The world’s first Initial Stake Pool Offering (ISPO) crypto fundraising project has been launched by UkrainianPool; a not-for-profit crypto initiative with the intention of raising funds for war-torn Ukraine.
Participants don’t need to donate assets directly to the project in order to raise money for Ukraine. Instead, they ‘stake’ their funds which in turn generates rewards on the blockchain. These rewards are then transferred to a wallet owned by the Ukrainian government.
Participants temporarily allow their crypto assets to be frozen, which generates high-interest yields of five per cent. The more funds are staked in the pool, the more funds can be raised for Ukrainians in need.
UkrainianPool has stated that participants can unfreeze their assets at any time.
It is the first time an ISPO has been used in this way. UkrainianPool was created by Ugnius Šeškas and Karolis Gogaitis, principal partners of Beckton Group, Laura K. Inamedinova, founder and CEO of LKI Consulting, and Paulius Vaitkevičius, founder and CEO of VILP Solutions.
The project’s most notable backers include MELD, CRYPTO A.M. and ADA Finance.
UkrainianPool hopes that people from across the global crypto community will come together to join the ISPO to help it reach an initial target of $10million in funding for humanitarian efforts.
“We know that so many people want to help Ukraine but because of the difficulties of the past few years, they may not have the ability to donate much. The ISPO enables them to make a real difference – donations do not cost them anything and could potentially generate much more money than a direct transfer,” comments Inamedinova, initiative creator of the project.
“Our entire team and advisors have come together from across the world to freely donate their time and expertise to launch this project because we believe we can make a difference to the people in Ukraine.”
All contributors to UkrainianPool will be able to check what happens with funds via an open-sourced protocol. The project operates with support from the Ministry of Digital Transformation of Ukraine and plans to pay out the accumulated rewards every five days post the 14-days maturity period.
“Crypto proved to be a real lifesaver due to its ease of use. The crypto community has already shown unprecedented unity while standing with Ukraine. It’s a significantly important trend: Ukraine’s support is constantly growing. No wonder, both Ukraine and crypto serve the principles of freedom and democracy and get used to fighting for their rights,” said Oleksandr Bornyakov, the deputy minister of digital transformation of Ukraine on IT industry development.
The project is currently running on the Cardano ecosystem and uses the blockchain’s embedded features to validate transactions through the stake pools and issue rewards for each validated transaction in the form of financial support for Ukraine.
Any community member willing to join the initiative can stake their cryptocurrency directly in the Daedalus or Yoroi wallets without losing any funds. The locked funds are linked to a specific stake pool and can be withdrawn at any time.
“The format of the ISPO fundraising is not new to the industry but its scope was always limited to commercial projects. The tragic events that transpired in Ukraine made us take action and develop a fast and trustworthy way to support Ukrainian people in the decentralised space,” concluded Šeškas.