Announcement: DANA ISPO Bonus Rolling Snapshot Begins April 1st
Introduction
Today, we are delighted to announce the terms for eligibility in the DANA ISPO bonus that we are providing to users staked in an eligible ASPA (Ardana Stake Pool Alliance) stake pool between April 1st to the launch of the DANA ISPO in July. A bonus multiplier will be applied depending on how long a user stakes their ADA in an eligible stake pool during this timeframe.
Of course, if a user stakes after the DANA ISPO launches in July, they will receive DANA depending on how long they stake during the ISPO, how much ADA they stake, and the size of the eligible ASPA pool they stake with (smaller pools yielding more DANA). The exact metrics for the bonus multiplier as well as DANA reward calculations will be released in a follow-up article.
A bonus rolling snapshot will improve overall system efficiency by allowing ADA to flow more freely into our ASPA pools and ensuring that DANA rewards are distributed more evenly and fairly. The bonus multiplier is to reward early and attentive stakers.
How Does the Bonus Rolling Snapshot Work?
The amount of staked ADA in the eligible ASPA pools is subject to a specific bonus multiplier depending on how long the ADA was staked between April 1st to the launch of the DANA ISPO in July. Effectively, this means that anyone staked into one of the eligible ASPA pools prior to April 1st and who remains staked during the rolling snapshot will receive the maximum bonus multiplier due to their dedicated support of ASPA pools. But what does this mean for your ADA? Let’s look at the below scenarios.
Let’s say, for example, that the rolling snapshot lasts for 100 days and a person learned about the ISPO after 50 days have already passed since April 1st and they decide to stake their ADA for the DANA ISPO for the last 50 days. Their effective multiplier could be 1.5, whereas someone who had staked for all 100 days could have an effective multiplier of 2.0. The final bonus mutliplier along with how the amount of ADA influences DANA received will be detailed in follow up articles.
However, if you are a user who stakes on the launch of the DANA ISPO in July, then you will not receive a bonus multiplier. In this case, that user would receive a standardized amount of DANA tied to how long they stake during the duration of the ISPO. Another case would be if a user started to stake after 50% of the DANA ISPO has already elapsed. In this case, they would receive 50% of half of the DANA that someone staked on April 1st would have with a bonus multiplier of 1.0.
Lastly, if a user staked 1 ADA during the entire duration of the bonus rolling snapshot in an eligible ASPA pool and 1,000 ADA on the launch date of the ISPO, only the 1 ADA stake would receive the maximum bonus multiplier.
Implementing a rolling snapshot is a much better alternative compared to a hard cut-off. This structure allows those who are active and attentive community members to be indirectly rewarded for their commitment to Ardana and for new users to still participate. Furthermore, it doesn’t limit anyone from a DANA reward if they stake after the ISPO has already started after July.
Conclusion
We are looking forward to the launch of the DANA ISPO stake in July, with the bonus rolling snapshot taking place from April 1st up until the ISPO debut. We are confident that this model will effectively promote a fair distribution to all ASPA pools, continuing to decentralize the Cardano network.
Keep an eye out for more information soon!
About Ardana
Ardana is Cardano’s stablecoin hub, bringing the necessary DeFi primitives needed to bootstrap & maintain any economy to Cardano. Ardana offers an on-chain asset-backed stablecoin and a decentralized stable-asset DEX. The stablecoin is verifiably backed by an excess of on-chain collateral and will enable borrowers to take leverage on their ADA or other supported assets. The DEX is a highly capital efficient exchange enabling swaps with minimal slippage & fees while providing low-risk yield opportunities to liquidity providers.
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