Ardana Kicks Off Initial Stake Pool Offering With Big Incentives For Delegators

The Cardano-based DeFi hub Ardana has finally kicked off its first “initial stake pool offering” with its native token DANA. The ISPO runs from July 4 until January 5 next year, and provides Ardana ecosystem backers with the opportunity to enjoy some big bonuses in return for their support. 

Ardana has developed a DeFi ecosystem atop of Cardano that includes the Danaswap Automated Market Maker DEX and a lending service for holders of its dUSD stablecoin. 

It also provides a way for projects building on Cardano to raise funds via the Ardana Stake Pool Alliance. Through the ISPO, users can stake DANA tokens in an alliance of “laser-targeted stake pools” to support the Ardana decentralized stablecoin ecosystem. 

ISPOs are an alternative to traditional ICOs, where investors donate ADA in return for a project’s native token. With ISPOs, investors earn rewards in relation to a project’s long-term stability and performance by staking the tokens they receive. The longer an investor stakes their coins in an Initial Stake Pool, the greater the rewards they can expect to earn. 

Ardana believes that ASPA stake pools are critical to the growth of Cardano’s ecosystem, giving the community a novel way to support new projects and generate yield on their ADA. The idea is that this method supports more sustainable DeFi projects. Now, it’s launching its ISPO to reward long-term dedication for those who stake within ASPA member pools. 

Ardana said in a blog post on Medium that the most patient delegators will benefit from a higher rate of incentives in return for their greater loyalty. In other words, the longer they stake, the bigger rewards they will earn. So someone who delegates for 20 epochs would earn higher rewards than someone who only does so for five epochs. 

ISPO delegators will receive their rewards from the liquidity mining portion, with distribution taking place through the Cardano dispensing service Drip Dropz. Delegates will be able to claim their first rewards on that platform at 21:45 UTC on July 9, when the next epoch begins. Rewards owed will be claimable at the start of each epoch, Ardana explained, meaning an investor’s distribution share between two epochs will only be made available once the latter epoch has finished. Should the delegator neglect to claim their rewards, they’ll be added to the following tranche at the next epoch. 

The more exciting news is the big bonuses on offer for ISPO supporters who staked in ASPA pools prior to March 31, Ardana said. The ISPO is designed to reward these loyal supporters with a share of the 2.5 million DANA token pool set aside for the purpose. 

The way it works is that, the longer someone has delegated to an ASPA pool, the greater their bonus multiplier will be. There is no minimum stake required to obtain these bonuses, because it’s based solely on loyalty to the pools. 

Supporters of the ASPA pools will benefit from a bonus multiplier that increases by 0.05X for each epoch, capped at a 2x multiplier. 

Ardana provides a helpful example of how it all works: If someone first delegated on April 29 and keeps doing so until July 14, they will have earned 14 epochs x 0.05x, meaning they’ll earn a 0.7x bonus multiplier. When the ISPO starts, they’ll also earn DANA tokens at a 1.7x bonus multiplier. Those who staked before March 31 therefore receive the full 2x bonus multiplier from the get go. 

Ardana said that besides raising money for multiple exciting Cardano projects, the ISPOs will encourage greater decentralization through a fairer distribution of incentives for smaller participants. At the same time, multiple validators will help to improve the performance and security of the network, Ardana said. In other words, if you’re a believer, there’s every reason to get staking, for as long as you can. 

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