Cardano Stablecoin Hub Ardana’s unique Initial Deposit Offering finally officially kicked off this week, giving Ardana Staking Fund Alliance supporters a good chance to earn a strong bonus multiplier on their earnings rewards.
You may already be familiar with Ardana’s ASPA stake pools, which are responsible for processing transactions on the Cardano network, helping it maintain long-term viability and security. Stake Pools provide a way for the Cardano community to participate in running the network while earning rewards without needing to host a node.
With Ardana staking pools, users can delegate their ADA to a specific project and receive that project’s tokens as a reward. This is different from a traditional ICO, where investors essentially buy the project’s native tokens in advance. Instead of spending their ADA tokens, they stake them and earn rewards – while keeping their original tokens. In this way, the only risk for investors is that they may lose their reward. They will get the ADA back after the staking period expires. At the same time, they still have early access to the native tokens of the projects they participate in.
However, Ardana has previously said that it is becoming worried by the consolidation of ADA stake in a limited number of stake operators running multiple pools. This can lead to the network becoming less decentralized, which is taboo for any blockchain of value. As a result, Ardana launched ISPO to offer more incentives to smaller stake pools.
The idea with ISPO is to reward long-term supporters of ASPA stake pools with a bonus multiplier – meaning the longer they stake ADA, the more rewards they get.
Ardana’s ISPO runs from July 4 to January 5 of the following year and runs for a number of “epochs”, with rewards available after each epoch ends. DANA tokens will be distributed at the end of each epoch through Drip Dropz.
The good news for those who bet on ISPO before March 31 is that they will benefit from an “early bonus staking multiplier” that promises to significantly increase their rewards, Ardana said. They will earn a share of 2.5 million DANA as a reward, with a maximum cap of 69,444 DANA per epoch.
The bonus multiplier starts at x1 (meaning no multiplier for the first epoch) and increases by 0.05x with each passing epoch, until a maximum of 2x is reached. So delegates will enjoy exponentially increasing rewards for each epoch.
Ardana spelled it out in a blog post:
“One participant decided to authorize on April 29 and remain authorized until ISPO starts on July 4. After that, they will earn 14 period x 0.05x = 0.70x multiplier. bonus. When ISPO starts, they will earn DANA tokens with a generous multiplier of 1.70x. Remember, pre-authorization before March 31 will grant participants a double bonus multiplier. “
Ardana explains that participants must pre-authorize each new “snapshot date,” which marks the beginning of a new era, to take advantage of the multiplier effect. Those who quit at any time will reset their bonus multiplier back to x1.
There will also be a “standard bet multiplier” to mark the official launch date of Ardana ISPO. This number will increase 0.01 times from July 4 and last until the final era of the year on December 31.
Finally, Ardana says it is applying a “small-group factor” to each Stake with less than 5 million ADS, as part of its push to decentralize. This is a one-time 0.1x multiplier that applies to any new delegate placing a bet in one of the smaller pools, although there is a requirement that the delegate remains in that pool for now. As all the Stake Pools in the ASPA grow to more than 5 million ADA, Ardana said they will raise this to 10 million and offer a new multiplier for each pool that is still well below that number. In this way, it will continue to provide incentives to place stakes in lower-volume pools.