It is important to understand what saturation means with Cardano staking pools when selecting which one to delegate to.
A validator's pool with high saturation compared to a low one means that more ADA has been delegated to it. The more ADA a validator's pool has, statistically the more they will be chosen to mint blocks. On top of the saturation level a pool has, there is also an element of random selection when it comes to which pool will be chosen to mint the next blocks.
When minting blocks, the validator will receive rewards and distribute it among the delegators in that pool.
In order to promote decentralisation, Cardano protocol caps the amount of rewards for each pool. Therefore if a pool is oversaturated, they will have to distribute the maximum rewards they receive for minting blocks with all the ADA that was delegated in their pool. This leads to lower rewards per each ADA delegation.
One has to consider their strategy when deciding which pool to select: Whether they would rather choose a pool with high saturation that will mint more blocks and distribute rewards more evenly and frequently, or choose a less saturated pool that will mint fewer blocks but distribute greater rewards when it gets a lucky streak.
For more information on staking Cardano (ADA) with P2P Validator, visit p2p.org/cardano.
For additional staking support, visit the P2P Cardano support center.
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