Cardano is preparing to revise its stake pool incentive model to better support smaller and single-pool operators (SPOs), targeting enhanced network decentralization and fairness.
The initiative addresses competitive disadvantages faced by small SPOs, who struggle to attract delegators against larger multi-pool operators. Input Output Global (IOG) plans to adjust reward structures to make smaller pools more appealing, promoting equitable participation and long-term ecosystem sustainability.
This strategic revision aims to strengthen Cardano’s decentralization framework, improving network security and resilience against centralization risks. IOG has committed to transparent implementation with community feedback mechanisms throughout the process.
The changes are expected to foster a more inclusive blockchain environment, aligning with Cardano’s vision for a scalable and sustainable decentralized infrastructure.