How does the rewards cycle work:
When delegating to a Cardano stake pool, you will initially need to wait 4 epochs (20 days) before gaining rewards. After 20-day period you will start to earn rewards every epoch (5 days) as long as the pool is minting blocks. This period will only happen the first time you decide to start staking your Cardano to a stakepool. If you change from stakepool, your rewards will seamlessly continue, as long the other pool is also minting blocks.
So, let’s visualize an example: Let’s assume, in Epoch 200 you delegate some Ada. Just at the beginning of Epoch 201 a so called “snapshot” will be taken, “snapshotting” the value of your walletcontent. You don’t have to turn on your computer, it is just taking a snapshot from the ledger. If you want to increase your stake, make sure this will be added to your wallet before this moment, so it will become active in epoch 202.
- In Epoch 202 this stake will become “Active”. That means that stake, entered 2 epochs earlier in the pool, will counts towards the network minting and rewards algorithm. (in other words: when your stakepool mints a block, it is counting for your rewards) If you move from/to another pool: no worries, rewards will count on.
- In Epoch 203 rewards are calculated. The stake pool continues minting blocks.
- Epoch 204: Reward time! You will receive for the first time your rewards from 1FMLY pool.
- Imagine you still decided to leave 1FMLY in epoch 204. The rewards will continue till epoch 207 as the stake will remain active in 1FMLY Pool till epoch 205. So, in epoch 207 you will receive your last rewards. In epoch 208 you will receive rewards from your new delegated stake pool. (if they are minting blocks)
Detail: When the snapshot is taken, just after the beginning of the new Epoch, you have time till the next snapshot to move your ADA’s out of your wallet to, for example, trading. If you be sure to move them back in before the next snapshot, your full amount will be counted in again.
Still a little confused about this schedule? Contact us at Telegram we will be happy to do additional explaining.