{"id":396,"date":"2021-11-06T08:10:59","date_gmt":"2021-11-06T08:10:59","guid":{"rendered":"https:\/\/MrRealFi.com\/?p=396"},"modified":"2021-11-06T08:11:00","modified_gmt":"2021-11-06T08:11:00","slug":"what-is-ispo","status":"publish","type":"post","link":"https:\/\/MrRealFi.com\/what-is-ispo\/","title":{"rendered":"What is Initial Stake Pool Offering (ISPO)?"},"content":{"rendered":"\n<p><strong>Initial Stake Pool Offering, also known as ISPO or ISO is a new way for helping startup projects raise funds in the PoS (proof-of-stake) ecosystem, particularly, in Cardano.<\/strong><\/p>\n\n\n\n<p><strong>ISPO is a simple and no-risk method for investors to support a startup by delegating ADA to the startup&#8217;s stake pool. <\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#How_Does_an_ISPOISO_Work\" title=\"How Does an ISPO\/ISO Work?\">How Does an ISPO\/ISO Work?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#The_Risk_of_ISPO_for_Delegators\" title=\"The Risk of ISPO for Delegators\">The Risk of ISPO for Delegators<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#How_to_Participate_in_an_Initial_Stake_Pool_Offering_ISPO\" title=\"How to Participate in an Initial Stake Pool Offering (ISPO)\">How to Participate in an Initial Stake Pool Offering (ISPO)<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#SundaeSwap_ISO_vs_MELD_ISPO\" title=\"SundaeSwap ISO vs MELD ISPO\">SundaeSwap ISO vs MELD ISPO<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#Top_3_Most_Anticipated_Initial_Stake_Pool_Offering_in_2021\" title=\"Top 3 Most Anticipated Initial Stake Pool Offering in 2021\">Top 3 Most Anticipated Initial Stake Pool Offering in 2021<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#1_MELD_ISPO\" title=\"1. MELD ISPO\">1. MELD ISPO<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#2_SundaeSwap_ISO\" title=\"2. SundaeSwap ISO\">2. SundaeSwap ISO<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#3_Empowa_ISPO\" title=\"3. Empowa ISPO\">3. Empowa ISPO<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#The_Advantages_of_Initial_Stake_Pool_Offering\" title=\"The Advantages of Initial Stake Pool Offering\">The Advantages of Initial Stake Pool Offering<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#The_Disadvantages_of_Initial_Stake_Pool_Offering\" title=\"The Disadvantages of Initial Stake Pool Offering\">The Disadvantages of Initial Stake Pool Offering<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/MrRealFi.com\/what-is-ispo\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_an_ISPOISO_Work\"><\/span>How Does an ISPO\/ISO Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before you can understand how an ISPO works, you need to have a rough idea of how PoS (proof-of-stake) works. <\/p>\n\n\n\n<p>To put it simply, this is how PoS (proof-of-stake) works: <\/p>\n\n\n\n<ul><li>The more delegators or ADA you have in your node, the higher the chances of validating a transaction. <\/li><li>The more transactions you validate, the more ADA rewards you can earn. <\/li><li>The more rewards you earn, the more you can fund your startup project. <\/li><\/ul>\n\n\n\n<p>An ISPO works this way:<\/p>\n\n\n\n<ul><li>You, as a startup, can create a node to allow delegators an opportunity to stake their ADA to your staking pool. (You can get pool operators to host your node for you) <\/li><li>You can earn larger ADA rewards to fund your startup growth since you now have more delegators staking to your pool. Remember, the more delegators, the more rewards you earn.<\/li><li>Instead of giving ADA rewards back to your delegators, you reward them with your own unique token which may or may not rise in proportion to ADA&#8217;s value. <\/li><\/ul>\n\n\n\n<p>That, in essence, is how an ISPO works. <\/p>\n\n\n\n<p>To recap:<\/p>\n\n\n\n<ol><li>Create a Cardano node<\/li><li>Invite investors\/delegators to your staking pool<\/li><li>Earn ADA rewards to fund your startup<\/li><li>Reward investors\/delegators your own token instead of ADA<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Risk_of_ISPO_for_Delegators\"><\/span>The Risk of ISPO for Delegators<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Technically speaking, this is a no-risk investment even if the startup fails since ADA holders will not lose their ADA by delegating to a stake pool. <\/p>\n\n\n\n<p>The most an investor could lose is the average 5% annual returns if they were to delegate to a normal Cardano stake pool. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Participate_in_an_Initial_Stake_Pool_Offering_ISPO\"><\/span>How to Participate in an Initial Stake Pool Offering (ISPO)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Purchase ADA on an Exchange such as <a href=\"https:\/\/accounts.binance.com\/en\/register?ref=NQ63II49\">Binance<\/a> or <a href=\"https:\/\/www.coinbase.com\/join\/say_if4t\">Coinbase<\/a><\/li><li>Download a Cardano wallet such as <a href=\"https:\/\/daedaluswallet.io\">Daedalus<\/a> and <a href=\"https:\/\/yoroi-wallet.com\/#\/\">Yoroi<\/a> (<a href=\"https:\/\/namiwallet.io\">NAMI<\/a> wallet users cannot participate in ISPO at the time of writing this)<\/li><li>Transfer your ADA from the exchange to your wallet<\/li><li>Delegate your ADA to an ISPO staking pool in your Cardano wallet (see below for several ISPO launches)<\/li><li>Earn project&#8217;s token every epoch or every 5 days<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SundaeSwap_ISO_vs_MELD_ISPO\"><\/span>SundaeSwap ISO vs MELD ISPO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Initial Stake Pool offering model was first introduced by the <a href=\"https:\/\/sundaeswap.finance\">SundaeSwap<\/a> community in early 2021. It was initially named ISO. <\/p>\n\n\n\n<p>However, SundaeSwap ISO was delayed and <a href=\"https:\/\/www.meld.com\">MELD<\/a> renamed the model to <a href=\"https:\/\/www.meld.com\/ispo\">ISPO<\/a>. SundaeSwap was the first to come out with the model; MELD was the first to execute. <\/p>\n\n\n\n<p>Nevertheless, ISPO and ISO are basically the same things. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_3_Most_Anticipated_Initial_Stake_Pool_Offering_in_2021\"><\/span>Top 3 Most Anticipated Initial Stake Pool Offering in 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_MELD_ISPO\"><\/span>1. MELD ISPO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Start Date: <\/td><td>1 July to 27 October 2021<\/td><\/tr><tr><td>End Date:<\/td><td>8 December 2021<\/td><\/tr><tr><td>Reward supply:<\/td><td>20% of the total supply<\/td><\/tr><tr><td>Locked Period:<\/td><td>Until 8 December 2021<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>There is a total of 10 MELD stake pools. You can earn 100% MELD tokens or 50% MELD and 50% ADA depending on which stake pool you delegate to. <\/p>\n\n\n\n<p>For more information, check out <a href=\"https:\/\/www.meld.com\/ispo\">MELD&#8217;s ISPO details<\/a> and <a href=\"https:\/\/www.meld.com\/dashboard\">ISPO dashboard<\/a>. <\/p>\n\n\n\n<p><em>Update 27 October 2021: MELD ISPO is currently full. <\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_SundaeSwap_ISO\"><\/span>2. SundaeSwap ISO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Date:<\/td><td>Q4 2021<\/td><\/tr><tr><td>Duration:<\/td><td>5 Epochs (25 days)<\/td><\/tr><tr><td>Reward supply:<\/td><td>1% each epoch (5% of the total supply to ISO participants)<\/td><\/tr><tr><td>Locked period:<\/td><td>None. You are free to withdraw your ADA at any time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>SundaeSwap will also be implementing a Whale Control mechanism by reducing rewards to large ADA holders. <\/p>\n\n\n\n<p>This makes the ISO a more decentralized and fairer launch that will ultimately benefit the majority of smaller ADA holders. <\/p>\n\n\n\n<p>For more information on SundaeSwap ISO, read <a href=\"https:\/\/sundaeswap.finance\/posts\/iso-update-3\">this article<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Empowa_ISPO\"><\/span>3. Empowa ISPO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Start date: <\/td><td>7 October 2021<\/td><\/tr><tr><td>End date:<\/td><td>When 2% of token supply has been fully allocated<\/td><\/tr><tr><td>Reward Supply:<\/td><td>4,000,000 EMP tokens (2% of the total supply)<\/td><\/tr><tr><td>Locked period:<\/td><td>You are free to redelegate your ADA at any time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The duration of Empowa&#8217;s ISPO is roughly around 20 epochs based on the amount of delegated ADA in their stake pools: <a href=\"https:\/\/adapools.org\/pool\/d27af8f35c3d336500ff190011cd01edd1f84254002fad053d326356\">EMP1<\/a> and <a href=\"https:\/\/adapools.org\/pool\/4c419cdf15bae400b98aa9ec9a7d3de6dafc9eb258b31f172c891dd5\">EMP2<\/a>. <\/p>\n\n\n\n<p>Holders of Empowa&#8217;s Founding Community NFT have a higher reward in their ISPO. For more information, read their <a href=\"https:\/\/empowa.io\/faq\/\">FAQs<\/a> and <a href=\"https:\/\/empowa.io\/ispo\/\">ISPO details<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Advantages_of_Initial_Stake_Pool_Offering\"><\/span>The Advantages of Initial Stake Pool Offering<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>You can use your current ADA to get access to ISPO tokens. In other words, you can get free tokens just by holding Cardano<\/li><li>It is secure and easy to participate in an ISPO. All you need is a Cardano wallet such as <a href=\"https:\/\/daedaluswallet.io\">Daedalus<\/a> or <a href=\"https:\/\/yoroi-wallet.com\/#\/\">Yoroi<\/a> and you can stake to an ISPO pool just like you delegate to any Cardano pool<\/li><li>Little-to-no risk. Even if the project fails, you do not lose your initial ADA capital<\/li><li>Most ISPOs do not lock your ADA. You are free to redelegate or withdraw your ADA at any time<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Disadvantages_of_Initial_Stake_Pool_Offering\"><\/span>The Disadvantages of Initial Stake Pool Offering<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The purpose of ISPO is to raise funds and hopefully build a community around the project. <\/p>\n\n\n\n<p>However, with a no-risk model like an ISPO, investors\/delegators may: <\/p>\n\n\n\n<ul><li>Move on to the next project as soon as they feel they earned enough tokens<\/li><li>Sell their tokens as soon as the project hits the exchanges to make a quick buck<\/li><\/ul>\n\n\n\n<p>No-risk may equal no loyalty in certain endeavors. But I could be totally wrong&#8230; I hope I am wrong. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An ISPO is an excellent way for new projects to raise funds and for investors to earn extra tokens without risking their ADA. <\/p>\n\n\n\n<p>ISPO is a novelty in Crypto but I believe it will soon be the norm for startups launching in the PoS ecosystem. <\/p>\n\n\n\n<p>Are you a fan of the ISPO model? If so, why? Let me know in the comment section below. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Initial Stake Pool Offering, also known as ISPO or ISO is a new way for helping startup projects raise funds in the PoS (proof-of-stake) ecosystem, particularly, in Cardano. ISPO is a simple and no-risk method for investors to support a startup by delegating ADA to the startup&#8217;s stake pool. Page Contents How Does an ISPO\/ISO [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/posts\/396"}],"collection":[{"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/comments?post=396"}],"version-history":[{"count":2,"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/posts\/396\/revisions"}],"predecessor-version":[{"id":652,"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/posts\/396\/revisions\/652"}],"wp:attachment":[{"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/media?parent=396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/categories?post=396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/MrRealFi.com\/wp-json\/wp\/v2\/tags?post=396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}