How you can earn $PSWAP through $DOT & $KSM Bondage
- The SORA Network, which is the network that Polkaswap is being built on, plans to obtain parachain slots for Kusama and Polkadot
- 30% of PSWAP tokens are reserved to give as rewards to those who join the Kusama parachain auctions and Polkadot parachain auctions during the first 6 years (3 terms with 2 year lockups each)
- After the initial 6 year period, the SORA Parliament will be in charge of obtaining the funds necessary to secure parachain slots
Polkaswap is a DEX designed around the interoperable DeFi future, so it has always been a part of the plan to bring together as many assets from as many chains as possible. Polkadot will greatly simplify this by providing a Host relay chain, a cross-chain message passing protocol (XCMP), and shared protected runtime execution enclaves (SPREE). However, to fully take advantage of these technologies, it will be needed to connect to the relay chain as a parachain.
Parachains can be thought of as prime pieces of real estate where independent economies can operate, complete with their own native tokens if desired. These specialized chains run parallel to, and are fully interoperable with, the rest of the Polkadot network via the secure passing of messages with the relay chain. Thus, it is important to secure a parachain slot for any player who wants to execute custom computations, store their own data, and/or operate their own economy within the Polkadot ecosystem, without resorting to paying hefty fees.
Kusama is a faster-evolving network than Polkadot, and as such it will have parachain slot auctions first. After that, Polkadot will have auctions, perhaps at a much later time. Despite their similarities, Kusama and Polkadot are distinct networks and having a parachain slot on one network does not grant you the same access on the other.
Obtaining a Parachain Slot
To obtain our parachain slot, the SORA Network must participate in the parachain slots auction. The important thing to note about these auctions is that they require us to make our bids by bonding KSM (for the Kusama parachain) and DOT (for the Polkadot parachain) , with each winning bid securing the parachain slot for up to two years. After the two-year lease is up, users who bonded their KSM or DOT will get them back.
The dates for these auctions have not been announced, but we anticipate them to be extremely competitive given the limited number of parachains scheduled to be made available. This means that most network operators who wish to secure a parachain slot will need to engage and incentivize their communities for support to have a chance at outbidding the competition.
This is where you come in.
Rewards for Participating in the SORA Parachain Auction for Polkaswap
While the exact number of KSM or DOT that are needed to win a parachain slot is not yet known with any confidence, without your support, obtaining a parachain slot for Kusama and for Polkadot will be incredibly difficult. As such, we’ve made sure that the importance of the role you play in obtaining parachain slots is reflected in the generous incentives we’re making available during these auctions.
We are reserving up to 30% of the total PSWAP supply (30 million PSWAP) to reward the community for helping the SORA network win and maintain the KSM and DOT parachain auctions for the first 6 years. After 6 years, it will be up to the SORA Parliament to finance future parachain leases.
Though the specifics can change as we find out more details, we would generally like to use up to 10% of PSWAP (10 million tokens) to distribute proportionately to community members who agree to bond their assets for two years during the upcoming KSM and DOT parachain auctions, with the specific amounts decided at a later date.
In the case our bid does not win the auction, contributor tokens will not be locked up and PSWAP will not be distributed. In this scenario, we will repeat the process at the next scheduled auction until we are successful at securing both of our desired parachain slots.
How to Participate and Earn $PSWAP
Because the auction dates are still unknown, we cannot provide any specific instructions about participation just yet. As more details about parachain auctions become available, the Polkaswap team will begin to coordinate with the community via the official Telegram and Twitter accounts, so be sure to follow those and enable notifications if you haven’t yet.
In the meantime, be sure to accumulate an amount of DOT and/or KSM relative to the contribution you would like to bond when the auctions begin.