INITIAL POOL STAKE OFFERINGS IN CARDANO: Flickto

by THE.ONE.OR₳CLE

This article is a subsection of a larger article “INITIAL POOL STAKE OFFERING IN CARDANO: a critical overview”

Disclaimers

1. 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.

FLICKTO — reviewed by Pratik Doshi

One thing that stood out immediately in comparison to other projects was the clear and well-structured layout of the ISPO in the whitepaper. Following multiple ISPOs for months, it was never this easy to find all relevant details in a single place. They have set a great example for other projects.

Following my normal procedure of manually checking reward calculations, I found that the estimates for the first epochs were 45 times higher than intended. I reached out to alert the team, which in the meantime became aware of the issue and fixed the calculator. To my surprise, they decided to distribute the rewards at those rates as a bonus in a surprise airdrop. Understanding that their mistake could have weighed in on the delegator’s decision to allocate stake to the ISPO, the team chose to honor those expectations. Although unquestionably generous, this decision had direct effects on price shortly after listing, as people realized the value they had in hands. However, this is likely to constitute only a small short-term hiccup on price action.

The ISPO has run smoothly since then. In an uncommon practice, the team distributed the first 10% of the ISPO rewards to its delegators, which typically only receive their rewards sometime after the end of the ISPO’s. Furthermore, the remainder of the rewards were distributed at the beginning of Epoch 319, as the team prepared to launch the remastered version of the ISPO with even more attractive rewards. Essentially the team doubled the baseline reward rate and raised the loyalty bonuses by 5%, extending the ISPO until Epoch 350. See the full ISPO details here.

Figure 10. Percentage of total supply earned per epoch with 1M ADA staked. The OLD reward rates and bonuses of the first version of the ISPO (baseline, +5%, +10% and +15%) are shown in the red palette. The NEW reward rates and bonuses of the remastered version of the ISPO (baseline, 10%, 15% and 20%) are shown in greyscale.

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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.

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