University of Wyoming (UW) set to stake crypto to generate revenue
- UW will get £2.87 million for the staking program, which must include at least three coins.
- After paying the state, UW will support blockchain projects in other Wyoming colleges.
- The university has not yet disclosed which cryptocurrencies will be added to its staking program.
Wyoming’s governor has signed an appropriations bill that will allocate £2.87 million to a crypto staking program that will be run by the University of Wyoming. Caitlin Long, the founder and CEO of Avanti Bank and Trust, unveiled this news on April 28, noting that the staking project will include at least three cryptocurrencies. The gains from the staking pools will go to the university.
Reportedly, the state is yet to sign off the money from its strategic investments and projects fund to the university. Upon receiving the funds, UW plans to create, operate, and maintain nodes and staking pools for publicly tradeable cryptos. Initially, the university will amass the revenue generated and use the funds to cover operational costs. Afterward, the staking rewards will go toward repaying the state’s investment. The university will do this by depositing all excess revenue to strategic investments and projects until the £2.87 million investment is fully paid.
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According to the document that Long provided, the university is expected to support its blockchain programs and activities and those of other community colleges throughout Wyoming. UW’s expenditure of the generated revenue is conditional, seeing as the university will have to match the funds in the ratio of £0.72 of the appropriated funds to not less than £1.44 of matching funds from the university’s unobligated reserve accounts or private donors.
The publication went on to note that,
The state treasurer shall make transfers to the university under this section not later than the end of the calendar quarter following the quarter during which the matching funds are received by the university.
While it remains a mystery as to which coins UW will choose for its staking program, the crypto community on Twitter speculated that Cardano (ADA) might be one of the coins. One user shared information that Wyoming University’s Advanced Blockchain Lab is already running an ADA staking pool.
This news comes after IOHK, the firm behind ADA donated more than £358,460 to UW to help it continue with the development of its Blockchain Research and Development Lab.