As an ICONist you can stake and delegate your ICX to a Public Representative (P-Rep) and earn a decent staking yield in return (currently at 9.8%).
Public Representatives (P-Reps) are organisations or individuals that set up a validator node on the ICON ecosystem.
Their primary activities include creating and voting on network proposals that determine network variables and producing blocks for the network while also actively adding value to the ICON ecosystem through projects involving development, acceleration, or marketing.
The 22 P-Reps with the most votes become Main P-Reps that participate in on chain governance while those with less votes become Sub P-Reps who fill in for Main P-reps when their nodes go down.
The annual reward rate for P-Reps currently is 2.3% per annum per 1 ICX vote.
ICON Asset Management
One such P-Rep is ICON Asset Management or IAM for short https://myicon.finance/
IAM’s mission is two-fold:
- Develop and invest in applications that bring value to the ICON ecosystem
- Providing investors with a balanced portfolio of ICON assets and other cryptocurrencies
Think of it as an exchange traded fund (ETF) on the ICON network. You as an ICONist can become a shareholder in this ETF by purchasing IAM tokens that represent a portion of all the assets under management (AUM). IAM’s goal is to make sound investment decisions on behalf of its shareholders which in turn increases the value of the underlying IAM tokens. IAM tokens will be available to be bought and sold on the Balanced decentralised exchange in the future.
This is a decentralised crypto ETF!
While you wait for the IAM tokens to be available for purchase, you can in the meantime stake your ICX and vote for IAM who will in return offer 50% of its ICX P-Rep rewards as dividends to its voters, distributed in proportion to their votes.
@fezbox has a handy tutorial you can follow on how to stake and vote your ICX here.
As of November 2021, IAM is also the first and only P-Rep that is accounting for staked OMM votes in their ICX dividend distribution to voters. This allows OMM token holders to vote for the IAM P-Rep in Omm and in return receive an ICX dividend.
This not only creates intrinsic value for the OMM token but boosts the P-Rep rewards for IAM in the process. Collaboration at its finest.
How to participate in the daily dividend distribution as an OMM holder
There are 3 simple steps to follow:
- Stake 1 ICX or more and vote for IAM P-Rep via your ICX wallet (MyIconWallet, Hana or ICONex)
- Vote for IAM P-Rep on Omm using the same wallet (@hashoshi4 and @fezbox have created great tutorials on how to do this here and here)
- Connect that same wallet to https://myicon.finance/Dashboard, view your daily dividend distribution estimates and watch the dividends roll in daily, under the internal transactions section of your wallet. You can also get notified by using the MetrICX app. MetrICX is available for iOS and Android.
That’s it! You’re now not only an ICONist supporting one of ICON’s P-Reps but also an investor in a decentralised crypto ETF. Smart.
A decentralised crypto ETF! That’s a cool approach indeed
Bringing traditional finance principles to the decentralised finance space!