Pledge FAQ
What is a stakepool's pledge?
A stakepool operator pledges an amount of ADA to their pool. This is a portion of the stakepool operator's stake that is "locked in" for the next 2 epochs. For example, if a stakepool's ADA address has 1000 ADA and the pool's pledge is 800 ADA then the operator will not be able to move the 800 ADA for the next two epochs.
What is the point of a pledge?
A pledge is a way for a stakepool operator to show their commitment to their pool. It shows the minimum amount of stake a stakepool will have for the upcoming epochs and is intended to be static for a reasonably long amount of time. It is not so easy to change and it cannot be reduced quickly.
What is pledge leverage?
Pledge leverage is a ratio of a pool's live stake to the amount of ADA pledged. For example, if a pool has 1000 ADA pledged and a live stake of 2500 ADA has a pledge leverage of 2.5. Generally a lower pledge leverage is a good sign as it indicates the pool operators have committed a larger portion of the pool's stake.
Can the pledge be altered?
Yes! It can be increased or decreased by resubmitting the pool's registration certificate. It is important to note that once a pledge is altered it takes two epochs to take effect. Failure to meet a pool's pledge will result in that stakepool receiving zero rewards. If you reduce your pledge you must wait two epochs before moving the ADA from the pool account.
How can I change my pledge?
There are already many published resources on this. We recommend the awesome coin cashew's guide, available here.