Cardano Proposes Fee Reduction for Stake Pools
- A new governance proposal aims to reduce the minimum pool fee from 170 ADA to 75 ADA.
- The proposal, submitted on September 11, does not include changes to Plutus memory limits.
- As of September 23, 11.7% of counted DRep stake voted yes, falling short of the required 67% threshold for approval.
- If approved, operators may choose to set fees at either 75 ADA, maintain current charges, or set higher fees.
- Currently, approximately 57% of a small pool’s rewards can be consumed by fixed charges at the existing rate of 170 ADA.
The proposed fee reduction could enhance competitiveness among smaller pools struggling with fixed costs and uneven block production. Approval is pending until October 11, when voting concludes in epoch 661.
Should the proposal pass, it could allow operators to retain more rewards for distribution among delegators while potentially improving sustainability for small pools facing financial challenges.(Source)
