I have two questions about ISO project launches, such as Sundae Swap:
What happens to the ADA security model if more and more people re-delegate their stake into the Sundae Swap ISO stake pool for their rewards, possibly drastically reducing the number of other pools? Are we just hoping this won't happen?
Pools can only stake so many ADA before they earn reduced/zero additional gains, so how can Sundae Swap simply tell everyone to jump into a single pool? If too many jump in, won't this be a waste of reward earning potential? Or shall they have numerous pools running?
There are several pools doing this, for example the MELD pools are also doing this. There is no reason that everyone would just choose one project among them and stake with them. And anyway, those projects have no interest in doing so because then the cardano blockchain, and thus their project, has no value anymore.
Moreover, it is not very different from mining pool that mine in one cryptocurrency (say ETH) and pay miners in another (say BTC). As long as there is a competition for rewards the game theory remains the same.
Yes, they can just create more pools. There are 8 MELD pools for example.