INITIAL POOL STAKE OFFERINGS IN CARDANO: Cardano Mixer
This article is a subsection of a larger article “INITIAL POOL STAKE OFFERING IN CARDANO: a critical overview”
- This is not financial advice. I have no training whatsoever in the finance sector and I am in no way or capacity a licensed financial advisor.
- I recently became an ambassador for Flickto, which is also running an ISPO.
Cardano Mixer — reviewed by Vlasin
This ISPO launched very recently and offers variable rewards depending on pool saturation, with 500,000 tokens distributed per epoch. One of its distinctive features is the inclusion of a parameter in the rewards calculation that guarantees a minimum level of rewards irrespective of pool saturation (Pmin). ISPOs with variable rewards schemes can experience high volatility in the rewards offered to the delegators as a result of the variation in stake delegated to the pool. The inclusion of such a parameter prevents reward ratios from dropping below desired values. Very ingenious.
Another interesting feature is the dynamic aspect of the lottery, which changes with pool saturation. The percentage of tokens allocated to the lottery (10%) remains the same, but the number of lottery winners increases with pool saturation. Naturally, the amount of rewards per each winner decreases proportionally. Nevertheless, on a basic level this recognizes that more people should win at higher saturations to keep the ratio of winners somewhat constant relative to pool saturation.
The rewards calculator is overly simplistic and does not show an epoch breakdown of the rewards or the percentage of tokens distributed in the ISPO.
It took over six months of closely following ISPO’s to put this together and ultimately for the benefit of the whole Cardano community. Please contribute. Funds raised will be used to buy an engagement ring. Wish me luck!