The Hard Fork Forbin plant was successfully released on the public testnet this week, and numerous tests on internal networks were successfully completed, making it a candidate for graduation. Aparna Jue, IOHK's product manager, said in a June development update last Thursday that the release of the Cardano Shelley code on the public testnet on June 30 remains on schedule.
Cardano Shelley's behavior is governed by about 20 parameters that the IOHK must determine before the main network can be activated. As Jue and Lars Brunjes explain, last week's focus was on setting "solid parameters" for the Shelley network. As Brunjes points out in a blog post, most of the parameters are technical, so while their proper setup is important to optimize security and system performance, they don't seriously affect the user experience.
They determine the degree of centralization of the Cardano ecosystem, as well as the profitability of the delegation and the operation of the share pool. Therefore, the optimal choice is very important for the success of the Cardano Shelley parent network. One of these parameters is the number of pools (k) desired, as described by Brunjes:
The higher the selected k, the more decentralized the system. But a higher k leads to a less efficient system (higher costs, more energy consumption) and less rewards for both representative and shareholder pool owners. Cardano promotions are designed to promote a balance with k full saturated pools, which means that the rewards will be optimal for everyone when all stakes are given equally to the most attractive pools.
To create a balance between attractive rewards for shareholder operators, the IOHK will first set the level at k = 150 and then gradually increase this value. This will ensure that the system is initially stable and efficient, and may gradually grow over time to become more decentralized and more reliable:
The number of 150 stock pools of equal size makes Cardano a more decentralized order than other blockchains. And this is just the beginning. There is no reason why there may not be thousands of share pools in the future.
Awards for Cardano operators and ROI
Another very important parameter in this sense is, of course, the reward for ADA owners (to give a share) and share pool operators. These are transaction fees from two sources, collected in a "virtual pot" at a time, then distributed and received from the expansion of money. The latter is regulated by a fixed percentage (p) that controls the release of the remaining ADA reserves. In addition, a certain part of the pot (?) is sent to the treasury, the rest is used as a period reward.
Constantly declining emissions must be offset by increased adaptation and thus increased operating income. As explained by Brunjes, p will initially be 0.22%. This means that half of the remaining reserves will be used every 4-5 years. This is equivalent to halving Bitcoin, so there will be a similar inflation rate in the ADA.
We feel it makes sense to expect that the volume and exchange rate of the Cardano transaction will increase significantly over the next eight years, during which time the monetary expansion will slow down.
The value of ged?n going to the treasury for one period is parameterized up to 5%, ie at least 380,000,000 ADA will flow to the treasury in the next 5 years.
Revenues for stock operators will average 6% -6.5% between the above parameters, the cost of operating a shared pool of $ 2,000, the current price of the ADA and the target number of pools (150 to 500).
However, as Brunjes points out, the proposed values ??are just the beginning. Values ??need to be clarified and corrected in the coming months and years:
