Cardano
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ADA · 2w

Interactive Graphs That Explain How Rewards Are Calculated

I've made some interactive graphs that can help someone understand the different factors that go into how rewards are calculated. They take the information from [this page on docs.cardano.org](https://docs.cardano.org/en/latest/explore-cardano/understanding-pledging-and-rewards.html) and present it in a visual manner that's easy to understand. In each graph, one of the factors is measured along the x-axis, and the remaining four can be controlled with sliders. The y-axis represents reward efficiency. Basically, this is how much rewards you'll get for each ada you delegate. On these graphs, a reward efficiency of 100 means that you're getting the highest returns possible, and 0 means you aren't getting any at all. I encourage you to try moving these sliders around and see what insights you can come up with. I also encourage you to read [the docs.cardano.org page mentioned above](https://docs.cardano.org/en/latest/explore-cardano/understanding-pledging-and-rewards.html), because it will help you better understand what these graphs really mean. ### [Graph 1: Pledge](https://www.desmos.com/calculator/mt4opisfrw) (p) On this graph, the x-axis represents the proportion of ada that has been pledged by the pool owner. 0 means no pledge and 1 means all the ada in the entire world. ### [Graph 2: Delegation](https://www.desmos.com/calculator/umajnvyrhk) (d) On this graph, the x-axis represents the proportion of ada that has been delegated to the pool, not including the pledge. 0 means no delegation and 1 means all the ada in the entire world. ### [Graph 3: Pool Margin](https://www.desmos.com/calculator/yta7nixh1f) (m) On this graph, the x-axis represents what percentage of the total rewards that the pool operator is taking for themselves. 0 represents 0% and 100 represents 100%. ### [Graph 4: Pledge Factor](https://www.desmos.com/calculator/343pocjrer) (a₀) On this graph, the x-axis represents the pledge factor. It determines how much influence the pledge of a pool ...
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