Minswap fair launch tokenomics and FISO airdrop start date

Minswap Team
Aug 7 · 4 min read

UPDATE 1: The 10 active stake pool partners that you can delegate to are listed here.

The Minswap team has been hard at work onboarding partners and ensuring our back-end systems are capable of executing the intricacies of our FISO model. While it hasn’t been easy, we feel that attempting to improve and innovate on the ISO concept is a worthwhile endeavor. The feedback, patience, and support of the community have been invaluable and appreciated.

As we release our tokenomics ahead of the FISO launch we think it’s important to address a few points and be as forthright as possible. When we first proposed a 10/90 token distribution we naively pulled from Sushi and Pancake without giving it too much thought. At that point, we were laser-focused on mastering Plutus and engineering contracts. However, we soon realized those projects were built in more mature ecosystems, with outside resources, and a lot of forked code. We underestimated the amount of work necessary to build a secure, well-functioning product in a new, untested ecosystem with rapidly changing technical specifications. For this reason, we’ve decided to allocate 10% to the core team, with a stricter vesting schedule than the 10% dev fund allocation. This will allow us to keep building and innovating well into the future without having to raise private investment. We remain fair-launch and have never taken money from angel investors or VC funds. Minswap will always be a community-oriented project that values decentralization and enabling users to capture the value they create.

This means that the total allocation to us — the team, is 21.5% and for you — the community is 78.5%.

125 million tokens total will be rewarded to the participants of Minswap’s FISO. Delegator rewards will consist of 80% MINt tokens and 20% MIN tokens. MINt tokens can be converted to MIN tokens by providing liquidity to the MIN/ADA pool. MINt can be used in place of MIN to provide liquidity for this pair only. This will mint a MINx/ADA LP token that locks for 45 days. MINx rather than MIN indicates a reward multiplier applied on top of the regular MIN/ADA LP staking rewards. After 45 days these can be redeemed for the underlying ADA and regular MIN tokens. The MIN tokens redeemed will be released on a linear 45-day vesting schedule. All MINt tokens must be converted to MIN tokens within 82 epochs of Minswap’s launch. This gives users 1 year to lock-up their MINt tokens in a MIN/ADA pair to convert them to MIN.

The number of tokens an individual receives is calculated by a scoring system that approximates, every epoch, the percentage of total FISO delegation that their ADA equals.

Each epoch of the FISO 6.25 million tokens are rewarded to delegators (6.25 million = 5 billion * 2.5% / 20). The reason the scoring system is only an “approximation” of each participants percentage of total delegation per epoch is due to two mechanisms:

1. Whale Limiter.

2. Smallest Pool Reward.

Scoring System (used to calculate participant’s % of FISO rewards each epoch):

Under 100,000 ADA delegated: Total points = Total ADA

Over 100,000 ADA delegated: Total points = 100,000 + (Total ADA - 100,000) ^ 0.9

1.25X point multiplier for delegating to the smallest pool at the time of delegation. This multiplier will activate after 10 epochs and apply to all future epochs as long as the delegator stays in the same pool.

Example:

100K ADA = 100K Points

1M ADA ~ 328K Points

10M ADA ~ 2M Points

Each delegator’s points are totaled up at the end of every epoch and divided by the total number of points awarded that epoch. This is the percentage of the 6.25 million tokens a delegator receives for the epoch. All full epochs that a delegator stakes for will count towards their cumulative total. Therefore, if a user decides to unstake from a FISO pool it would be best to do so right after an epoch ends. All rewards can be claimed and withdrawn to wallets immediately after the FISO ends. To be clear, all tokens a participant earns over the course of the FISO will be split into 80% MINt and 20% MIN tokens before being airdropped to a user’s wallet. The FISO will start on August 18th at 9:45 PM UTC, the beginning of epoch 285.

We feel this is fair given that delegators are still earning full ADA rewards. Supporting small stake pools, further decentralizing the Cardano network, and contributing to innovation in proof-of-stake systems are all additional benefits of participation. We look forward to your participation and are happy to address any questions or concerns the community may have.

Minswap

Decentralized trading protocol on Cardano.