Wow, June flew by, didn’t it? It’s been approximately one and a half months since we decided to delay the Initial Stake Pool Offering (ISO). Since then we have made significant strides not only in developing the protocol but also in mitigating the legal hurdles that come with an ISO launch.
As a result, SundaeSwap is pleased to announce that our ISO and DEX will launch simultaneously shortly after the Alonzo hard fork on the Cardano mainnet.
We’re proud of our SundaeSwap community for having invented the ISO, and delighted to see so many innovative projects benefiting from it. We're looking forward to being one of the first and largest Cardano projects to distribute rewards to members of our community. We will collect zero ADA rewards from the stakers—we know how valuable your rewards are, and we see distributing SUNDAE tokens to our early and most loyal supporters as the best use of the ISO for the long-term success of SundaeSwap.
Here are some of the details we can share today:
Rewards Structure and Length. We will distribute 1% of our total supply each epoch over a total of 5 epochs (i.e., over a total of 25 days).
Distribution Timeframe. As excited as we are to offer the ISO, we’re even more excited about the SundaeSwap DEX. To avoid forcing people to choose between staking in the ISO or participating in the DEX, we’ve opted to give the ISO a shorter duration to support the long term success of the DEX.
Stake Pools. One thing that hasn’t changed since the last update is that we are still planning to have independent SPOs run our pools. This helps us achieve our goal of not taking any rewards, including the 340 ADA granted to SPOs. Multiple pools will be spun up in order to distribute the rewards fairly among all delegators.
“Whale Control.” Our goal is to make the SundaeSwap ISO as fair and democratic as possible, and this means we will be exploring equitable distribution models to ensure that smaller participants can still enjoy all the benefits of ISO involvement. To achieve this, we intend to implement diminishing rewards in order to mitigate the chances of a whale claiming most of the rewards. With this approach, each additional ADA will earn you fewer SUNDAE in order to benefit smaller ADA holders. We also are reviewing several other methods for whale control which we will continue to explore and may implement prior to the launch of the ISO.
Minimum ADA. While there is still the 10 ADA minimum required by the blockchain to stake to a pool, there is no minimum amount needed to collect your SUNDAE as all rewards will be distributed through a smart contract.
We know most of you have been patiently waiting for more ISO news, and we are excited to have found an optimal path that lets us keep our promise to our community and at the same time avoid any negative regulatory repercussions that could come from the scrutiny that both DEXs and ISOs might inevitably otherwise attract.
Our “greenpaper” describes the regulatory framework we believe DEXs will ultimately operate under, providing context for our decision not only to delay the ISO, but to hold off on an ISO until the DEX launch. We will be releasing it shortly on our website and will share an announcement on all our platforms when it is finished.
We very much appreciate and value your continued support, and look forward to sharing more updates with you as we get closer to launch.