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There are two ways an ada holder can earn rewards: by delegating their stake to a stake pool run by someone else, or by running their own stake pool.
The amount of stake delegated to a given stake pool is the primary way the Ouroboros protocol chooses who should add the next block to the blockchain, and receive a monetary reward for doing so.
The more stake is delegated to a stake pool (up to a certain point), the more likely it is to make the next block – and the rewards that it earns are shared between everyone who delegated their stake to that stake pool.
Ada is a digital currency. Any user, located anywhere in the world, can use ada as a secure exchange of value – without requiring a third party to mediate the exchange. Every transaction is permanently, securely, and transparently recorded on the Cardano blockchain.
Every ada holder also holds a stake in the Cardano network. Ada stored in a wallet can be delegated to a stake pool to earn rewards – to participate in the successful running of the network – or pledged to a stake pool to increase the pool’s likelihood of receiving rewards. In time, ada will also be usable for a variety of applications and services on the Cardano platform.
Delegation is the process by which ada holders delegate the stake associated with their ada to a stake pool. It allows ada holders that do not have the skills or desire to run a node to participate in the network and be rewarded in proportion to the amount of stake delegated.
Delegation is supported by Daedalus – a full-node wallet developed by IOHK
Yoroi: a browser-based wallet developed by EMURGO. To learn more, select either wallet.
Once the wallet is setup, Search for ASHASTAKE or af61a91e660d04e35e852cb7595d937e825e8f26e8b124aaac0e7b2c
Staking ada provides ada holders with rewards – in addition to the potential market price gains. The more ada you stake, the more rewards you can earn.
Now you can do more than hodling; see how much rewards you can possibly earn by staking ada.