Cosmos StakeDrop Begins October 26th! $50,000 Worth of XPRT will be Allocated to ATOM Stakers!

Oct 20, 2020 · 7 min read
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Last week, we announced that we will be launching our first StakeDrop campaign on the Cosmos Network. This will begin at 12:00 am PDT on October 26th. A total of 200,000 of Persistence’s native XPRT tokens (worth $50,000 at the most recent valuation), will be allocated to ATOM stakers during the campaign.

Every ATOM staker will be eligible to earn up to 5,000 XPRT tokens, simply by staking on the Cosmos Network!

To provide more insights into the Cosmos Network StakeDrop and to ensure that ATOM holders are ready to participate, we’ve put together a brief FAQ below.

First Things First: What is Persistence and XPRT Token?

Persistence is a protocol powering institutional open finance by facilitating the borrowing of cryptoassets (stablecoins) using real-world assets, such as invoices, as collateral. This bridges DeFi and traditional finance and uses the features of DeFi to solve real-world financing problems.

The flagship dApp in the Persistence ecosystem is Comdex, an institutional-facing commodities trading and trade financing platform, which has already handled over $41M in transaction volume since its launch.

XPRT will carry a variety of use cases within the Persistence ecosystem, including participating in staking to contribute to network security, and community governance of the Persistence mainchain. As a ‘work’ token, XPRT will also accrue value in direct correlation to increased financial activity within Persistence’s ecosystem dApps.

Remind Me, What is StakeDrop?

If you haven’t yet read our in-depth explanation of StakeDrop, you can do so here:

Essentially, StakeDrop is a token distribution mechanism designed to allow token holders of prominent PoS blockchains to receive an allocation of XPRT tokens simply by staking on their favourite network/s.

StakeDrop has been meticulously designed to be much more than a conventional airdrop; it’s an experience that benefits all parties involved.

Our first StakeDrop campaign will be with Cosmos Network. For us, that was the natural choice.

Why Choose Cosmos as a StakeDrop Network Partner?

Cosmos and Persistence share strong synergies. We’re like two peas in a pod.

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As interoperable Tendermint-based blockchains, Persistence and Cosmos both understand the value of collaboration for fueling innovation. We are therefore proud to be a part of the Cosmos ecosystem and we work closely with Cosmos to accelerate the interoperability movement in India and beyond.

For example, Persistence is a key player in Cosmos India, which aims to provide the tools and opportunities for India’s rapidly growing blockchain developer community to begin building interoperable solutions using the Cosmos SDK. Together we have grown the Cosmos India community from a handful of individuals to over 1,000 members in just 9 months.

We also recently joined forces to launch the HackAtom India hackathon, further fueling innovation on Cosmos:

We also work very closely with the Interchain Foundation (ICF), which is the governing body of Cosmos Network. The ICF awarded Persistence a grant to develop interchain standards for NFTs and metadata. These standards will be widely used in the interoperable blockchain world.

StakeDrop not only benefits Persistence by introducing the wider crypto community to the project and XPRT token, but it also provides a range of benefits for our partner networks and their communities. Cosmos Network and the ATOM holder community were thus at the forefront of our mind when deciding partner networks for StakeDrop.

As an ATOM Holder, Why Should I Participate in StakeDrop?

StakeDrop provides a mechanism for ATOM holders to receive an allocation of XPRT in an almost risk-free manner whilst retaining their ATOM holdings. What could be better?

  • There’s no need to give up your precious ATOM to receive an allocation of XPRT! Conventionally, if a token holder wanted to secure an allocation of a different token, they would often have to liquidate some of their current holdings to raise the capital to do so. With StakeDrop, ATOM holders can stake their ATOM to receive XPRT token while retaining their original ATOM holdings.
  • (Near) zero principal risks. The StakeDrop is one of a few ways people can get exposure to a promising project like Persistence without any principal risk. The only risk delegators undertake is that of the delegators’ validator nodes getting slashed for downtime, or double signing (this is a risk of the staking mechanism in general).
  • It’s non-custodial in nature. Delegators retain custody of staked assets at all times (unlike the Edgeware Lockdrop where assets were locked up in a smart contract).

How will this Benefit Cosmos Network?

By providing a way for ATOM holders to gain access to XPRT tokens via staking on Cosmos, StakeDrop engages ATOM holders and incentivizes them to contribute to the security of the Cosmos network.

  • The ability for ATOM holders to earn XPRT tokens at near-zero principal risk incentivizes token holders to stake their ATOM on Cosmos, thus strengthening the security of the network (the higher the staking ratio, the higher the security).
  • Campaigns such as these reward long-term token holders and stakers of ATOM tokens by giving them exposure to new projects like Persistence without any complications. This is an additional incentive, along with staking rewards, for being a staker on and supporter of Cosmos.

How Much Could I Earn?

Every ATOM staker will be eligible to earn up to 5,000 XPRT tokens. Reward amounts for specific participants of the Cosmos Network StakeDrop will depend on a variety of factors, including the length of their participation in each campaign, the total number of ATOM tokens being staked by all StakeDrop participants at any one time, and whether they are delegating to an validator (higher rewards) or a different validator.

The duration of the Cosmos Network StakeDrop is 30 days. The daily dropped number of XPRT tokens increases linearly until day 21, and then remains constant until the final day of the campaign.

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Fig: Graph of XPRT dropped per day for the Cosmos Network Campaign.

These daily dropped XPRT are allocated to ATOM stakers based on the weightage of their stage.

Another factor is whether each participant is delegating to the validator node or any other validator.

There are two rewards pools per campaign. All participants are rewarded through the Network Rewards Pool. There’s a separate Rewards Pool which incentivizes delegation to our validator. As a result, delegators to receive their share of rewards from the Network Rewards Pool as well as the Rewards Pool.

Therefore, the total rewards for delegators = rewards from the Network Rewards Pool + rewards from the Rewards Pool.

Delegators to all other validators will only receive the base rewards from the Network Rewards Pool, and not the additional bonus from the Rewards Pool.

You can find more details, including formulas, in our detailed documentation here.

I’m in! How do I Participate?

The participation process is simple. Firstly, you need to be staking ATOM on-chain with any validator on Cosmos Network (staking via exchanges does not count).

Then, you need to register your participation by sending a ‘Magic Transaction’ (see the details in the tutorial linked below) to a specified address, which we will provide via the StakeDrop page of the Persistence website on October 25th, 24 hours before the Cosmos StakeDrop commences.

Once this Magic Transaction has been successfully sent, you’re all set! You will begin receiving an allocation of XPRT once the StakeDrop begins.

For a full run-down of how to participate in our Cosmos Network StakeDrop, see our dedicated tutorial here:

Remember to mark your calendar for October 26th, the start of the Cosmos Network StakeDrop. Get your ATOMs staked in advance so you’re ready!

About Persistence One

Persistence is a protocol powering institutional open finance by facilitating the borrowing of cryptoassets (stablecoins) using real-world assets, such as invoices, as collateral. This bridges DeFi and traditional finance and uses the features of DeFi to solve real-world financing problems.

About Cosmos Network

Cosmos is an ecosystem of sovereign, interoperable blockchains. Some of the key components of the Cosmos ecosystem are Tendermint, Cosmos-SDK, and IBC. Cosmos provides a highly modular framework that allows blockchain developers to easily develop application-specific blockchains that solve scalability, usability, and interoperability.

We are always on the lookout for connecting with individuals or organizations who wish to take advantage of the opportunities present in the blockchain space and want to learn more about Persistence. If you wish to get in touch, please do not hesitate to reach out to us.

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Persistence Blog

Protocol Powering Institutional Decentralised Finance

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