EP011 – Simple Explanation of Cardano Fees & Inspirational Chat with SPO MermADA
Episode by Peter Bui on June 8th, 2021
This week we look at all the Cardano fees that are involved with using the blockchain. Every Cardano fees from staking fees, registering fees and transfer fees for Cardano. MereADA also joins me on the podcast to talk about her mission-driven pool to save the world’s oceans, and we look at her unique branding for her stake pool. We also talk about how she mines other cryptocurrencies with a mining setup for Ethereum.
Nervos Cross Chain Bridge with Cardano
Nervos partner with Cardano to build a bridge between the two blockchains. It forms a layer of interoperability between the two blockchains.
“Holders of Nervos CKByte (CKB) and ADA will be able to transact both currencies interchangeably. Nervos users will also be able to take advantage of Cardano’s native asset standard to create tokens that can be ported and used across both networks. On top of this, the bridge enables developers on both chains gain access to services and features to expand their DApp ecosystem and user bases.”
Read more at the IOG Blog about the first cross chain bridge between Nervos and Cardano.
Hardware Wallet by Square
Jack Dorsey, CEO of Square and Twitter mentioned that they’re looking into building an open hardware wallet to store Bitcoin. This will allow users another option in regards to storing their cryptocurrencies in a secure manner.
Read more about the announcement about Square’s plans to make an open hardware wallet for Bitcoin.
Understanding Cardano Fees for Transactions, Registering and Delegating to a Stake Pool
There are various Cardano fees that you have to pay to use the network. These vary from process to process, but their all have one thing in common, they’re vastly cheaper and lower than Ethereum or Bitcoin fees.
These fees make up the block rewards that are minted by stake pool on the network.
When delegating to a pool, there is also a small fee of around 0.17 ADA. If it is your first time registering a wallet to delegate, it will cost you 2 ADA to register the wallet, which can be reclaimed when the wallet is deregistered.
General Cardano Fees that You’d Expect to See
Wallet Delegation Registration Fee
Any time you create a new wallet and delegate it to a pool for the first time, you will have to pay the wallet registration fee and transaction fee. The wallet registration is currently 2 ADA and the transaction fee is approximately 0.17 ADA
Cardano Transfer Fees
When you transfer ADA from one wallet to another or from a wallet to exchange and vice versa, you will pay approximately 0.17 ADA. Some exchanges charge you more for moving ADA from an exchange to a wallet. It’s important to take note of these Cardano fees when moving from an exchange to a private wallet for staking as they will eat into your rewards.
To find out more about the fees with delegation, please read out guide about the costs and fees of delegating to a stake pool.
Interview with MermADA from MetroMermaids
MermADA joins me to talk about her experience in running a stake pool and mining Eth with their mining rig.
Since recording this interview with MermADA, the stake pool MetroMermaids have minted not 1 but 2 blocks.
I am at a loss for words. Thank you @bonzaibits for this amazing artwork of me! I am so grateful to be a part of this community and thankful to each and everyone of you. Truly an honor! pic.twitter.com/6QKdmXELuw— MermADA ⥾ Cardano Pool ⥾ TAILS (@_mermada) May 10, 2021
MermADA gives her point of view in regards to mining Eth and running a stake pool. Overall both are hard to do but the difficulty comes in different aspects. On one hand, mining Eth requires more hardware skills and an understanding of how it all works. You have to look into the aspects of monitoring, cooling, GPU card lifespan and hardware maintenance. Cardano requires less effort to manage the hardware aspects but requires a lot more effort to market.