Litentry Crowdloan Recap, Plus Reward Distribution & Compensation Details
Litentry has distributed all rewards to its Crowdloan contributors. 💚 Huge thanks to our beloved community! Your support and engagement have meant the world to us.
On April 24th, 2022 , Litentry successfully won Polkdot Batch 3 auction and secured a slot on Polkdot Parachain. On June 4th, we completed our Parachain launch and started running on Parachain.
From sharing our Crowdloan schema to finally distributing the rewards to you, it has been such a great journey. We’d like to take a moment to look back, see how we’ve made it, and share the details of the Crowdloan Rewards for the contributors and our compensation for those being affected on Parallel proxy due to Parallel’s technical issues.
Looking back to Litentry’s Parachain journey
Our journey to Parachain is not a single leap of faith, but is step-by-step progress. As you may know, Litentry’s first two batches of the auction were not successful. But the team kept pushing more effort, coordinating with the community, bringing more partners, and reconstructed the reward scheme in order to win Batch 3.
How we powered through the auction from Batch 1 to Batch 3
📌 Batch 1 & Batch 2
We started Batch 1 at the beginning of November in 2021. 1.25 M DOT was raised from 5,766 supporters, and around 76% of the contributions were made before the end of November. But we did not win the Batch 1 auction, so all DOT contributions were automatically refunded to contributors’ accounts on December 17, 2021.
Then on December 18th, 2021, we started the Batch 2 Crowdloan campaign. In Batch 2, 3,504 participants made their contribution, including many of our Batch 1 supporters. Not only did we retain Batch 1‘s existing reward pool but also brought in a referral program in this auction.
However, we were still one step away from winning the auction, so we continued to focus on building and wait for the next LP(lease period) on Parachain.
🎉 Batch 3
Batch 3 auction went live on April 5, 2022, starting from LP 8 (from Slot #14 — #20). All contributors in the Litentry Crowdloan during the Polkadot Batch 1 auction and Batch 2 auction were eligible to participate in receiving corresponding bonuses and failure compensation.
And finally, we made it this time! We won Auction #15 and secured a slot on the Polkadot Parachain!
📊 An overview of Litentry Crowdloan
Our Crowdloan campaign for Batch 3 auction was a success and we could never have achieved this without the support from our community and partners.
From the day we went live on April 5 to the final participation day April 23, within less than 20 days, over 940k DOTs were distributed from 3,462 contributors. With a cap at 3M DOTs, we received 6,093 contributions in total.
During this time period, the highest single day contribution amount was on April 8. A total of 228.6k DOT was pledged for Litentry on that single day. It was also the day that saw the largest contribution increase and the day we hit our tier 1 goal. After April 13, the total continued to go up, but gradually smoothed over to a plateau with incremental increases only.
🎊 We hit our first 500,000 DOT goal on April 8. The early birds who helped to achieve the Tier 1 goal received 12 LIT per contributed DOT as rewards; those who contributed afterwards received 8 LIT per contributed DOT as rewards. In total, we have distributed 10,533,026 LIT as Crowdloan rewards in Batch 3.
In addition to the Litentry Croadloan Webapp and Polkdot.js, we have auction channels with our partners including Bifrost, Parallel, Equilibrium, Fearless Wallet, Kucoin, and Kraken. Most of the participants used our Webapp and Polkdot.js to contribute, while roughly 45% of the participants chose to contribute via our partner platforms.
A deeper dive into our failure compensation & the Parallel issue
💚 Failure compensation only with Litentry
Litentry is the only program that offers participants Failure Compensation. Although we did not win the auction in Batch 1 & 2, we do take our contributor’s interests into account and value their continued support.
All participants in Polkadot auction Batch 1 & Batch 2 received compensation if they re-entered Litentry Crowdloan in the Polkadot auction. The compensation ratio is LIT : DOT= 0.12 : 1.
Also, due to Litentry not being selected in the Batch 1& 2 auctions, Litentry will compensate the previous batch contributors in the new Crowdloan campaign with extra LIT until it wins a slot in the auctions. The compensation has been distributed on Litmus Network, you can check your failure compensation at www.apps.litentry.com.
The compensation plan won’t necessarily dilute the LIT token, as we have aligned the compensation APY with the total reward plan. The compensation will be aligned for all the decentralized platforms as well as Polkadot.js, but it will not be available for centralized exchange, because the centralized exchange generally has its own specific reward plan.
🔴 The Parallel issue
How we reward participants on Parallel is a bit different from others, because contributions made via Parallel encountered technical issues. Participants that contributed during the period of Tier 1 received Tier 2 rewards.
The Parallel Proxy address also delayed 5 days to transfer the contributions from participants to Litentry Crowdloan address. Due to this delay, participants thought that the contributions they made via Parallel fell to Tier 2 rewards.
After noticing this issue, we immediately reached out to Parallel to discuss the next step for those affected contributors. In the end, due to the lack of decision making plus the reward distribution delay in Batch 3, the Litentry Foundation decided to compensate affected users with 12 LIT per DOT from Litentry’s treasury.
Although among all third-party contribution platforms, Parallel held the most participants’ contributions, we do not recommend using Parallel as the auction platform. Due to its malfunctions, our Batch 2 contributors were not able to withdraw their DOT, and the Proxy address also delayed the transfer to the Litentry Crowdloan address, so we had to adjust our compensation scheme to those contributors from our treasury.
Looking ahead into 2022 and beyond
Web3 is inevitable but a long journey. Securing a slot on Polkadot Parachain is a big step forward for Litentry, and we couldn’t have come this far without your support and engagement.
We know that the moment you chose to follow us on Twitter, join our Discord/Telegram discussion, you decided to be part of the community that’s open to learning, sharing, and bringing real changes to the Web3 ecosystem. We truly thank you for this! 💚
Looking ahead, Litentry will continue to improve on privacy, decentralization, provide multi-chain support, and nurture our existing community with quality activities and workshops.
Let’s beat on, continue the journey to owning and controlling our online data, and unlock greater value with our identity!