Cardano Proposal Cuts Pool Fees by 55%, But Worries Small Pools

A new proposal on Cardano aims to cut the minimum pool cost by 55%, but it comes with concerns for small pools. The current mainnet minimum is set at 170 ADA, and the proposed change would lower this to 75 ADA. However, operators rely on the fixed charge for income, and a lower floor could leave them vulnerable to uneven block production.

The proposal removes the requirement for stake pool operator (SPO) support, which was a hurdle in an earlier attempt to cut the minimum pool fee. The current vote is pending, with approval needing 67% of DRep votes and 66.7% of Constitutional Committee members voting yes.

Supporters argue that a lower floor could help smaller pools attract stake and become sustainable. However, operators have reacted cautiously to previous fee reductions, with some choosing to stick with the higher declared fixed cost despite the option for a lower minimum.