ISPO
Q: What is an Initial Stake Pool Offering (ISPO)?
A: An ISPO is a new fundraising mechanism that allows delegators of a POS (Proof-of-Stake) network to divert staking rewards towards a project of their choice and get project tokens in return. It is a unique mechanism that allows the community to support their favorite project without investing their own assets but instead leveraging the network’s native reward incentive structure. ISPOs are only possible on the Cardano blockchain because of its unique stake pool delegation structure here.
Q: Why ISPO on Lumino?
A:
1.)Stake to earn, the Lumino ISPO participants will be the first ones to get $LMN tokens for the public.
2.)Appeal to more people who hold ADA to join Lumino pool, and build a strong community to share our value and passion to the DeFi area.
3.)Priority to the Lumino ISPO participants accessing Merge Staking and AWLS NFT
Q: How to Participate in the Lumino ISPO?
A: There are 3 steps to participating in the Lumino ISPO:
Owning or buying ADA
If you don't already own ADA, the easiest way to buy some is through a centralized exchange. Setting up a Cardano Wallet. Such as Binance or Coinbase.
Holding your ADA in a Cardano wallet
Once you have ADA, you will then need to hold it in a Cardano wallet before you can delegate it. If you don't already have a Cardano wallet then you will need to set one up. See the guidance on “How to get a Cardano native wallet?”
Delegating your ADA to Lumino stake pools
Once you have your wallet set up, transfer your ADA to it and you should then be ready to delegate.
Q: Can I withdraw or spend coins while staking?
A: ADA coins are delegated, not transferred. You retain full control and use of your coins. So, yes you can withdraw or transact with them at any time.
Q: When do I receive staking rewards?
A: Rewards are distributed every 5 days after a few epochs delay. Rewards depend on pool performance and the amount staked.
Q: What is an epoch in Cardano?
A: An epoch is a unit of time in the Cardano blockchain. Each epoch lasts 5 days, or 432,000 seconds. Epochs allow rewards to be calculated and distributed on a regular schedule.
Q: What happens at the end of each epoch?
A: At the end of each epoch, a snapshot is taken of all the ADA balances in staking wallets. This snapshot is used to calculate rewards for the next epoch.
Q: How many slots are there in each epoch?
A: There are 432,000 slots in each epoch. Slots are opportunities for blocks to be created by stake pools. Not every slot results in a new block being created.
Q: When do rewards get distributed?
A: Rewards are calculated in one epoch based on the previous epoch's snapshots and performance. The actual distribution of rewards occurs at the end of the next epoch.
Q: How long after delegating ADA will I receive my first rewards?
A: You need to wait approx 3 epochs (15-20 days) before receiving your first rewards. This accounts for the time to register your stake, use your stake, calculate rewards, and distribute rewards.
Q: Do rewards get distributed every epoch after the initial delay?
A: Yes, once your first rewards are distributed, you will receive rewards at the end of each epoch as long as you continue staking your ADA.
Q: How does pool size affect rewards?
A: Larger pools have a higher chance of being selected to create blocks and earn rewards each epoch. Smaller pools may not get selected as consistently, leading to variance in rewards.
Q: Do larger pools give higher rewards?
A: No, average rewards are the same across pools of all sizes. Larger pools simply earn rewards more consistently without variance.
Q: How much can I expect to earn from staking rewards?
A: The protocol targets about 4-5% annual rewards on staked ADA. Actual rewards depend on pool performance and the amount staked.
Q: Can small pools be profitable?
A: Yes, small pools can still be profitable but rewards may fluctuate more. Pool operators need to wait longer to see average rewards stabilize.
Q: What happens if I choose an oversaturated pool?
A: You will earn diminishing rewards. It is better to choose an unsaturated pool for the highest consistent rewards.
Q: Should I split my ADA between multiple pools?
A: You can, but there is no difference in rewards. Choosing one good unsaturated pool is fine. Spreading stakes too thin can impact consistency.
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