Editor's Note: This article comes fromChain News ChainNews (ID: chainnewscom), author: Zhang Gaijuan, published with authorization.
Editor's Note: This article comes from
Chain News ChainNews (ID: chainnewscom)
Polkadot, a public chain project that has received much attention and a major competitor of Ethereum, will start its third round of financing at 11 am Beijing time on July 24. Since its launch, Polkadot has completed two rounds of financing and sold a total of 5.5 million DOTs. The third round of financing will provide 300,000 DOT quota. Among them, the single price in the first 72 hours is 120 US dollars, and then the unit price becomes 145 US dollars. The DOTs purchased through the public sale need to be locked for 5 months, but during the lock-up period, they can be used for pledge and voting.
Lianwen sorted out the key history and development progress of Polkadot.
List of Polkadot history and development progress, drawing: Lianwen
first level title
How did this expensive project come true——A review of Polkadot's financing history
In 2016, Gavin Wood, co-founder of Ethereum and founder of the Web3 Foundation, launched the Polkadot project with the goal of moving towards a decentralized Internet, namely Web 3.0.
5 million DOTs were sold in the first round of crowdfunding, but 63% of the raised ETH assets were frozen
In October 2017, the year after the project was launched, the Polkadot project manager, the Web 3 Foundation, conducted crowdfunding (the first pre-sale of tokens) through a Dutch auction, and completed more than 480,000 Ethereum (about 144 million at the time). U.S. dollars), and sold 5 million Polkadot native tokens DOT (an average of about 29 U.S. dollars per DOT). Investors in this crowdfunding include well-known venture capital institutions such as Bosst VC, Pantera Capital and Polychain Capital.
However, the Web3 Foundation team stated at the time that the affected multi-signature wallet did not contain all the funds of the Web3 Foundation, and had no impact on the development of Polkadot, nor would it affect the second financing plan for the Polkadot project.
secondary title
In June 2019, Polkadot completed a new round of financing by selling the token DOT. The Web3 Foundation previously confirmed to Lianwen that 5% of the total DOT tokens were sold to institutional investors in this round of financing. Polkadot’s valuation in this round of financing is about 1.2 billion US dollars. This means that in this round of financing, the average price of each DOT is about $120. In this round of financing, the initial selling price of DOT tokens ranged from 70 to 100 US dollars. When the financing was close to the end, the selling price of each DOT had reached 140 US dollars. However, the foundation did not disclose the amount received in the sale. It is unclear whether the targeted $60 million in sales was achieved.
image description
The three founders of Polkadot (from left): Robert Habermeier, Gavin Wood, Peter Czaban
first level titleplanWhat is the DOT distribution method and token economic model?
Next, let's take a look at the token distribution method and economic model of DOT.
According to Polkadot's original
, the total initial circulation of DOT is 10 million. After issuing 5 million tokens in the first round of financing, of the remaining 5 million, 3 million will be reserved for the Web 3 Foundation (retained or distributed at its sole discretion), and the remaining 2 million DAT before "genesis" will be for sale or other distribution.ReportThis means that, in addition to the 800,000 DOTs that have been distributed or will be distributed to investors in the second and third rounds of financing, there are still 1.2 million DOTs that have not yet been distributed.
In addition, when Polkadot launched the testnet Kusama last year, it stated that 1% of the Polkadot genesis mainnet DOT tokens will be reserved as a final incentive for Polkadot testnet Kusama stakeholders and contributing communities. However, the specific incentive mechanism has not yet been determined.
ReportdescribeAccording to the Web 3 Foundation, due to market sentiment, the number of global sales directly through the Polkadot website will drop to 3% to 1%, and another 2% of private equity rounds will be sold exclusively to US investors through third parties. Or, the specific sale time is unknown. According to the Web 3 Foundation, 3% of the DOT will be sold at a price consistent with the latest (third) private sale round. The specific distribution is as follows:
However, the total supply of DOT is not fixed and has no upper limit. The maximum circulation of DOT tokens is "10 million initial circulation + inflation".
describeoverview, DOT uses an inflation model to issue new tokens to validators and nominators for rewards. The model envisages that the supply of DOT will gradually increase every year to reasonably guide the number of token pledges and achieve consensus security and token liquidity.
According to the latest version of Polkadot
overview
, the use of treasury funds is ultimately controlled by DOT holders through referendums. The way the treasury is funded is by transferring some validator rewards (from inflation), a small portion of transaction fees, and slash penalties (fines paid by malicious or incompetent validators). These funds are used for the smooth functioning of the system and the wider ecosystem (marketing, community events and collaborations).
As shown in the graph below, the issuance rate going to validator nodes and the issuance rate going to the treasury will vary based on staking participation.
image description
The abscissa is the pledge rate, the Y-axis represents the annualized inflation rate (10% in the first year), the blue line represents the inflation rate generated by validator node tokens, and the green line represents the annualized rate of return of the validator node. Source: Web 3 Foundation
