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In recent months, bulls and bears have butted heads trying to tackle crypto’s label as a ‘once-in-a-generation alternative asset class’. Naturally, there is no simple answer, leading to unyielding opinions regarding crypto’s appeal. However, what cannot be disputed is the opportunity that crypto presents, with many pioneers, bulls, and HODLers profiting on this untapped gold mine.
Despite its adolescence, crypto’s adoption is currently stationed at a critical juncture. As more retail investors and bigger-hitting financial institutions like Goldman Sachs and JP Morgan acknowledge and capitalize on crypto’s potential, many traditionalists are beginning to change their tune. Crypto bulls and HODLers are increasingly signaling their long-term confidence in crypto by staking their cryptoassets. Invictus Capital’s Staking Program provides investors with an opportunity to “lock up” their Invictus Capital tokens in return for passively accrued ICAP token rewards, the Invictus community reward token.
If many of traditional finance’s smartest, most prudent investors, HODLers, and bulls stake their crypto, why shouldn’t you?
Staking can be compared to traditional finance’s fixed deposit scheme, but there are two key differences. Instead of depositing fiat money, investors deposit Invictus tokens and accrue ICAP rewards instead of interest. The process of staking with Invictus Capital is straightforward — it only requires the ownership of Invictus tokens and a verified Invictus Account and Wallet.
By staking, you are temporarily “locking up” your tokens in your Invictus Staking Vault for a predetermined period (as chosen by you). This contributes to the additional expected returns on investments within the Invictus Fund Universe. As a reward for your stake, you earn ICAP. The amount of ICAP earned is dependent on your share of the overall Staking Program, how long you chose to stake for, and which tokens you’ve staked. Generally, it is pretty simple — the longer and more tokens you stake, the more ICAP you’ll accrue since you would occupy more of the Program. To calculate and assess your potential ICAP accrual, revenue returns, and program share, you can visit our community-created Staking Calculator.
ICAP acts as an indirect revenue-sharing mechanism since it derives its value from rebates on fund management fees used to purchase and destroy (buy-and-burn) ICAP from the open market. Every month 10.5% of the fee revenues generated in the prior month are committed to a weekly and equally-sized (in USD terms) buy-and-burn. This reduces the circulating supply and provides a base level of demand. The tokenomics, found in our ICAP litepaper, can be summarized in the diagram below:
It is important to note that the crypto funds offered by Invictus already generate yield on the fund’s assets — with any ICAP rewards a boon. ICAP staking helps Invictus generate greater returns on fund assets by allowing the management to enter into longer-duration, and more profitable yield generating strategies.
At Invictus Capital, we value our community’s thoughts and ideas — they are often the source of our successfully implemented features. To further amplify our community’s voice, we will attach a forward-looking governance module to ICAP tokens within the next three months. The goal is to allow ICAP owners to vote (without paying gas fees) on governance proposals by signing with their ICAP, but without any actual blockchain transaction. An investor’s voting power will be determined by the number of ICAP tokens owned. This exciting new ICAP feature will allow ICAP investors to have meaningful decision-making power in evaluating and prioritizing Invictus Capital’s roadmap.
If you want to utilize Invictus Capital’s Staking Program, please visit our website to find out how you can accrue ICAP tokens, which have more than quadrupled in value since ICAP was launched.
