Top 5 Cardano ISPOs for April 2022

Top 5 Cardano ISPOs for April 2022

Cardano is making lots of moves. As we outlined in a recent video, they are taking advantage of a new funding technique for new projects on their protocol. The name is ISPO. Well, we will get into that because ADA has so many dedicated stakers on its platform.

Most importantly, if you are already HODLing ADA and you believe in the ecosystem, then it’s one of the best ways to help new projects grow. And it’s low risk for you too. Want to learn more? Then let’s take a look at Cardano ISPOs.

What is an ISPO?

ISPO stands for Initial Stake Pool Offering. We talked about it extensively in our previous video. It’s specifically designed to help new projects in the ADA ecosystem. How? Well an ISPO does the following:

  1. Uses some of your staking rewards to fund the project
  2. Promotes decentralization by giving smaller validators a chance to take part with fair incentives.
  3. Staking more ADA across more validators increases the security and performance of the network

You are trading away some of your staking reward for the project to use it for fundraising. And not just that, it’s non-custodial too. That means that the ADA that you put into the stake stays in your wallet and under your control. Only the rewards move to the project for their funding.

It’s a pretty smart strategy too if you already like Cardano. So now that we have a better idea of what it is, let’s look at 5 projects on Cardano taking advantage of it.

Project #1: OccamX

OccamX is a DEX on Cardano where you can swap or stake easily. Their native coin is OCX. Occam will run on a Cardano EVM on a sidechain for both speed and compatibility. The chain is Milkomeda C1. Their ISPO is different from most. How so?

This one has a 1-year timeframe. It started in September 2021 and goes through until September 2022. When the distribution period starts in early September, there will be a 12-month vesting schedule so no one can dump their coins into the market right away.

Top 5 Cardano ISPOs for April 2022

Source: OccamX

This seems to be working for OccamX though. They are already 53% staked towards their goal with over 8,500 different investors choosing to delegate some of their rewards to Occam. It’s 18.5 million ADA already. The delegators (investors) will receive 10 million OCX. Investors are already claiming 5.2 million of the 10. A total of 10% of the total supply is available in the ISPO.

OccamX Tokenomics

OccamX’s pitch deck and white paper don’t mention a maximum supply of OCX, but they do mention a burn program of protocol revenue that cuts in half quarterly starting from:

  • 50% in Q1
  • 25% in Q2
  • 12.5% in Q3
  • And 6.25% in Q4 and beyond (for now)

There’s a detailed description of the vesting schedules that include 6 months for the ISPO and the Public Sale. The other groups have vesting schedules of 3 or 5 years. Moreover, you can only buy directly from EMP as part of the ISPO for now as the Public Sale is over. The TGE just took place in March and the only public place to buy is the ISPO.

Project #3: Flickto

Flickto calls itself a community media incubator. Or decentralized media. Creators and voters can earn ADA and native $FLICK tokens for their creations and for voting for the best projects on the platform.

Top 5 Cardano ISPOs for April 2022

Source: Flickto

Then, those best projects get funding from the platform to grow their media business. Completely community-led. You’re eligible for NFT airdrops too. The ISPO is going on now. Also, like Empowa, all your staking rewards are going to Flickto. Here you get FLICK at a rate of 0.33 per ADA per epoch.

Moreover, they have a minimum investment of 100 ADA and they offer bonuses too if you hold on for 20 or more epochs. At least, 40% of FLICK’s supply is available as part of this ISPO. These higher bonus rates are available for a couple more weeks until mid-April, then the reward bonuses decrease.

Flickto tracks these things on a nice dashboard where you can see your reward progress.

Flickto Tokenomics

60% of the total supply of 5 billion is available for public sale. 15% is for the Treasury, while another 15% and 10% are for Partners/Investors/the Team and Marketing & Operations, respectively.

The white paper says a full 52% of the 60% for the public is available in this ISPO. These last 2 groups have 10-month vesting schedules and the Marketing and Operations part has a 3-month lockup. Better than none, less than most protocols offer.

Project #5: Astarter

Astarter is both a DEX and an IDO launchpad. Their goal is to be the full-service DeFi hub for Cardano. They are just concluding the Beta demo of their app now. They are doing something interesting. Astarter is consulting their (the Cardano) community about how to set up their ISPO. Because it’s not ready yet.

Top 5 Cardano ISPOs for April 2022

Source: astarter

Emurgo, who is the team behind the native Yoroi wallet, is the team behind Astarter too. This gives the project a credibility boost. Take this tweet and poll where they asked ADA stakers what they think of ISPOs and if Astarter should do one. You can see that 86% were in favor and said Yes they should do one.

And Astarter is listening to comments in the thread about important parts of the ISPO like:

  • Support for single pool operators (this promotes decentralization in the network)
  • A benefit to people like Americans who thanks to KYC requirements often can’t get into a conventional IDO launch
  • Or how to delegate tokens between the pools

#Astarter Closed Beta Version Test

⚡️WE’RE LIVE NOW🍻We’ve sent out all 50 invitations to the qualified testers😋Each tester will be rewarded 150 $AA after submitting the test report

😆Go test our exciting #Launchpad functionality😇Public Beta will be SOON#EMURGO #Cardano pic.twitter.com/6eZIuE1y9B

— Astarter (@Astarter_Pad) March 18, 2022

Moreover, Astarter is considering these and even more elements on how to set up their ISPO. We will be back with more details on it when they become available.

Also, Cardano is really smart to incorporate staking into fundraising in this way. Look at how much ADA is in staked pools there already. And these pools offer different opportunities like a fixed 6 month period or an unending ISPO. Or working with a DEX, Content Creation platform, or real estate finance. There are lots of options here.

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