus. Actual profit might be higher or lower, but this is not publicly verifiable. In addition, this construction allows me to donate a small portion of total pool income while my pool is still small (and not making an actual profit yet), and to donate the vast majority of pool income in case my pool grows.
How donations are calculated
- Look up the epoch pool fees here (scroll down to the epochs table).
- Aggregate the total epoch pool fees.
- Deduct the fixed operational fees of 340 ADA for each epoch that shows rewards.
- What is left is the pool’s profit, this is donated!