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Update glossary.rst
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nahern committed Jul 1, 2020
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Expand Up @@ -71,5 +71,3 @@ Cardano Glossary
- the percentage of total ada rewards that the stake pool operator takes before sharing the rest of the rewards between all the delegators to the pool. A lower profit margin for the operator means they are taking less, which means that delegators can expect to receive more of the rewards for their delegated stake. A private pool is a pool with a profit margin of 100%, meaning that all the rewards will go to the operator and none to the delegators.
* - cost per epoch
- a fixed fee, in ada, which the stake pool operator takes every epoch from the pool rewards to cover the costs of running a stake pool. The cost per epoch is subtracted from the total ada that is rewarded to a pool, before the operator takes their profit margin. Whatever remains is shared equally among the delegators.
* - saturation
- a term used to indicate that a particular stake pool has more stake delegated to it than is ideal for the network. Saturation is displayed as a percentage. Once a stake pool reaches 100% saturation, it will offer diminishing rewards.The saturation mechanism was designed to prevent centralization by encouraging delegators to delegate to different stake pools, and operators to set up alternative pools so that they can continue earning maximum rewards. Saturation, therefore, exists to preserve the interests of both ada holders delegating their stake and stake pool operators.

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