Since the inception of cryptocurrency, there have been various ideas implemented to raise funds for crypto-startups with the most popular being Initial Coin Offerings, Initial Exchange Offerings, and Initial Dex Offerings.
The first ICO was conceived in 2012 by J.R. Willett when he published his White Paper ‘The Second Bitcoin White Paper’. It wasn’t until 2013 through a Kickstarter-esque model that he launched Mastercoin (now called Omni) and raised USD$500,000 worth of Bitcoin. This kickstarted the crypto-hype and led to a flurry of ICOs over the following years.
In 2015, Ethereum really broke out and raised USD$18 million through a crowd sale. This prompted other startups to use the ICO model to raise funds. In 2016 alone, ICOs raised USD$225 million and in 2017 that number jumped to a whopping USD$3.5 billion. In the first two weeks of 2018 alone, ICOs have raised USD$700 million!
Then, in 2019, Initial Exchange Offering (IEO) came into the picture. In an IEO, a token offering is hosted and administered by a crypto exchange platform (they can also provide marketing support, post-listing of new tokens, etc.).
The year 2020 marked a milestone in fundraising methods in the crypto industry, associated with the explosion of DEXs, in particular AMM, based on which so-called ‘Initial DEX Offering’ (IDO) appeared. An IDO can be launched on DEXs with liquidity pools.
MELD is making 2021 known as the year of ISPO’s
What is an ISPO?
An Initial Stake Pool Offering (ISPO) is a liberating new way for investors and the community to support MELD using the Cardano blockchain. Users who wish to participate in our ISPO can delegate their ADA using the Yoroi or Daedalus wallet to the public MELD stake pool (ticker MELD) for any period which they choose. Depending on the duration and quantity of ADA staked, delegators will be rewarded MELD tokens.
What makes the MELD ISPO better than ICOs, IEOs, IDOs?
There has been much debate on how to best achieve a decentralized network and the most optimal way to provide a fair token launch to our users and the ISPO was the result.
There are 2 main factors that separate the MELD ISPO from the other types of offerings:
- How funds are generated
- ISPO’s keep ZERO of the funds delegated
The revenue from MELD performing the ISPO is generated by keeping the ADA rewards that are allocated to delegators of the MELD ISPO. The crypto company will keep the ADA rewards (distributed every EPOCH — 5 days) and in return distribute the MELD token as a reward.
This functionality is a total game-changer when it comes to token launches and how funds are raised. Users no longer have to deposit funds directly to these new crypto companies, risking their deposited assets from being rugged, in order to participate in their token launch. Users keep full control of their assets and, what’s even better, they also keep their entire delegation!
No longer will users be forced to deposit their hard-earned value into some non-audited smart contract just to partake in a token launch from a new crypto-startup!
- Support crypto-startups by offering your interest in return for the token
- Keep your entire delegation & your private keys
- Join and leave anytime you like — The number of participated epochs are captured for token distribution
MELD ISPO Mathematics
The ROA (Return on ADA, annualized) for delegating ADA to a Cardano staking pool equates to roughly 5% APY
The MELD stake pools are keeping this 5% and in return are providing MELD as a reward at the end of the ISPO (November 2nd).
If 100 ADA is delegated to the ISPO stake pool on day 1 and leave it for the full ISPO period of 32 Epoch you will be rewarded 208 MELD.
Filled Cardano Stake Pool = 64m ADA
MELD tokens allocated to ISPs = 800 000 000
Expected ISPs Filled = 6
Total ADA in all MELD ISP’s = 6 * 64m = 384m ADA
800 000 000 / 384 000 000 = 2.08 MELD / ADA / 32 EPOCHs
We are keeping the ratio of 2.08 MELD / ADA / 32 EPOCHs regardless of how many ISPs we fill.
Stay Tuned — MELD
We think it’s essential for everyone to gain control of their financial lives and have equal access to financial instruments used by professionals, not just centralized institutions, governments, or the 1%. We want to provide financial freedom and control to the masses, including the unbanked.
We have a long-term goal to enable the $15 trillion that is currently locked out of the global economy, including 2 billion individuals worldwide that are either underbanked or have no access to banking services whatsoever, access to these tools. These are the people that are paying the highest fees, getting the worst customer service, and they are the ones that are having the most problems.
Our vision is to create an ecosystem that empowers individuals to regain financial control by providing them with the tools and services they need to manage their money on their terms. Whether that be creating a collateralized debt position (CDP) with cryptocurrency, earning an interest return for lending fiat to borrowers, or even participating in reward incentive programs, we strive to provide our users with the functions they need to manage their own financial lives.