Daedalus Shelley testnet 1.3.0-STN2 – Walkthrough video

Hi, this is Darko. I’d like to give you a walkthrough of Shelley
features with Daedalus 1.3.0-STN2 for the Shelley testnet. You can follow this walkthrough to experience
the delegation mechanics and understand how the rewards work, using testnet ada before
this becomes available on the Cardano mainnet later this summer. This new version of Daedalus enhances the
delegation features with an improved ranking and rank calculation system based on the intended
amount of delegated stake and added functionality for retiring stake pools.

Also, rewards are now included in your wallet
balance and spendable using regular ada transactions. First, download the new 1.3.0-STN2 version
of Daedalus from the testnets.cardano.org website. You can find the installers in the ‘Shelley’
section, here in the ‘Getting started’ menu on the ‘Daedalus wallet for the Cardano
Shelley testnet’ page. Download the installer for your operating
system, launch it, and complete the installation steps. After installation completes you will find
the new Daedalus Shelley Testnet v3 application installed. Launch it by clicking on the icon. Choose the language, number, date, and time
formats you prefer and click ‘Continue’ to complete the initial setup. Scroll through and read the terms of service
agreement, tick the box if you agree with it, and click ‘Continue’. The splash screen is explaining the purpose
of this version of Daedalus. Click the ‘I understand’ button to close
it.

You can always bring it back by clicking on
this button with the Cardno logo and the name of the Cardano network we are connected to. Daedalus will quickly connect and synchronize
with the blockchain in the background. Since this is the second iteration of the
Shelley testnet network your wallets from the first, balance check iteration of the
network, will be empty here. So the first thing you need to do is create
a new, empty wallet and fund it using the testnet Faucet. Click the ‘Create’ button to start the
wallet creation process. Name your wallet and set a spending password. Click ‘Create Shelley wallet’ button to
continue. This version of Daedalus works with the Shelley
testnet and test ada has no value. But I would like to take this opportunity
to remind you that wallets can only be recovered using the wallet recovery phrase. So it needs to be kept safe and secure. The easiest way to keep it secure is by never
storing it digitally or online. If you want to store it digitally, the best
way to do that is by using one of the password manager applications that you know how to
use and trust.

Password managers are also recommended for
generating and storing spending passwords. Click ‘Continue’ and write down your wallet
recovery phrase. When you are done confirm that by clicking
on the button. Click each of the words from your wallet recovery
phrase in the correct order. Tick the boxes to confirm that you understand
how to keep your wallet recovery phrase safe, and to confirm that you understand that wallets
can only be recovered using the wallet recovery phrase. And click ‘Confirm’. Your newly created wallet will quickly synchronize
with the blockchain. This wallet is empty, so the first thing we
need to do is to get some test ada. You can copy a receiving address from your
wallet receive screen. Go back to the Shelley testnet website and
open the Faucet from the Tools menu. Paste your receiving address in the form,
tick the box to confirm that you are not a robot, and click the Request funds button. The Faucet will send some test ada to your
wallet. Let’s go back to the wallet summary screen
and wait for the test ada to arrive. There. Our wallet is now funded with test ada and
we can start testing the Shelley features! This icon under the wallets icon in the sidebar,
which depicts a decentralized network, takes us to the Shelley user interface.

We have 3 tabs here: ‘Delegation center’,
‘Stake pools’, and ‘Rewards’. Here, on top of the Delegation center, we
can see the details of the current Cardano epoch on the Shelley testnet. And the countdown until the start of the next
epoch. Epochs on the Cardano mainnet last 5 days,
but here on the Shelley testnet epochs are only 6 hours long to make testing quicker. It the ‘Wallets’ section we can see our
wallet and its delegation status, which is currently ‘Undelegated’. The important thing to understand here is
that changes to delegation preferences take effect after both the current and the next
Cardano epochs have completed. This means that if we delegate our wallet
now, that will take effect in about 6 hours.

Less than 1 hour remaining in the current
epoch plus the 6 hours needed for the next epoch to complete. Let’s explore stake pools before delegating
our wallet. Here we have a list of all available stake
pools on the Shelley testnet which have completed all of the registration steps. A lot of stake pools, represented by the small
tiles, fit here on one screen. This is intentional. We made sure that we are not displaying only
a couple of stake pools on the first page. Because those stake pools would get almost
all of the attention. For this reason, we don’t get to show a
lot of details about stake pools before we open the details window. You can identify stake pools using these ticker
symbols, which are similar to ticker symbols for stocks on the stock market. The big, color-coded number is the pool rank. Pools with better ranking are green, and this
gradually fades to orange, then red for stake pools with the lowest ranking. The ranking system is much more sophisticated
than the one used on the Incentivized testnet. Before I explain the ranking feature I have
a disclaimer to state: This feature is intended for informational purposes only.

You should always base your decisions on your
own research and assessment of the stake pools and the risks involved. The ranking is based on sophisticated game-theory
research that orders pools by the rewards that we should expect from delegating to them. Everything is taken into account, the cost
of operating a pool and the profit margin set by the stake pool operator, the performance
of the pool, and the saturation – the amount of stake a pool has accumulated. The ranking system is promoting pools that
are reliable, have not yet reached saturation, and have low cost and margin. This significantly simplifies making a good
choice when delegating. We just need to choose one of the pools with
a high ranking! The rank is also based on the amount of stake
we intend to delegate. Because the rewards are capped for stake pools
when they reach saturation. This means that oversaturated pools will earn
the same rewards as if they were right around the saturation point, so they will earn fewer
rewards per the amount of stake they control. And for this reason, they will drop in ranking. Here on the top of the screen, we have a slider
for the amount of stake you intend to delegate.

Alternatively, you can use this dropdown to
select the amount of stake from one of your wallets. Or the combined amount of stake from all of
your wallets in case you have multiple wallets and you intend to delegate all of them to
the same stake pool. The slider ranges from a minimum of 10 ada
to the saturation point for a single pool. Cardano protocol specifies the intended number
of stake pools that will be producing the majority of the blocks. This number of pools is carefully decided
on to balance the cost of operating the network, the desired level of decentralization, and
the technical constraints of a global, decentralized network. The intended number of block-producing pools
on the Shelley testnet is currently set to 250. With the total amount of stake in the network
of 11 billion, we get to 44 million for the saturation point of a single pool. That is why 44 million is the maximum value
for the slider. Because delegating more than that would make
even an empty pool oversaturated.

At some point, the network will reach equilibrium
after running for a certain number of epochs. When that happens you just need to make sure
you are delegating to one of the top 250 pools because all of those pools should give you
almost the same rewards. You just need to check from time to time and
change your delegation choice if case the pool you are delegating to significantly falls
in ranking. I would like to highlight that this number
of stake pools is currently set to 250 for the Shelley testnet. It will be different on the Cardano mainnet
and it will change over time as the network grows and matures. The initial number will be decided on by the
researchers and engineers. But later on, you and other ada holders will
be deciding on this number, and all other network parameters and changes, using the
voting power which comes from owning stake in the system. Even though just the ranking is enough to
make a good delegation choice you can explore and see more details about each pool by clicking
on these tiles.

Notice that some pools have a red icon on
their tile. These are pools that are retiring and will
stop operating. You can see when the retirement will happen
in stake pool details. Let’s pick a pool and delegate our wallet. I will choose the top-ranked pool because
I trust the ranking system. I can launch the delegation wizard by clicking
on the ‘Delegate to this pool’ button from stake pool details. The delegation wizard has 3 steps. Let’s complete them. First, let’s select our wallet. The pool is already selected since we’ve
launched the delegation wizard from stake pools details of this pool. Let’s keep that choice and continue. Delegation choice needs to be posted on the
blockchain. That’s a transaction so it requires paying
fees. I will enter my spending password to sign
the transaction and to confirm my delegation choice. There. My wallet is now delegated. It will take 6 hours for the delegation to
take effect because the current and the next Cardano epochs need to complete.

And one epoch later… I will get my first rewards! When that happens I will be able to see the
rewards I’ve earned here on the rewards screen. So, that completes our walkthrough. I hope you enjoyed it and found the explanations
useful. Download this version of Daedalus yourself
and try it out. And, please give us your feedback and report
any issues found. As always, use the help menu to submit a support
request..

You May Also Like