Revised estimated rewards to around 2.3% yearly return.
Historically, the staking pool Ada North Pool has had a return of over 4% over time in its initial years, however, this has trended downwards as it has for all other staking pools on Cardano. For Ada North Pool, explorer data from cexplorer.io suggests a current historical return of 3.1 (at the time of writing this article). As these numbers are affected by factors not known in advance, such as fees from the protocol transactions, future performance is simulated. A Monte Carlo simulation of future returns in 2025 suggests our staking pool will have a lower bound of 2.47% to a higher bound of 2.59% rewards as of writing this article and based on this we are suggesting around 2.3% rewards going forward (including NBX fee for custodial staking).
We will revisit these numbers if protocol parameter changes related to protocol staking rewards or any other factors influencing protocol rewards changes, such as fees collected or reserve depletion rate, and we see over time that this affects the reward rates. We hope for understanding that these are moving variables and not under the control of NBX, such as protocol fees from transactions on the blockchain, so any rewards we suggest are always estimates. We will update our estimates from time to time based on available data from the blockchain.
