With 1 roll, I seem to be making 4% in xtz, not including costs. 8000 tezos, I’ve earned 57.5 tezos. That doesn’t count the extra 1500 I have because rewards only increase by roll, but I won’t count that. I got lucky that I got a 1 block baked that provided 32 xtz. I won't count my hosting costs since I share it with my ethereum validator which more than pays for the hosting. Coinbase offers 4.6%. Kucoin lending offers 5.5%. Why am I baking for such a low return? I can skip the effort of updating the node AND make more rewards with the shittiest bakery with the highest fees. If I were to include hosting and the total balance in the calculations, it's even worse, right around 3.2%.
Yea I know, I'm helping the decentralization. The fact that rewards only increase by rolls imo is a massive issue for decentralization. The smaller the baker, the more burden your delegators are to you.
I started my bakery with 8200 xtz. I received two delegations from friends for 1500 xtz. Those 1500 above 8000, I'm paying for out my pocket. TRD still calculates rewards for them as if they were participating in the roll, but all the roll was funded by me. The more rolls you have, the less of a burden. Each roll is about 20k USD, at the current 2018 price levels. In my case, I was losing about 18% of my rewards to delegators. I had to tell my friends to undelegate from me and they went right back to coinbase. Pretty embarrassing.
I should have read how the rewards protocol works a little better, I was unfamiliar with exactly how rolls work, so that's mostly on me. Once I started to see the slow trickle of xtz, and the TRD calculations, I noticed that I was paying the delegators. If I included these payments in my ROI calculation, it's even worse. Probably drops me into the 2% range.
With 1 roll, I've been told that I should get 1 baking right every 20 cycles. I'm getting 1-3 endorsements per cycle. That's something like 2.5-5 xtz per cycle. Let's say it's 5 per cycle. Let's say cycl...