Per a disclosure on Sunday, COTI, the team behind the development of the Cardano-based stablecoin Djed, noted that holders of the ecosystem reserve coin, SHEN, would earn delegation rewards depositing ADA to the reserve.
The Cardano ecosystem is set to record an expansion as its long-awaited first-ever stablecoin dubbed Djed would go live this week. The COTI team affirmed this expected launch on January 13 in a Medium post.
But the development of Djed began back in 2021 when Charles Hoskinson, the founder of the Cardano blockchain and CEO of Input Output Global (IOG) announced that COTI will be powering the overcollateralized stablecoin.
Djed 1.1.1 is Set to Go Live: SHEN Holders To Earn Rewards
The soon-to-come launch of the first version of Cardano’s overcollateralized stablecoin Djed 1.1.1 will include delegation rewards for SHEN holders starting from day one, according to the development team, COTI.
We are happy to share that Djed 1.1.1 will include delegation rewards for $SHEN holders starting from day one! In this update we explained Djed’s economics and delegation process.
— COTI (@COTInetwork) January 29, 2023
“In the past few months, we worked on enabling the reserved ADA, on the Djed smart contract, to earn delegation rewards for SHEN holders. We are happy to announce that the hard work paid off and delegation rewards for SHEN holders will be included in Djed 1.1.1,” part of the update read.
While the COTI team further noted that the technical setup devised for the inclusion of delegation rewards for the reserve token holders is temporal, the conditions SHEN holders must meet to be eligible to receive delegation rewards, the distribution pattern, and the underlying techniques were carefully outlined in the update.
However, it was said that a more robust multiple-pool staking technology will be onboarded alongside the launch of the planned advanced version of Djed stablecoin (v1.3). First, a SHEN holder must deposit ADA to the reserve.
According to the update, “the ADA tokens that will be deposited to the reserve for minting SHEN will collide along with the collected mint/burn fees for SHEN and DJED and will also be delegated to a dedicated public staking pool operated by Wave Financial.”
Although Wave Financial is categorized among the most reputable stake pool operators (SPOs) in the Cardano network, a certain Twitter user and many others called COTI’s SPO selection, “a bad stake pool choice.”
Furthermore, the update revealed that at the end of each epoch, the rewards received by the staking pool would be calculated. And delegation rewards would be automatically sent to eligible SHEN holders directly to their wallets.
Notably, these rewards are designed to be distributed to qualified SHEN holders after every 20 days. The amount of delegation rewards allotted to each eligible SHEN holder can be checked on died.xyz, the team revealed.