Parallel Finance Crowdloan Details
This is article is an estimate based on current data. The exact amounts will change once we have the final numbers after the crowdloan ends.
We are excited to share our crowdloan token details with the community!
Parallel has allocated 1,500,000,000 PARA tokens for our current and future crowdloans. For our first crowdloan, we are allocating 1,250,000,000 PARA to our supporters to be distributed once Parallel secures a parachain slot. We have elected to do this in the form of a base reward for contributors plus multiple incentive bonuses. The total base PARA received in this crowdloan auction will comprise of:
- Base Rewards
- Time Bonuses
- Referral Bonuses, if applicable
- Extra Bonuses (to be announced)
If our crowdloan base and incentive rewards fail to reach 1.25 billion PARA, the remaining tokens will be allocated to each of you who contribute. Once our slot is secured, 1.25 billion PARA tokens will be distributed to the community. Today however, we simply do not know how much DOT we will receive and what the various rewards might be.
The chart below summarizes some potential scenarios as examples. In the event we secure an auction slot with 25 million DOT (100% contributed through the Parallel platform) and the average user receives a 20% early bird bonus, a 10% referral bonus, and a 5% extra bonus, aggregate base rewards of 1.1 billion PARA will have been distributed leaving 136 million PARA. These remaining tokens will be distributed to the same group of supporters proportional to their contribution, a total of 1.25 billion PARA distributed to the community.
Once 1.25 billion PARA in rewards have been allocated, rewards will stop for our parachain auction. No matter what, we will be distributing exactly 1,250,000,000 PARA tokens.
What if I contributed via PolkadotJS instead of the Parallel platform?
Contributions via the PolkadotJS wallet have a lower base reward but will be treated ratably for excess reward distributions. Your contribution percentage will not be affected by where you contribute, your base rewards will be.
What does the 1.25 billion PARA cover?
Base rewards and bonuses are all covered in this allocation. Partner rewards, the 4 PARA you can receive by contributing to other projects on our platform, are not included in the 1.25 billion and will come through our reserves. This means that we will be contributing over 1.25 billion in the form of rewards and Partner Reward Bonuses!
Why are you not allocating all 1.5 billion tokens today?
We believe Parallel has an incredible future and are excited to share it with each of you. We do however need to think of that future today in regard to our partners and their upcoming bids as well as future auction slots. As such, we are retaining a small percentage (2.5%) of our overall supply for the next potential round of auctions and additional partnership reward bonuses to support the other projects within our ecosystem.
Where will the 250 million PARA go? Why is this important to retain?
We anticipate needing additional PARA for the 2023 parachain auctions and also want to continue to incentivize projects who bid for later slots through our platform via Partner Reward Bonuses. Community is important to continue bootstrapping liquidity and helping other projects realize capital efficiency. As projects use our platform in this round and future ones, we will continue to support them with our PARA tokens and reward bonuses to help the entire ecosystem.
What about partner projects and those rewards?
Our partners and the ecosystem are crucial to our shared success. Rewards for each of our partners are what we like to call Partner Reward Bonuses. A portion of the 250 million PARA in reserve will be used to support community projects who use our platform in this round of auctions AND future rounds. We want to continue to support the numerous great protocols coming to the parachain auctions and fully intend to do so.
I hope this has been helpful to the community and we look forward to this journey together. If you have any questions, please reach out and we look forward to solving any issues together.
James and the Parallel Team