Initial Stake Pool Offering (ISPO)

What is an ISPO?

An ISPO is a new fundraising mechanism that allows delegators of a POS (Proof-of-Stake) network to divert staking rewards towards a project of their choice and get project tokens in return.

It is a differentiative machanism that allows the community to support projects without putting in risk their capital and assets, but instead leveraging the network's reward incentives.

ISPO’s are only possible on the Cardano blockchain because of its unique stake pool delegation structure.

GADA’s ISPO

Users who wish to participate in the ISPO can delegate their ADA using a Cardano wallet (Yoroi, Gerowallet, NamiWallet, Daedulus, etc.) to the public GADA stake pools (tickers: GFIN1 and GFIN2) for any period which they choose. Depending on the duration and quantity of ADA staked delegators will be rewarded GADA tokens.

Participants of the Initial offering can delegate any amount of ADA to GADA ISPO pools for any chosen duration of the offering. Users will have the ability to unstake their coins at any time. GADA token rewards are calculated for each Epoch (5 days).

Benefits of an ISPO

The ISPO discourages short-term engagements since it attracts delegators and incentivizes to focus on long-term rewards.
Staking helps decentralize the chain.
Compared to other fundraising models an ISPO is riskfree. Community members don't risk their ADA.
The increase number of stake pools promotes network decentralization.
Delegators can measure the credebility of staking pools, eliminating the risk of scams and fraudulent projects.
The demand for tokens distributed by ISPO projects is growing constantly, increasng the demand for ADA and consequently giving more exposure to the ecosystem.
It's an effective marketing tool for project developers to build their communities.

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Last updated 2 years ago