Cardano Governance Proposes 55.9% Cut to Minimum Pool Fee

Cardano's governance proposal aims to reduce the minimum fixed fee that stake pools can declare by 55.9%, from 170 ADA to 75 ADA. The proposal, submitted on September 11, is currently live and set to expire on October 11.

This change could improve rewards for delegators using small pools, as the fixed cost is deducted from a pool's gross rewards before the remainder is distributed to delegators. However, it would not require operators to reduce their fees, allowing them to continue charging 170 ADA or more if they choose to do so.

A previous proposal paired this fee reduction with an increase to a Plutus memory limit, but expired on September 1 after receiving support from only 34.5% of stake-pool stake.