Thread by @SoorajKSaju

There is a ridiculous project on #Cardano with a worthless token,

that is doing more for your network than you can even imagine.

Wondering how?

Here's a story on how a meme coin is decentralizing the networking layer #Cardano🧵👇

Yes, it's #Hosky

the infamous meme coin of #Cardano

I am sure you have heard the name #Hosky, but do you know anything more about it?

So, before we get into the details!

Let me tell you the story of #Hosky!

When the #Cardano L1 enabled the native tokens, way before it had smart contracts

There was a rush of 100s of different tokens

But one thing was missing

Yes, a low qualitys**t coin meme token

That's why #Hosky was launched

#Hosky occupied the meme coin space in the #Cardano ecosystem

This was the first project n the history of #blockchain that fulfilled its founding objectives on day one

The promise was to deliver the dogo memes, and that's exactly what it delivered

A perfect product market fit

#Hosky has a ridiculous initial supply

At its inception, a 1000 trillion #Hosky tokens were minted

And 50% of that was gifted to the "Big #Hosky."

Yes, Charles Hoskinson was gifted 50% of the initial supply

And this is what the allocation to the rest of the tokens looks like

A far fairer token allocation than its comrades like Doge and Shiba Inu

And recently, #Hosky has completed the biggest "NFT" sales in the history of #Cardano

@hoskytoken made history by selling 420,420 NFTs in 334 days

#Hosky has made one thing pretty clear

It has the largest and most engaged community in all of Cardano's ecosystem

https://twitter.com/hoskytoken/status/1588674321630654464

As we are done with the initial details, let's take a deeper look at what #Hosky is doing!

Beyond all the branding as a worthless meme coin

#Hosky's mission has always been to impact the strength of Cardano’s network positively

And that's where Rug pools started

So what is a Rug pool?

A Rug Pool is a Hosky brand association for a Single Pool Operator(SPO)

An SPO who contributes with meaningful value to Cardano

There is a selection process & it's fully at the discretion of the #Hosky team

Hosky charges no fees from SPOs or delegators

https://twitter.com/hoskytoken/status/1591202573297455104

So why should someone stake with a Rug pool?

staking rewards &other incentives are the main factors that influence delegation to a stake pool

So,

#Hosky is rewarding each wallet that is staked with a Rug pool with a bundle of HOSKY tokens as an additional incentive

Now you are thinking, #Hosky token is not worth that much

So how is this a meaningful incentive?

This is where the minimum fixed pools fees of #Cardano comes into play

which is currently at 340 ADA for each block produced

This fixed fee of #Cardano protocol eats up a huge part of staking rewards

The smaller the pool is bigger its influence on staking rewards for the delegators

This makes staking with a small SPO unattractive

But if you are staking with a rug pool, things are a bit different

At the current value of #Hosky

The delegators to the rug pools are earning better rewards in total value per epoch

than staking to a near fully saturated stake pools or multi-pool operations

And if you look at the incentives more keenly, things get even more interesting

With the rug pools,

User rewards are positively weighted by their ADA delegation size

and negatively weighted by the size of the pool’s total saturation

Meaning,

If you stake your ADA with a smaller pool

You get a better reward than staking with a bigger pool

This incentive model is mind-blowing

Because it incentivizes delegators to stake to a smaller pool to get better rewards

Things get even more interesting for delegators who pay attention to the cash-grab NFTs

Curious?

If a delegator's wallet holds a Cash Grab NFT

That has certain traits that match with that of the SPO that they are staking with

They get even better rewards

Currently

There is 157 million ADA delegated over 18 Rug Pools

And Over 50trillion #HOSKY rewards were claimed by the delegators

with an average stake distribution of 8,7 million ADA per pool

The smallest pool hosting a stake of 2.19 million ADA, producing blocks every epoch

This new movement is motivating other small SPOs to find their niche to add value to the #Cardano ecosystem

And to be a part of the rug pools

Because as the total stake grows, rug pools need to keep the balance by adding new SPOs to the group

But wait, this gets even better👇

#Hosky is now enabling mature projects on #Cardano

to participate in the Rug Pool reward system

Providing a convenient and curated way to incentivize the #CardanoCommunity

to maximize the decentralization of the networking layer of #Cardano

@cardanowarriors and @WolvesOfRomeTCG are two such projects

That will be participating in the Rug Pool reward system

powering the #Decentralization of #Cardano

What #Hosky has proven with this incentive mechanism is to demonstrate a strategy

That can work around the game-theoretical aspects of #Cardano's rewards mechanism

Which can be used as a force for good

to strengthen the networking layer of #Cardano

So what we have seen now is a project that started as a worthless meme coin

Building up the biggest & most engaging community in the #Cardano ecosystem

And curate a community-driven sSPO subsidy model

That aligns with the interests of #CardanoCommunity: i,e Decentralization

And Hosky wins again!!

https://twitter.com/rom1_pellerin/status/1594408235410202625?s=20&t=k2IdY6OaoaL0VM2KqKzoog

That's a wrap!

If you enjoyed this thread:

Follow me
@Soorajksaju2
for more educational content on #Cardano

Here's a thread about @WolvesOfRomeTCG

A card game that is innovating blockchain gaming🧵👇

https://twitter.com/Soorajksaju2/status/1594324627324604417?s=20&t=k2IdY6OaoaL0VM2KqKzoog