Recently, Polkadot adopted a new model called "Initial Parachain Offering (IPO)", which uses its parachain architecture and uses its local DOT token to provide a refreshing and certain degree of security. way to provide initial funding for cryptocurrency projects.
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The scientific design behind an IPO
In an interview, Peter Mauric, director of public affairs at Parity Technologies, made the following interpretation of Polkadot's IPO:
“Polkadot is a protocol where the relay chain provides layer-zero security and interoperability, and all additional parachains operate as sovereign layer-one blockchain projects. We see Thousands of interesting projects have been launched and operated in the form of smart contracts on many protocols such as Fangfang, and these projects will gradually realize that it may be a better choice to be parallel to Polkadot. As a parachain, the project party It will have a more efficient operation, a strong development team and a continuously optimized user experience."
What is important is that Polkadot's overall network architecture is based on the concept of parallel chains. Parallel chains are blockchain networks that operate independently of each other and can communicate across chains. In order to put a parachain into Polkadot, it must ensure that there are parachain slots available. But due to the limited number of parachain slots, Polkadot plans to provide 100 parachain slots in the future.
And if you want to access the parachain slot to become a parachain, you need to carry outCandle Auction for Parachain Slotssecondary title
What are the advantages of IPO compared with ICO and IEO
First of all, the IPO and Polkadot's relay chain in the IPO mode will act as a token custodian to ensure the safety of DOT holders' funds. This is different from Ethereum’s ERC20 tokens that are funded through ICOs.
An ICO would have investors send ETH to an unknown address and if the project fails, the funds cannot be withdrawn. In the Polkadot IPO, investors can also get their DOT tokens back at the end of the parachain lease period. It helps ultimately create a safer environment for investors and projects.
Since the funds of the IPO are held in a special account on the chain, and the purpose is to be used in the financing of specific parachain projects, this model brings greater transparency and accountability to the project than ICO.
Unlike IEOs, where projects must be scrutinized by exchanges, IPOs offer Dot holders greater flexibility and options.
challenge
challenge
While IPOs attempt to inject fresh blood into cryptocurrency project funding, challenges remain. After the official launch of the IPO, as more parachain projects access the relay chain and are bundled together to become a "community of destiny" to a certain extent, the work required by new parachain projects to unite their own communities may be This becomes even more difficult, as many of the project's supporters are also likely to be scattered across projects as stakeholders in other projects.
references:
references:
3. RACHEL W. “Polkadot reveals ‘initial parachain offerings’ to counter traditional IPOs” （online）
4. Polkadot Official “Obtaining a Parachain Slot on Polkadot” （online）
5. Shawn L. "Web3 Research Series: Candle-style Auction of Parachain Slot [Bidding Deduction]" (online)
