The University of Wyoming is embracing cryptocurrency staking as a novel way to collect funds.
The University of Wyoming will spend $4 million on nodes and staking at least three cryptocurrencies. Caitlin Long, a member of Wyoming’s Blockchain and Fintech Select Committee and the founder of Avanti Bank & Trust, a local bank that specializes in digital assets, announced the news on Twitter on April 28.
The University used $4 million from the state’s strategic investments and ventures fund to set up, run, and manage “nodes and staking pools for no less than three publicly tradable cryptocurrencies.” according to Long’s documents.
The proceeds from the University’s staking pools will be used to finance operating expenses before being used to repay the state’s investment fund for $4 million. Profits from the University’s staking will be allocated “to support blockchain programs and activities at the university and community colleges throughout the state.” until the investment has been paid back.
The University must balance every dollar appropriated from the investment fund with at least $2 in private donations or from the campus’ reserve funds before income earned from staking can be spent. Chris Rothfuss, the Wyoming Senate Minority Leader and Chairman of the state’s Blockchain and Fintech Select Committee, lauded the committee’s “herculean effort” in passing the bill. Many Twitter users have speculated that Cardano (ADA) may be one of the assets staked by the University in response to Long’s tweet.
One poster posted a link to details on a staking pool run by the University of Wyoming’s Advanced Blockchain Lab, according to CardanoStaking.info. The pool has minted fewer than ten blocks and pledged about $60,000 in ADA as of this writing.
The company behind Cardano, IOHK, donated $500,000 in ADA to the University’s blockchain lab in February 2020 to help advance its research.