You Need a Cardano Pool. Here’s Why.

Introducing Yanik Koval’s dLab/Emurgo Fellowship Project

My name is Yanik Koval. For the most part, I’m a software developer, but I have also run a couple of startups, such as CryptoFox, and a small development company. I was recently appointed a Cardano fellow for dLab/Emurgo.

While at CryptoFox, I was building cryptocurrency trading tools. But I decided I wanted to do something more meaningful — especially now, when we have this fantastic opportunity to change ineffective and unjust legacy systems.

So I started with building AdaScan with my friend, and now I’ll be working on open source software for Cardano pool operators, which will help leverage staking pools and make these pools a medium for ecosystem growth and development.

Hong Kong, Apr 2017, photo from my visit to meet Ryan from EmurgoHK

999 problems but a pitch ain’t one

Miner pools play a critical part in any cryptocurrency ecosystem. However, when it comes to established coins, like Bitcoin or Ethereum, only a few pools control the majority of network hash rate. These pools are backed by big companies, and it is nearly impossible to compete with them.

Contrary to this, the Cardano protocol provides a unique framework on which one can build a confederation of 1000 pools. It is only the right balance between the type of a pool and the different skills of a pool operator that can ensure a competitive environment and high quality of a network.

It is possible that this will lead to a situation where pool operators will compete by lowering fees, which, as a result, could create many “dead pools” with inefficient minimum fees and zero contributions to the Cardano. “Dead pool” owners have minimal incentive to invest time and effort, yet they can’t raise fees because they do not contribute any value and nobody will stake with them.

To combat this problem the community can encourage and support pools with higher fees that support ongoing developments.

Imagine a world where Cardano pools not only stand for a consensus process, but support related projects, solve the real issues, try out new hardware ideas, or work on marketing, education, and communication.

Pools could support thousands of concrete, ongoing improvements to shared ecosystems across the world!

You pick an idea:

Want to sponsor the development of a related library or community software project? Maybe you like hardware and think it is possible to run a Cardano node on solar-powered RockPi 4 flying in the stratosphere? Or perhaps you excel in art and design and want to help other pools with unique logos and styles? Or maybe you just have a cool idea about how to use memes to promote ADA features? Are you interested in education and want to run a class? Love organizing events?

These are just six ideas I came up with while showering. Surely there are plenty more! What are other ways can we empower Cardano?

Pool in Hong Kong

My role in all this is to support pool operators with open source software that they can use. The ultimate goal is to provide a “30 min install” to elevate mere mortals to Cardano Pool Operators.

The software I’m working on will provide you detailed stats, historical data, a dashboard for your users, the home for your small pool mob, and more. And the best part is: future developments of this project can also be funded using profits from a Cardano pool in the future!

If you plan on running a pool, please help by filling out this form. It will help me collect information on what features are needed.