Cardano’s reward infrastructure is set up as follows: Stake pool operators run specialized software on computer servers, forming “stake pools” which act as nodes in the network. Individual ADA holders “delegate” their ADA holdings to stake pools. Stake pools produce blocks in proportion to the amount of ADA that is delegated to them. Stake pools receive rewards in ADA in exchange for producing blocks and keep a portion of those rewards for themselves (known as a stake pool “fee”). After the stake pool collects its fee, the remaining rewards are distributed to all individual ADA holders who
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