This is a short article explaining our parachain slot lease offering (PLO) strategy and how PLO works.

After communicating with Polkadot community members, we realized that many people misunderstood the concept of PLO. A common misconception is that crowdfunding and auctions are the same thing. In the case of Shiden Network, crowd lending is different from auctions, and we focus more on crowd lending than auctions.

In the next few weeks, Web3 Foundation will announce the auction date at least 7 days before the auction starts, because we need 7 days to unlock the KSM tokens. At the same time, Shiden started crowdlending to collect KSM from our community. What is the incentive to join our crowdlending instead of an auction? This is a great question. Shiden prepares bonuses for PLO participants in order to encourage everyone to join our crowdlending instead of auctions as early as possible.

Simply put, the sooner you join our crowdlending (not auction), the more SDN you can earn! !

example

example

Shiden has prepared 15,400,000 SDN (22% of the total supply) for the first PLO. If you lock 1 KSM for Shiden Network, you will get X SDN after we win the slot. Assume 600,000 KSM (approximately $300 million) are locked during the PLO. In this case, X is 25.6 SDNs (15,400,000 SDNs / 600,000 KSMs).

However, since Shiden’s crowdlending has a bonus rate, if you join our crowdlending before the 3rd day auction, you can get about 30.8 SDN (6/5 × 25.6 SDN). (See picture above!)

On the other hand, if you join our crowdlending after this, your SDN will be lower than 25.6 SDN (about 20 SDN). We suggest that everyone, the sooner you join crowdlending, the more SDN you can get.

Note that the above is an example we gave. Since we also have waitlist bonuses etc. the numbers you can get are slightly different than the above.

learn more hereAbout Plasm

Plasm Network is a hub for dApps on Polkadot, supporting Layer 2 solutions like Ethereum and ZK Rollups. Plasm aims to be a multi-chain smart contract platform that will support multiple blockchains and virtual machines such as EVM and WASM.