If you haven’t heard this term before it wouldn’t surprise me. Stake pools are relevantly new.
**Pool Splitters** are pool operators that have done so well, that they need to create more pools because their first is at the limit. Or they are doing well enough to create another pool even before saturation, say 50% saturation.
As a business model its great. They do well, and want to keep doing well, so they create another pool.
Most are successful YouTubers.
There are a few problems with this though.
First, lets talk about what you really care about, yourself.
As a delegator, your want best rewards. Sure you may like the cause of the content, but at the end of the day you want the most ADA you can get for delegating.
If you look at these pool splitters most have 4-5% margins. Even when the stake is still low, its set the same.
So while I agree 5% margin for a fully saturated pool might not be bad, its certainty not giving the best rewards to their delegators.
Then you have the bigger problem of supporting decentralization and new pools.
If the ideal pool count is 500 today, that means the best possible layout is 500 unique entities running 500 different single pools.
But if you look at the numbers [https://adapools.org/groups](https://adapools.org/groups) you’ll see thats not the case.
63 pools are Binace (that’s a whole other problem)
29 pools for PCT
9 pools New Girl
I could go on, check out the list yourself
Single Pool operators hold only 22% of all the stake.
The rest is held by groups with more then 1 pool, and a third of ADA is still on Exchanges staked with them.
In fact of the top 500 pools, you won’t find many that only have 1 pool.
So if you want the **BEST** returns, and to **support the best decentralization**, choose one of the many single pool operators out there.
Check out their website.
Check out their team.
Check out their infrastructure (many are not ready for smart contracts)
As an added bonus, they will likely give you the best personal attention as well, because they are trying to grow their pools.
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