$2.16 0.65%
ADA · 4w

Maladex Launches Fair Distribution ISPO - Technical Write Up

As you might be aware, we are using an ISPO model to distribute our tokens. This Initial stake pool offering, meaning when you stake your ADA with our pool, you’ll receive both your expected ADA rewards as well as MAL tokens.

Check out the calculator here and formula breakdown here!

Why go with an ISPO

We think that the power of a DEX and its underlying network is in decentralisation. Cardano’s stake pools offer a fantastic opportunity for validators to be rewarded for A) building the community and B) remaining decentralised.

By running an ISPO, we can distribute our tokens initial supply in a fair and decentralised way while building the support of our incredible community. We have designed a deep modelling tool to help calculate rewards for each epoch. This formula considers all our values, including whale limiting, early adoption rewards and a commitment to a single pool.

How we calculate your rewards

When you see our formula in its entirety, it may seem intimidating, but we promise that it makes a lot of sense when you break it down.

First, we calculate the total amount staked, then use this to calculate the total amount of MAL tokens we will be distributing this epoch. We then multiply this amount by up to four to compensate for low delegations. This compensation ensures that if the pool doesn’t produce any blocks, you will still see value in our ISPO. (hopefully, this won’t be needed since we just crossed 14 millions in live stake!) We then take 5% off the top of each delegators reward and apply that to our lottery. More on this later. We then apply our whale limiter to make sure that we distribute our tokens fairly and maintain smooth price action in the future. We then normalise the total tokens into shares, and MAL rewards are calculated. After all this, we give the tokens we took out earlier to a single user who has won the lottery for this epoch.

You can check out the entire formula in all its glory here.

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