Hello, Coinecta family! As the Coinecta FISO has already been announced, we will go through more details about it in this post, including the approved stake pools and reward structure. In our previous FISO article, we asked for the community to provide some feedback about the structure we had planned. Based on that feedback, we have made some adjustments to how the FISO will be organized. Read on to see how rewards will be calculated, as you may be able to get a bit of a boost in rewards by paying close attention to the methodology.
FISO Start: 16th November, Epoch 449
Duration: 15 Epochs (75 days) 449 to 463 (ending January 30th)
Total tokens allocated: 1,600,000 CNCT Tokens
ISPO vs FISO, what’s the difference?
Before we go any further, it’s important to note the difference between an Initial Stake Pool Offering (ISPO) and a Fair Initial Stakepool Offering (FISO). An ISPO typically entails a project launching their own stakepool, or partnering with another operator, and offering their own token in exchange for some of the ADA normally earned by staking. This results in a fairly high margin cost which is offset by token bonuses. It tends to draw stake away from other existing pools, into the project’s own ISPO pool.
A FISO on the other hand does not charge any additional margin cost above what the approved stakepools already charge. It also seeks to keep stake in already operating Cardano stakepools, rather than drawing it away to a new ISPO pool. That means the CNCT tokens we’re giving away will be absolutely free, you don’t give up any of your earned ADA, and we are hoping to encourage decentralization by selecting a handful of smaller single stake pools to spread the stake around.
The Coinecta FISO will be hosted by 20 different small single stake pool operators, with 10 of them starting in the reserve pool category.
To be eligible for the Coinecta FISO, you must stake with one of the above-mentioned approved pools.
Please note: Reserve Stakepools are not included in the CNCT FISO yet! Each time one of the approved pools reaches 5M in live stake, we will upgrade one of the reserve pools to the active pools list.
FISO Dates and Duration
On November 16th the FISO will officially begin with Epoch 449.
Please note: It is necessary for you to start staking at the latest at the end of Epoch 448 with one of the listed pools above to be eligible for the rewards of the first Epoch. However, if you missed 448 that doesn’t mean you’re out of luck. Rewards are calculated fresh each epoch!
Stake between November 11th and 15th (Epoch 448) to be counted in Epoch 449
How long will the FISO last?
Duration: 15 Epochs (75 days) 449 to 463 (ending January 30th)
When is the deadline for delegators to begin accruing rewards as early as possible?
Before or during epoch 448.
FISO Rewards & Allocation
In total, 1,600,000 $CNCT tokens, 2% of the total supply, will be rewarded over 15 epochs.
Total allocation: 1,600,000 $CNCT, 2% of the total token supply.
Delegators are awarded a total of 1,600,000 CNCT tokens, a distribution of 106,666 CNCT per epoch.
How is the reward calculated and distributed?
The rewards for each stake pool will be allocated equally, regardless of how much delegation each pool has.
Simply put, that means staking to pools with smaller delegation will earn you more CNCT rewards.
In the beginning, when there are 10 approved pools, 10,666 CNCT tokens will be reserved per epoch for each pool. Whenever a new pool from the reserve list is upgraded, the amount of tokens per epoch for each pool will change, as the rewards then will be distributed among more stake pools than before.
The calculations are based on the following formula:
User’s stake / total stake in user’s chosen pool * (total tokens for FISO / number of epochs / active pools this epoch)
For instance someone with 10,000 ADA staked in a pool with 1M delegation will receive fewer CNCT tokens than a person staking 10,000 with a pool with only 300k delegation.
For these examples we will use some fixed numbers:
Active pools this epoch: 10
Total epochs this FISO: 15
Total tokens for the FISO: 1,600,000 CNCT tokens
We’ll split the equation in 2 parts. The second part doesn’t change, so let’s do that first.
1,600,000 CNCT tokens / 15 epochs / 10 active pools this epoch = 10666 CNCT tokens per pool per epoch
Person A stakes 10,000 ADA with a pool which has 5,200,000 live stake.
10,000 ADA / 5,200,000 ADA in the pool * 10,666 ADA per pool per epoch = 20.51 CNCT tokens earned per epoch
Person B stakes 10,000 ADA with a pool with 190,000 live stake.
10,000 ADA / 190,000 ADA in the pool * 10,666 ADA per pool per epoch = 561.36 CNCT tokens earned per epoch
So person A earns 0.0021 CNCT tokens per ADA staked per epoch, because they staked in a larger pool, and person B earns 0.056 CNCT tokens per ADA staked per epoch, because the pool they staked to was much smaller.
Note that each epoch, the amount of stake in each pool will change, and as we upgrade pools the number of pools will increase. Keep an eye on the pools as the FISO progresses, you may be able to increase your rewards by switching.
Why did we choose this method?
As previously stated, the CNCT FISO’s purpose is to encourage decentralization and support small stake pool operators. With this method, we believe we achieve that goal and will contribute to the creation of a more distributed and decentralized ecosystem.
How can I claim my CNCT rewards?
All FISO rewards can be claimed three weeks after the official DEX LP launch on the Coinecta website.
There is no need for those FISO participants to take any action until additional announcements are made; announcements for the FISO reward distribution process will be made before the cliff period ends.
How can I participate in the Coinecta FISO?
To join the Coinecta FISO, you must stake your ADA with one of the stake pools mentioned above in order to receive free $CNCT tokens as a bonus for your ADA rewards.
We’ve launched a FISO dashboard on our website, where you can connect your wallet and instantly stake in any CNCT FISO approved pool.
Here is a step-by-step guide:
- Visit https://coinecta.fi/projects/coinecta?tab=fiso
- Connect your CIP-30 ADA wallet with the dashboard
- Simply choose one of the pools in the approved pools section and click “Stake now”
- Sign the transaction
- Congratulations! You have now successfully staked your ADA.
You will now receive your standard ADA staking benefits along with a bonus of CNCT tokens for supporting single stake pool operators while also supporting decentralization.
Note: Ledger is not supported at this time. If you use Ledger, please stake to one of the pools manually. You will still be able to claim your rewards when they become available.
Can I delegate for less than 15 epochs?
Yes, even if you just delegate for 1 epoch out of the total 15 epochs, you will get the CNCT rewards for that epoch.
How can I track my CNCT rewards?
Keep track of your CNCT rewards by connecting your staking wallet to our FISO dashboard so that you can see your actual upcoming rewards. Note that this is an estimation only.
What is the minimum stake to get rewards?
There is no minimum delegation. Keep in mind, however, that the more ADA you stake with the approved stakepools, the more CNCT tokens you will receive at the end of the FISO.
Do I get less ADA rewards by staking with the CNCT FISO?
You are not sacrificing your ADA rewards in exchange for CNCT tokens.Instead, you will receive free CNCT rewards in addition to your standard ADA rewards.
What if my pool reaches the 5M delegation?
When a pool achieves 5M ADA in delegation, it is still eligible for the FISO. You are not required to take actions or change your staking pool. However, in order to distribute the stake across numerous pools, we are going to include another FISO stake pool from the reserve stakepool list.
In wrapping up, the Coinecta FISO represents our commitment to Cardano’s decentralization and the empowerment of small stake pool operators. Deciding for a Fair Initial Stake Pool Offering over a conventional ISPO aligns with our mission to support single pool operators.
Stay tuned. Thanks for reading. See you next time.