INITIAL POOL STAKE OFFERINGS IN CARDANO: MELD Labs
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.
MELD Labs — reviewed by Ivy Crypto
This ISPO caused serious controversy. It was the first to propose the exchange ADA staking rewards for their own token (MELD). A step that apparently not everyone was ready to make, me included. So much FUD on twitter about the team, the appropriation of the rewards and the centralization of the blockchain. Over time Meld proved itself, securing partnership after partnership to the point that many of its strongest opposers quieted down. I, for one, regret not having more exposure and listening less to the so called OG’s filling their lungs to criticize anything that is not built according to their standards. Nowadays I know better, I wish I had been wiser then. Think for yourself!
As I will show in the ISPO’s APR section, exchanging the ADA staking rewards for MELD constituted no issue, as it generated great value to its delegators. But what about the centralization? MELD had at one point 10 operating pools, which at full saturation is over 650M ADA per epoch. This value likely overestimates the stake delegated to the ISPO, because the pools opened gradually and weren’t full the whole time, but it shouldn’t be too far off. The issue arose both from the combination of the large amount of stake delegated, at least 2–3x larger than in most ISPO’s, and the span of the ISPO (32 epochs). The community understood that even projects adding value to the Cardano ecosystem can have the negative effect of temporarily contributing to its centralization.
As far as I could tell, since I didn’t participate from the start, the ISPO ran smoothly. Until the end, all important dates and steps to be taken were announced clearly and timely to the delegators. As for the rewards dashboard, it had the essential information made available, but without an epoch breakdown.
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!