Question 1

Where do rewards come from?

Accepted Answer

During each epoch (5 days), a 'bag' collects all transaction fees and newly minted coins. At the end of epoch these collected ADA are redistributed.

Question 2

How distribution occurs?

Accepted Answer

a. A fixed amount goes to treasury (used to fund developers for making better code and improving Cardano) b. Then each pool gets their part proportional to their size.

Question 3

Distribution of rewards to all delegators in a pool?

Accepted Answer

Reward amount recieved by each delegator is directly proportional to the stake (ADA) delegated to pool. Eg In pool x there ared 2 people delegating their ADA. Person A delegated 75 ADA and Person B 25 ADA. In this case rewards will be distributed in ratio 3:1.

Question 4

Does delegating means transferring ADA to pool?

Accepted Answer

No, you do not transfer any ADA to pool. Your ADA remains in your wallet and can be withdrawn/spent anytime you want.

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