FAQs About Staking ADA Cardano
What is ADA Cardano?
Cardano is a 3rd generation blockchain technology. Founded by Ethereum co-founder Charles Hoskinson, Cardano was developed for changemakers, innovators, and visionaries, with the tools and technologies required to create possibility for the many, as well as the few, and bring about positive global change. ADA is the native crypto currency of the Cardano Blockchain.
Why Did Prepare U Create a Stake Pool?
In 2016 the team that developed Prepare U was featured on Cheddar TV following an interview with Charles Hoskinson. Fascinated by new technologies and the vision for giving hope and identity to over a third of the worlds population, the team behind Prepare U began doing more research and saw that ADA Cardano can deliver on its ambitions, which will reduce suffering, stimulate innovation, and ultimately save lives by providing opportunities for a greater and more equitable future.
What is Staking?
Staking is similar to the idea of mining, as they are both used to verify transactions. However, staking is based on a Proof-of-Stake protocol, which is significantly more robust and energy efficient. ADA Cardano led the way and research to become the first Proof-of-Stake protocol.
When an individual or entity delegates to a staking pool, they are "delegating" that staking pool. Those delegators automatically become witnesses to create blocks and verify transactions. By doing so, the delegators are rewarded in the native coin ADA.
What Are The Risk?
There are no risks to delegators and there is no lock up period, meaning that we never hold your ADA tokens and delegators can transfer, sell or delegate to a new stakepool at any time. This is part of the brilliance of the ADA Cardano network.
What Can I Earn?
On average an annual return will be between 5% to 6% on your staked ADA. With appreciation of the native ADA coin, this can become a very significant return.
How Often Am I Paid?
Payouts are every 5 days depending on if a block was minted in the pool during that period. The first potential payout will begin approximately 15 days after delegating to the pool.
How Does Prepare U Stake Pool Make ADA?
The Prepare U Stakepool (ticker=PrepU) runs servers with the ADA Cardano Blockchain node. This helps to support the ecosystem and decentralization. When the Prepare U Pool is randomly selected to verify transactions, the pool receives rewards in ADA for doing so. You will never lose ADA by delegating. Our fees are a standard 340 ADA per Epoch and 4% of the total rewards collected.
How Will Prepare U Utilize the Rewards?
100% of the Prepare U Stake Pool rewards will go to benefit the continued expansion of the Prepare U SEL Mental Health Curriculum, tools, and operations.
During the first year we intend to allocate proceeds in the following manner:
25% Allocated for grants to schools that have experienced a recent suicide or traumatic event
35% Allocated to curriculum facilitation for support staff, development and servers
20% Educational marketing campaigns
20% Stake pool operations and growth
100% Commitment to reduce suffering and increase meaning and purpose for future generations