Retiring Your Stake Pool | CoinCashew (2024)

If you no longer want to operate your stake pool, then you can deregister the pool. Deregistering the pool retires the pool.

To retire your stake pool, your stake pool does NOT require valid KES keys. However, you must ensure that your nodes are fully synchronized with the blockchain.

To retire your stake pool:

First, generate the protocol-parameters.

cardano-cli query protocol-parameters \ --mainnet \ --out-file $NODE_HOME/params.json

Calculate the current epoch.

startTimeGenesis=$(cat $NODE_HOME/shelley-genesis.json | jq -r .systemStart)startTimeSec=$(date --date=${startTimeGenesis} +%s)currentTimeSec=$(date -u +%s)epochLength=$(cat $NODE_HOME/shelley-genesis.json | jq -r .epochLength)epoch=$(( (${currentTimeSec}-${startTimeSec}) / ${epochLength} ))echo current epoch: ${epoch}

Find the earliest and latest retirement epoch that your pool can retire.

poolRetireMaxEpoch=$(cat $NODE_HOME/params.json | jq -r '.poolRetireMaxEpoch')echo poolRetireMaxEpoch: ${poolRetireMaxEpoch}minRetirementEpoch=$(( ${epoch} + 1 ))maxRetirementEpoch=$(( ${epoch} + ${poolRetireMaxEpoch} ))echo earliest epoch for retirement is: ${minRetirementEpoch}echo latest epoch for retirement is: ${maxRetirementEpoch}

🚧 Example: if we are in epoch 39 and poolRetireMaxEpoch is 18,

Let's presume that you want to retire as soon as possible, in epoch 40.

Create the deregistration certificate and save it as pool.dereg. Update the epoch to your desired retirement epoch, usually the earliest epoch or asap.

cardano-cli stake-pool deregistration-certificate \--cold-verification-key-file $HOME/cold-keys/node.vkey \--epoch <retirementEpoch> \--out-file pool.dereg

Copy pool.dereg to your hot environment.

Find your balance and UTXOs.

cardano-cli query utxo \ --address $(cat payment.addr) \ --mainnet > fullUtxo.outtail -n +3 fullUtxo.out | sort -k3 -nr > balance.outcat balance.outtx_in=""total_balance=0while read -r utxo; do type=$(awk '{ print $6 }' <<< "${utxo}") if [[ ${type} == 'TxOutDatumNone' ]] then in_addr=$(awk '{ print $1 }' <<< "${utxo}") idx=$(awk '{ print $2 }' <<< "${utxo}") utxo_balance=$(awk '{ print $3 }' <<< "${utxo}") total_balance=$((${total_balance}+${utxo_balance})) echo TxHash: ${in_addr}#${idx} echo ADA: ${utxo_balance} tx_in="${tx_in} --tx-in ${in_addr}#${idx}" fidone < balance.outtxcnt=$(cat balance.out | wc -l)echo Total available ADA balance: ${total_balance}echo Number of UTXOs: ${txcnt}

Find the tip of the blockchain to set the invalid-here after parameter properly.

currentSlot=$(cardano-cli query tip --mainnet | jq -r '.slot')echo Current Slot: $currentSlot

Run the build-raw transaction command.

cardano-cli transaction build-raw \ ${tx_in} \ --tx-out $(cat payment.addr)+${total_balance} \ --invalid-hereafter $(( ${currentSlot} + 10000)) \ --fee 0 \ --certificate-file pool.dereg \ --out-file tx.tmp

Calculate the minimum fee:

fee=$(cardano-cli transaction calculate-min-fee \ --tx-body-file tx.tmp \ --tx-in-count ${txcnt} \ --tx-out-count 1 \ --mainnet \ --witness-count 2 \ --byron-witness-count 0 \ --protocol-params-file params.json | awk '{ print $1 }')echo fee: $fee

Calculate your change output.

txOut=$((${total_balance}-${fee}))echo txOut: ${txOut}

Build the transaction.

cardano-cli transaction build-raw \ ${tx_in} \ --tx-out $(cat payment.addr)+${txOut} \ --invalid-hereafter $(( ${currentSlot} + 10000)) \ --fee ${fee} \ --certificate-file pool.dereg \ --out-file tx.raw

Copy tx.raw to your cold environment.

Sign the transaction.

cardano-cli transaction sign \ --tx-body-file tx.raw \ --signing-key-file payment.skey \ --signing-key-file $HOME/cold-keys/node.skey \ --mainnet \ --out-file tx.signed

Copy tx.signed to your hot environment.

Send the transaction.

cardano-cli transaction submit \ --tx-file tx.signed \ --mainnet

Pool will retire at the end of your specified epoch. In this example, retirement occurs at the end of epoch 40.

If you have a change of heart, you can create and submit a new registration certificate before the end of epoch 40, which will then overrule the deregistration certificate.

After the retirement epoch, you can verify that the pool was successfully retired with the following query which should return an empty result.

cardano-cli query ledger-state --mainnet > ledger-state.jsonjq -r '.esLState._delegationState._pstate._pParams."'"$(cat stakepoolid.txt)"'" // empty' ledger-state.json

In two epochs, after retirement completes:

  1. Verify that your pool is retired using a block explorer such as cardanoscan.io

  2. Your pool deposit of 500 ADA is returned to your stake address (stake.addr) as a reward.

  3. Claim your stake pool rewards.

  4. As needed, send funds to another wallet.

  5. Optionally, de-register the stake key to re-claim your 2 ADA stake deposit.

Important:

  • Do NOT de-register your stake key before your pool deposit of 500ADA is paid back to your rewards address. Nonreturnable pool deposits are sent to the Cardano treasury.

  • If there are multiple pool owners, communicate your intention to retire the pool and ensure they do not remove pledge funds until the pool is retired.

  • As a courtesy to your delegators, provide advanced notice of your intention to retire so that they may re-delegate their stake.

References

Last updated

Retiring Your Stake Pool | CoinCashew (2024)

FAQs

How do you retire a stake pool in Coincashew? ›

If you no longer want to operate your stake pool, then you can deregister the pool. Deregistering the pool retires the pool. To retire your stake pool, your stake pool does NOT require valid KES keys. However, you must ensure that your nodes are fully synchronized with the blockchain.

How to retire Cardano stake pool? ›

Retiring a stake pool
  1. Determine the epoch in which you want to retire the pool.
  2. Generate a deregistration certificate.
  3. Create a transaction containing the deregistration certificate.
  4. Once the blockchain reaches the selected epoch, the pool will be retired and your deposit will go back to the pool rewards account.
Oct 7, 2021

How to choose stake pool ADA? ›

How to choose the right Cardano staking pool
  1. Choose a pool that has a history of producing blocks. This information is typically available in the "blocks" column for each pool.
  2. Opt for a pool with less than 60% saturation. ...
  3. Some users prefer to have the option to contact the stake pool operator.

How do I cash out my staking rewards? ›

Tap the Staking Rewards Account you'd like to withdraw from. Tap Withdraw. Select the account or wallet you'd like to withdraw funds to, enter the amount you'd like to withdraw, and tap Preview Withdrawal. Agree to the terms and tap Withdraw Now.

Are staking pools safe? ›

If you use a non-custodial staking pool, there is a risk that their smart contract might be exploited, and funds lost. If you take the custodial approach, your funds are at risk if the exchange is hacked or goes bankrupt. Funds withdrawn from a staking pool are only accessible after an unbonding period has elapsed.

Can I lose Cardano staking? ›

Staking involves locking away coins in a node to validate transactions and contribute to the network's security and stability. By staking ADA, you can earn staking rewards without moving or losing your coins.

What is the best return on Cardano staking? ›

Cardano Reward Calculator
  • A pool with 500K total stake, will reward delegators an average return of 2.32% per annum.
  • A pool with 2M total stake, will reward delegators an average return of 2.72% per annum.
  • A pool with 5M total stake, will reward delegators an average return of 3.01% per annum.
Oct 22, 2023

What is the minimum ADA for staking pool? ›

Also, note that the minimum fixed ADA staking fee across each Cardano Stake Pool is 340 ADA which will be shared among the delegators of the pool.

How much Cardano to run a stake pool? ›

Fees. Aside from the initial 2 ADA delegation fee, Cardano stake pools have two types of fees which are not taken out from your rewards or wallet, but from the total rewards distributed to a stake pool. There is a fixed fee of 340 ADA set by the protocol and a variable margin fee set by each pool operator.

What is the average reward for Cardano staking? ›

This means that, on average, stakers of Cardano are earning about 1.84% if they hold an asset for 365 days. The reward rate has not changed over the last 24 hours. 30 days ago, the reward rate for Cardano was 1.86%. Today, the staking ratio, or the percentage of eligible tokens currently being staked, is 62.82%.

Will Cardano staking rewards decrease? ›

Rewards will constantly decrease by the previous epochs reward payout (total distributed to staked address and treasury for participation) and will continue to do so until the total amount of transaction fees generated per epoch outpace the reward decay and replenish the rewards pot.

What is the best pool to stake Cardano? ›

Spire Staking is a prominent staking pool in the Cardano ecosystem, identified by the ticker [SPIRE]. According to the Cardano Journal, it is listed among the top staking pools due to its competitive ROA and substantial live stake.

Is ADA worth staking? ›

The annualized reward rate for ADA staking is influenced by several factors, including the total amount of ADA staked and prevailing market conditions. Currently, ADA staking provides a minimum annualized reward rate of 1.25%.

Is it safe to stake Cardano in Ledger? ›

Through the Yoroi wallet or AdaLite, and by pairing it with your Ledger hardware wallet, you can easily and securely delegate the Cardano you want to stake. You'll get competitive rewards, and a trustworthy validator, and you keep ownership of your coins.

How do you Unstake a pool? ›

Un-staking is simply removing your loaned assets from the pool and getting them back into your wallet. Navigate to the “Lend & Earn” tab. Click on “Withdraw” instead of “Deposit” at the top.

How do you Unstake a liquidity pool? ›

Search through the list of supported liquidity pools for your pool position, or toggle "Only show my pools". Now click on the liquidity pool that you want to unstake your LP tokens from. Execute your unstaking by pressing the “Unstake” button. This will prompt a standard wallet transaction.

How do I withdraw rewards from Cardano? ›

To withdraw rewards from the rewards account, you must withdraw its entire balance; partial withdrawals are not allowed. Use the --withdrawal flag followed by the stake address and its balance using the syntax: stakeAddress+lovelace .

What is the staking pool rate? ›

The owners of stake pools and crypto exchanges determine the value of staking fees and rewards for each investor. The fees often fall within 1% to 25% of the total staking rewards. On the other hand, investors will earn rewards between 75% and 100% for staking their assets.

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