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59 changes: 27 additions & 32 deletions docs/08-operating-a-stake-pool/02-about-stake-pools.mdx
Original file line number Diff line number Diff line change
Expand Up @@ -6,39 +6,34 @@ metaTitle: About stake pools, operators, and owners
This section includes an overview of stake pool operations and explains the ways
of creating and managing your own stake pool.

A [stake pool](/learn/stake-pools) is a reliable server node that holds and
maintains the combined stake of various stakeholders in a single entity. Stake
A [stake pool](/learn/stake-pools) is a reliable server node that represents the
combined stake of various stakeholders in a single entity. Stake
pools use the [Cardano node](https://docs.cardano.org/learn/cardano-node/) to
validate how the pool interacts with the network and are responsible for
transaction processing and block production.

Successfully operating a stake pool includes the roles of a stake pool operator
and one or more stake pool owner(s). It is important to note that there is a
conceptual difference between these two roles:

- A _stake pool operator_ is a person who is assigned responsibility for setting
up and keeping the stake pool running, which means that they own or rent a
server, hold the key of the stake pool, and hold responsibility for running
and monitoring the node. With their key, a stake pool operator can sign
blocks, register, re-register, or retire a stake pool, and post updated
certificates. A stake pool operator is also empowered to exclude some stake
pool owners during re-registration.
- A _stake pool owner_ is a person who pledges their stake to the pool to
increase the pool’s reward earning capacity and desirability. The ability of
the owner to [pledge stake](/learn/pledging-rewards) provides protection
against Sybil attacks.

Usually, the stake pool operator and the owner is the same person, however, a
stake pool can also have multiple owners, who pledge their stake to form one
larger pool to ensure it is competitive. Even in this case, there is still only
one stake pool operator who is responsible for stake pool processes.

It is essential that all stake pool owners trust a stake pool operator. All
operators’ and owners’ rewards are paid out into a single shared reward account
associated with the reward address of the pool. The holder of the rewards
account pays out rewards independently to the owners.

This makes it clear to all parties that an agreement is needed to define when
form the backbone of the Cardano network by processing transactions and validating and producing blocks.

Stake pool roles include a stake pool operator
and one or more stake pool owner(s). It is important to note the
conceptual differences between the two:

- A _stake pool operator_ is the owner of the cold and VRF signing keys used to create the stake pool.
The operator configures and maintains stake pool infrastructure and is responsible for monitoring and .
The operator is able to register, re-register, or retire a stake pool, update
certificates, and ensure that the block-producing node is able to sign and validate blocks and process transactions.
- A _stake pool owner_ is determined by the stake signing-keys used in stake pool creation. The owner's
[pledge stake](/learn/pledging-rewards) is intended to
provide protection against Sybil attacks.

Usually, the stake pool operator and the owner are the same person. However, a
stake pool can have multiple owners that choose to combine their pledge. It should
be noted that the stake pool's declared pledge must be met by the combined stake in the
owner's wallets and failure to do so will result in the pool being unable to produce blocks.

All operator and owner rewards are paid out into a single rewards account
associated with the reward address of the pool. If a stake pool has multiple owners, it is
up to the owner of the rewards account to distribute rewards to the operator and
other owners.

An agreement is likely needed to define when
and how the accumulated rewards in a shared account should be split. For
example, they can agree to have the operator control the shared account, or they
could choose to use a multisig account.
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