Stakepad & Stakestarter the funding models of the future

  1. Project developers launch special purpose stakepools.
  2. Delegators to these stakepools may forego some (or all) of their ADA block rewards.
  3. Any block rewards forwent by delegators are retained by the development team and used for project development.
  4. In exchange for delegating to the SPO, delegators are rewarded by the developing project with the project’s token(s) or other reward.
  1. Because the ISO model is dependent upon widespread support among delegators and the establishment of one or more stakepools, until now it has only been feasible for projects with extensive marketing reach. Practically speaking, this has meant projects have needed a large amount of influence or marketing capital to successfully launch an ISO.
  2. A major problem has emerged of scammers setting up 100% margin pools mimicking ISO stakepools. In the case of Meld’s ISO, millions of $ADA were delegated to fraudulent stakepools, resulting in a large number of delegators missing out on $MELD rewards and tens of thousands of ADA being diverted from the ISO to malicious actors.
  3. Currently each new project that wants to launch an ISO has had to develop its own rewards model. And there has been a general lack of transparency about how much delegators will be rewarded, or when, to the point where large projects like MELD have launched ISOs without even first publishing specifics on the rewards ISO delegators would receive. This lack of clarity, and most projects’ lack of a rewards dashboard for delegators to track their ISO rewards, has led to projects spending inordinate amounts of time fielding questions on ISO reward issues. And ISO delegators have expressed frustration with the ISO reward claiming process — both with the lack of communication, and the fact they had to pay seemingly inflated fees to claim their rewards.
  4. In launching new stakepools for their ISOs, projects have cannibalized block rewards previously earned by small stakepool operators (SPOs). This trend could undermine the ability of small stakepool operators to maintain their pools, and prevent new, purpose-driven stakepools from being formed by small SPOs. This is not only a negative for the diversity and distribution of the Cardano SPO community. It’s also one more pressure that could reduce the decentralization of the Cardano blockchain. And because SPOs are very active and influential within the broader Cardano community, insensitivity on this issue could harm the image of a development team fundraising via SPO, and limit not only their fundraising success, but also limit Cardano user adoption of their project.
  • Allows SPOs to directly benefit from the growth of DeFi and other projects on Cardano;
  • Further decentralizes the Cardano network;
  • And presents an opportunity for SPOs to build trust with delegators as ISO partners.
  • Single-pool operators only
  • Pool size: 100k-2m ADA at time of snapshot
  • Fixed cost: 340 ADA
  • Minimum Pledge: 20k
  • Margin: less than 5%
  • Minimum of 1 block produced
  1. The selection can be put to community vote (the SundaeSwap model).
  2. The selection can be made via a random selection algorithm (the Minswap model).

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