An ISPO is a community-funding method unique to Cardano. In ISPOs, delegators stake their ADA to stake pools run by startups. Delegators give up their usual ~ 4-5% APY in ADA staking rewards in exchange for receiving a project’s native tokens. Startups use these staking rewards to fund development for their new venture. Cardano ISPOs have become one of the most egalitarian mechanisms for startups to raise funds from Cardano’s 3.5+ million community.
The World’s First Multi-Token ISPO by Genius X
Raising the bar further for ISPOs, Genius X introduces the world’s first multi-token ISPO for selected startups in the Genius X Accelerator Program. For the Cardano community, many delegators are interested in getting the tokens of various projects building on Cardano. The Genius X Multi-Token ISPO is an answer to that and gives the community access to multiple projects simultaneously. Delegators will get the tokens of five projects by delegating their ADA to the Genius X Multi-Token ISPO.
- Stake Pools — GENS1, GENS2, GENS3, and GENSX
- Staking Rewards Allocation — Staking rewards across the four stake pools will be split equally between each startup. Some of the ADA rewards will be paid to Genius X as fees to cover marketing and operations.
- ISPO period — The ISPO will last 25 epochs, or around four months.
- Project Vetting — Startups accepted for the multi-token ISPO need to have a proven track record of development and prospects for growth.
What are the benefits of joining the Multi-Token ISPO by Genius X?
- Unique opportunity to get tokens from multiple tokens within one ISPO. Delegators get five different tokens for their ADA delegation instead of the typical ISPO where they receive only one token. Operations of the Multi-Token ISPO will be handled by Maestro, a participant in the Genius X Accelerator Program.
- ADA delegated to a stake pool is non-custodial and therefore the user’s funds never leave their wallet, with the delegator always retaining full control of their funds.
- Delegator’s funds are never locked, with the delegator always maintaining the ability to withdraw or transfer their ADA.
- ISPOs have no KYC, making them accessible and pseudonymous, as anyone with any amount of ADA and a personal crypto wallet can participate.
- ISPOs are also low risk, as the principal of a delegator is never at risk. If the startup fails, delegators only risk losing the potential ~ 4-5% APY in staking rewards if a startup fails.
ISPOs have had great success in the Cardano ecosystem. Genius Yield had a successful ISPO that saw almost 15,000 participants delegate over 270 million ADA to receive the $GENS token over a five-month period. Genius X’s current ISPO has seen over 13,000 participants delegate over 200 million ADA.
The Multi-Token ISPO will start when epoch 363 begins at 21:45 UTC on September 12th, 2022, and will last 25 epochs. To participate, delegators will have to stake their ADA to any of the four GENS pools before epoch 364 begins at 21:45 UTC on September 17th, 2022. The multi-token ISPO ends at the beginning of epoch 388 at 21:45 UTC on January 15th, 2023.
Startups are also expected to have their token generation event (TGE) before May 23rd, 2023.
How to delegate your ADA to a GENS pool?
- Create a wallet— Get a personal crypto wallet that can hold ADA and that allows you to delegate your ADA. Some popular wallets for ADA include Eternl or Nami (before downloading any software always confirm you are using the correct site). Safely store your private keys, or spending password. Losing your keys could mean losing access to your funds forever.
- Buy ADA— Exchange your fiat currency for ADA through a trading platform, such as a centralized exchange (CEX). Some popular CEXs include Binance, Coinbase, Crypto.com, FTX, Kraken, or Kucoin. Your access to these exchanges can vary by your country of residence.
- After buying ADA on an exchange, transfer the ADA from the exchange to your personal crypto wallet.
- Delegate your ADA to one of the four GENS stake pools: GENS1, GENS2, GENS3, or GENSX—Open your personal crypto wallet and delegate to one of the four GENS stake pools. Follow the delegation instructions unique to your wallet of choice. For Eternl, click on the “Staking” tab and under “Filter Pools” type in the name of one of the GENS pools in the search bar. Press the “Delegate” button and complete the transaction which requires a small Cardano network transaction fee.
- Confirm your delegation—Confirm your delegation by going back to Eternl’s “Staking” tab where you should see the pool you are currently delegated to under “Delegated Pools”. On the “Account” tab in the “Rewards History” section, you’ll also see the pool listed for ADA staking rewards in upcoming epochs.
Below are the first five startups and their token allocation for the first cohort of the Genius X Multi-Token ISPO. The token allocation is around ~ 3% of each project’s total supply.
- Smart Places ($SMART), 900,000,000: Connect-2-Earn social matchmaking application incentivising real-life interactions
- Ledgity ($LTY), 82,800,000: Digital wealth management platform bridging Centralized and Decentralized Finance, bringing private banking to the masses
- Outlaws Brawl ($HYN), 300,000: A multiplayer online First Person Shooter (FPS) game set in the Hell Hyenas Motorcycle Club universe
- Reach Metaverse ($REACH), 16,650,000: ‘Metaverse-as-a-Service’ — Infrastructure and hosting provider
- Drunken Dragon ($DG), 60,000,000: An Autonomous Fantasy Franchise with Decentralized Intellectual Property where fans can contribute proposals to shape the development of their universe
About Genius X
Genius X fosters innovation by empowering Web3 startups to build impactful and scalable blockchain-based companies that will have a massive global impact. We accelerate and scale incredible Web3 projects through our advisory, mentorship, and growth experiences.
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© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.