In this blog, we gathered all the relevant information about the ongoing ENCOINS Initial Stake Pool Offering (ISPO).
ISPO is a novel method to distribute a protocol's utility tokens to the community using the Cardano blockchain. It ensures a high degree of decentralization of the token ownership and simultaneously supports the project's development.
To learn more about ENCS tokens, please check out our whitepaper.
There will be a total of 15 000 000 ENCS. During the ISPO, 10 000 000 ENCS tokens will be assigned to the participants. To participate in the token distribution, users delegate their ADA to our stake pool [CMIX]. At the time of writing, 6 148 193 ENCS has already been assigned, meaning that there are still 3 851 807 ENCS up for grabs.
Important: Actual token minting and distribution will happen after all ISPO tokens are assigned (current estimate: February 2023).
Our pool ID: pool1pmeetaqhlsdc5yj8snp8j46hprs9mzghxcl63vch95trz3xwpln
In hexadecimal format: 0ef395f417fc1b8a124784c279575708e05d8917363fa8b3172d1631
To participate in the token distribution, users delegate their ADA to our stake pool [CMIX]. The ENCS rewards are calculated for every epoch individually, so users may decide to participate for any number of epochs.
How to delegate: Enter CMIX in the pool search textbox inside your wallet app to find our stake pool. To be sure you are delegating to the right pool, check the pool ID.
Our pool has a 99% variable fee, which supports the ongoing development of the protocol.
How to check rewards: To see the accumulated ENCS rewards, participants can enter their stake key in the calculator here.
ISPO distribution basics
Each epoch, we distribute between 120 000 ENCS and 600 000 ENCS depending on pool saturation. The exact airdrop formula is given below. In reality, our saturation stayed below 20%, meaning that 120 000 ENCS were assigned during an epoch so far. Participants of the CardMix public test in May receive a 20% boost on their total rewards.
From the amount of ENCS allocated for the epoch, 90% is distributed proportionally to the delegated ADA. The remaining 10% is distributed through the lottery.
Important: Only delegators with at least 1000 ADA participate in the lottery.
The lottery leverages the Cardano Blockchain itself to ensure the honesty and transparency of the winners' selection process (see below).
The Airdrop Formula
We use the following formula to calculate the ENCS airdrop amount (the CardMix PT boost excluded):
A(d) is the amount of ENCS tokens to be received by the user in one epoch;
N = 600 000 is the maximal amount of ENCS tokens allocated for each epoch;
d is the amount of ADA delegated by the user;
D is the total amount of ADA delegated;
L=0.1 is the part of tokens that goes to the lottery (10% of the tokens);
P is the pool saturation level (a number between 0 and 1);
Pmin=0.2 guarantees a minimal level of rewards regardless of saturation.
The lottery prize pool is
To participate in the lottery, delegate at least 1000 ADA. Every participant has an equal chance to win, and the lottery prize pool is distributed evenly between the winners. The number of winners depends on the saturation: 3 winners when 0 < P < 0.2, 4 winners when 0.2 ≤ P < 0.4, 5 winners when 0.4 ≤ P < 0.6, 6 winners when 0.6 ≤ P < 0.8, and 7 winners otherwise. In practice, we have had three winners per epoch (each got a 4000 ENCS prize).
In this section, we describe our lottery winners' selection process.
- Every epoch, the stake addresses participating in the lottery are published on our website at the following address: https://encoins.io/ispo/<epoch_number>.txt. For example, the participants of the Epoch 366 lottery can be found here: https://encoins.io/ispo/366.txt. You can also find this information on the CardMix website at: https://cardmix.io/lottery/<epoch number>.txt.
- Every epoch, we have 3 to 7 winners depending on the saturation. To determine M winning numbers for Epoch N, we use block ids of the first M blocks of Epoch N+1. For example, for Epoch 366, we will have three winners. The winning numbers on the list of participants will be determined by the first three blocks of Epoch 367, which will start in about four days. The block ids may be found using blockchain explorers:
- Each block id is treated as a hexadecimal number. To find the corresponding winner, we take this number modulo the number of participants and add 1. For example, the Epoch 365 lottery had 458 participants. The first block of Epoch 366 had an id 32010e7cd2d0dcfb73366d4d795f890655b3d151f91564c87c89510d5cc9ec5f. Therefore, the 1st winner of the Epoch 365 lottery is stake1u8a33l0prwny2l7q44xyd20d974vuay4hregx0dsh2yg2zc7gdc93 (number 256 on the list).
The winners for the latest epoch will be displayed on our website. Their bonus tokens will be taken into account in the rewards calculator. You can check the past winners on our Discord.
In the next blog, we will update you on the current development progress. Stay tuned!