Here is the official Cardano (ADA) frequently asked questions.
What are Stake Pools?
Stake pools are run by stake pool operators. These are network participants with the skills to reliably ensure consistent uptime of a node essential in ensuring the success of the Ouroboros protocol and the Cardano network.
The protocol uses a probabilistic mechanism to select a leader for each slot, who will be expected to create the next block in the chain. The chance of a stake pool node being selected as slot leader increases to the amount of stake delegated to that node. Each time a stake pool node is selected as a slot leader and successfully creates a block, it receives a reward, which is shared with the pool proportionate to the amount each member has delegated. Stake pool operators can deduct their running costs from the awarded ada, as well as specify a profit margin for providing the service.
Can I spend my mainnet ADA?
Yes. Mainnet ADA will not be affected by the Incentivized Testnet. After the balance snapshot, ada owned on the mainnet can be spent and exchanged freely.
Can I re-delegate my stake to another pool?
Yes. Delegated stake can be re-delegated to another pool. Re-delegated stake will remain in the current pool until the epoch after next (from the point of re-delegation), after which your delegation preferences will be updated on the chain and your stake moved to the new stake pool. Rewards are distributed from the end of each epoch, so you’ll continue to receive rewards from your original stake pool for two epochs before your new delegation preferences are applied.
Can I delegate to more than one pool?
Yes. However, to delegate to multiple stake pools, you will need to create separate wallets. The stake associated with each wallet can then be delegated to a specific stake pool.
Can I run a private stake pool?
Yes, this will be technically possible. It can be achieved by registering a stake pool and setting the operator rewards percentage to 100%, so that anybody that delegates to your stake pool will not receive any rewards. This will disincentivize delegators from delegating to your stake pool, but provide you with the ability to stake your ada and singly reap the rewards, while testing your stake pool operations.
How much money will I be able to make?
You can use the Incentivized Testnet rewards calculator to get an idea of how much you will earn in rewards on the Incentivized Testnet. It’s important to note that the calculator produces only reward estimates and shouldn’t be considered definitive or a guarantee of reward amounts. Over the course of the Incentivized Testnet, we will likely test different parameters that may affect reward margins. Amounts calculated are therefore subject to change, but represent a realistic and sensible level of return.
How should I choose a stake pool?
The Incentivized Testnet Daedalus wallet will feature a list of all taking part stake pools directly via the UI, while Yoroi will show the same information via their Seiza blockchain explorer. These pools will be ranked and color-coded to help stakeholders make the best decision about where to delegate their stake. Ranking is based on performance, which is calculated in part based on the number of blocks the stake pool was tasked to create compared to the number actually created in a single epoch. Over time, more metrics will be added to this ranking.
What wallets are supported and where do I find them?
Both Daedalus and Yoroi wallets are supported for the Incentivized Testnet. You can download your preferred wallet client using the links above.
For technical reasons, only ada held in Daedalus or Yoroi wallets at the time of the snapshot in a few weeks can be restored on the Incentivized Testnet. Any ada held in exchanges, third-party wallets, or hardware wallets must be moved to either a Daedalus or Yoroi wallet prior to the snapshot if users wish to take part in the Incentivized Testnet.
What’s the difference between a balance wallet and a rewards wallet?
When you first restore a wallet on the Incentivized Testnet, a balance wallet is created containing all your testnet ada. Balance wallets are copies of mainnet wallets, and as such do not support stake delegation. To participate in delegation on the Incentivized Testnet, you’ll need to create a rewards wallet and transfer funds from your balance wallet to your rewards wallet.
When will I receive my ada rewards?
Both testnet wallets (Daedalus and Yoroi) will display rewards earned throughout the Incentivized Testnet. Once the Incentivized Testnet is over, we’ll provide you with a manual procedure to transfer ada earned to the mainnet.
Can I delegate my stake using an exchange?
No. Only ada that was in a mainnet Daedalus or Yoroi wallet at the time of the balance snapshot (12.00 UTC, November 29, 2019) is eligible for restoration on the Incentivized Testnet, and restored testnet ada can only be delegated via the Incentivized Testnet versions of Daedalus and Yoroi.