Initial stake pool offering

What is initial stake pool offering ?

INTRODUCTION

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 an unique mechanism that allows the community to support their favourite 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

ISPO is a new way of token distribution that allows very small retail investors to get very early stage project tokens and for projects to raise funding.

REITCIRCLES ISPO

Title	Value
Total REiT token rewards	Max 1.8Billion (4% total supply)
ISPO rewards	Max 1.62 Billion
Bonus rewards	Max 0.18 Billion
ISPO start Date	Epoch 363, September 12, 2022
ISPO End Date	+48 epochs or till Total REIT token rewards distributed.
Reward airdrop	September 2023 (exact date announced later)

We have decided to reduce the total supply of tokens drastically to 50M. This has been done after due deliberation of different projects and keeping in view the balance of demand/supply. We will also do Smart contract driven token issuance with halving every 4 years. This is inline with what BTC does and also ensures that the increased supply over time is balanced out by increased utility of the platform, thus leading to value preservation.

The overall token distribution ratio has not changed and hence all ISPO participants will get allocations on pro-rate basis, based on scaling factor of 50M/45B(earlier total supply).

STAKE POOL FOR ISPO

Following is the stake Pool for the ISPO.

SYMBOL	POOL ID
REIT	60689cb29ae0cc55566434a809305885fdacd7d8aff0730f9778dbf6

Reward Calculation

In this section we try to answer the question, about how the delegation based reward is calculated.

For the base rewards we follow a simple calculation to translate delegated amount in ADA to REIT tokens.

1 ADA Staked=0.19 REIT rewards per epoch ​ for a 100% saturated pool.

=> For every ADA staked 0.19 REIT will be rewarded per epoch in a 100% REIT pool.

In addition to the above base rewards, we have a bonus rewards that gives incentive for time and amount staked.

Rewards dynamics

Initial simulation of the amount staked versus base rewards points to 4 pools but we will initially start with 2 pools and adjust based on demand of the ISPO. Initial numbers show that because of the large supply of the tokens, there will be REIT tokens remaining.

Our plan is to move the remaining tokens to the staking quota, such that supporters of the project can get staking returns after the ISPO is over.

Benefits

For delegators

Following are the benefits for the delegators.

1. Leverage the staking mechanism to exchange ADA rewards for REIT tokens.

2. Get early access to the project Reitcircles in a fair and unbiased way.

3. Automatically accrue REIT tokens and not have uncertainty as was common for ICO.

4. Not needing to invest your own ADA in order to acquire the tokens.

5. Get extra rewards bonus tokens, in addition to the staking rewards, by staking for longer period (details in next page).

For Reitcircles

1. Get project funding in order to complete the initial phase of the platform.

2. Enable a fair distribution of tokens in an absolutely transparent way, which is otherwise impossible to do via private/public sales.

3. Promote participation of small retail investors.

4. Engage with community and let larger number of members participate in this venture.

Reward Distribution

The rewards will be airdropped to the wallets around September 18, 2023.