Deep Dive of Angle Protocol’s Terra Blockchain Validator Role In Generating Sustainable Income For Charities


Angel Protocol is on a nobel mission to help charities and donors with the power of Defi. Built on Terra Blockchain, Angel Protocol seeks to turn one time donations to charities to “Give once, give forever”. The protocol allows donors to turn their contributions into perpetual charity endowments. The protocol takes donor’s money, put it to work in Terra Blockchain Defi ecosystem, and periodically give its yields to the cause of Donor selects.

Suppose a generous individual pledges $110,000 to his local orphanage via Angel Protocol. The donor can tell the protocol to immediately credit $10,000 of his donation to the orphanage for use and pledge $100,000 as a perpetual charity endowment.

Angel Protocol then deposits his $100,000 to Angel in the back end via smart contracts to earn a 20% yield. By the end of one year, the orphanage is given another $20,000. The year after that, it’s given another $20,000. Part of the yield would be kept in the endowment fund to grow the principal to produce more yield.


Angel Protocol Validator

One of the key components of Angel Protocol’s Decentralized Non Profit Organization is it’s Terra Validator. Angle Protocol was launched on June 16, 2021 with a goal to crowdsource LUNA tokens from Terra Blockchain and help charities. It provides a great opportunity for LUNA holders to support their favourite cause by staking their LUNA tokens and donating some of their yield to a charity.

Here is how it works – as a Terra staker you can donate a small part of the yield from staking LUNA to a charity and keep the rest with for you. Let us go through a simplified example. Let us say when you stake your LUNA, you get 12% staking rewards which comprises of two portions – around 2% base yield and the remaining 10% yield in the form of MIR & ANC airdrops. If you stake LUNA with Angel Protocol, you will donate 2% of base yields to a charity while you keep rest 10% of airdrop staking yields. 10% of all rewards from the protocol will go to charity endowments until the protocol is fully funded, and after that, 100% of the profits will go to charity endowments.

Significant Growth in Angel Protocol Delegators, Driven By Wen Airdrop!

Delegators in the Terra ecosystem are LUNA holders who wish to receive stake rewards without running a validator. In exchange for not running a Validator Node, Delegators give a portion of their staking rewards to a Validator who manages a node. The delegators who stake LUNA with Angel Protocol, give 100% of the staking commission to fund a charity. Let us explore the growth of delegators staking their LUNA with Angel Protocol.

Since Angel Protocol launched its validator less than 6 months ago, 12000 unique delegators have entrusted their LUNA to Angel Protocol. Growing the number of validators started slowly, but picked up during September-October 2021. The growth could be attributed to the efforts of Terra Alliance, a consortium of protocols, validators, and NFT projects, was launched at the same time as well as to the announcement Wen Airdrop? on Angle Protocol Blog.  Thanks to @0xlambertd, the Lead Product Manager of Angel Protocol, for providing information on Airdrop Announcement.

In the following heatmap shows the growth of new delegators contributing to Angel Protocol Validator. It is clearly visible that most of the new delegators joined during Oct 9th and Oct 13 right after the airdrop announcement.

LUNA Delegated to Angle Protocol Validator

We now turn our attention to the amount of LUNA entrusted to Angel Protocol in the following chart. In the first week after Angel Protocol launch, around 27,000 Luna tokens were delegated. Within a month of launching its validator program, Angel Protocol had accumulated approximately 400,000 LUNA tokens, and the revenue generated by staking these tokens helped the organization to fund charities in need. 

The month of December is Universal Human Rights Month, when people around the world are encouraged to stand up for the rights and dignity of everyone. Most nonprofits raise over 50% of their total funding in December. The same is true for Angel Protocol validator and during the second week of December around 1 millions LUNA tokens were delegated to it.

Top 25 Delegators

There are 1.4 million LUNA tokens delegated to Angel Protocol as on Dec 4th week 2021. Out of which about 85% or 1.2 million were delegated by two delegators. One million of those LUNA tokens belong to just one individual terra whale, terra1e82da9n6jz4t42eh0wn5hrt6hdmf7jyq8sufkp and another 200,000 were delegated by the delegator terra1wqwfwh797tf77e2xpvy9xx082pwpxxlm9x4xws .  

Now let us look what percentage of these delegator’s LUNA is staked with Angel Protocol vs other validators who pay commission. The following chart shows LUNA delegated by each of the top 25 delegators and the percentage of allocation towards Angel Protocol. The delegator terra1lvtk7gme33a8qwc7xagnqemluwxjk948t60fg6 staked 96.4% of their LUNA with Angel Protocol and the rest 3.6% is staked with other validators. On the other end, the delegator terra1wqwfwh797tf77e2xpvy9xx082pwpxxlm9x4xws only 2.2% of their LUNA to Angel Protocol.

Rewards Generated By Angle Protocol Validator

The rewards generated by the Angel Protocol Validator provides life blood to the charities backed by Terra Alliance consortium. The following chart shows the weekly rewards generated by the validator. Since its launch around 630,000 USD worth of rewards were generated and lion share of that coming the in the last past 45-60 days or so.

The growth in rewards generated by the validator can be attributed to two factors – growth LUNA’s price and the 1 million LUNA staked during the first week of December by a whale. If the LUNA token sustains the current price of 100$ per token, Angel Protocol Validator will continue to generate at least 180,000 USD weekly for charities.

Forecasting Angel Protocol Validator Rewards In 2022

Predictive Analytics is a scientific method that uses data, statistical algorithms, machine learning and artificial intelligence techniques to identify future trends and make predictions about the unknown events in the future. The goal is to mine data, apply predictive modelling techniques to analyze current and historical data to provide best assessment of what will happen in the future.

Predictive analytics is used in marketing, business management, sports, insurance, policing, retail, travel, mobility, healthcare, social networking, and several fields. Credit Scoring is one of the best-known applications of predictive analytics and everyone with a bank account would have interacted with a predictive analytics system in their banking journey.

Now let use Predictive Analytics to forecast how much rewards will be generated by Angel Validator in 2022 using ARIMA model. ARIMA is a simple autoregressive model integrated with moving averages and it is considered one of the most reliable models for forecasting values like validator rewards. According to the model predictions Angle Protocol Validator will generate over 2 millions dollars in week by the end of 2022.

Final Thoughts

Unlike other non-profit organizations, Angel Protocol is a Decentralized Autonomous Nonprofit Organization (DANO), which aims to generate a constant stream of funds for charities around the world. Just like blockchain technologies, it’s a novel and brilliant idea. 
Angel Protocol’s founders are leveraging their extensive experience in running charities to spearhead charity initiatives in the crypto community and revolutionize how charities receive funds.

With more than 1.4 million LUNA staked and 180,000 USD of rewards generated weekly, Angel Protocol Validator is a key contributor in providing revenue to fund Nobel causes. In the week following the announcement of the HALO token airdrop and the formation of the Terra Alliance, the number of delegators joining Angel Protocol increased significantly. Forecast models predict that the Angel Protocol Validator will generate well over 2 million dollars in weekly rewards.
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