Some are aware of this pending crowdsale (Sunday, October 15th, 6am EST), some not. But this crowdsale is going to be HUGE.
PRE: you can double check the correctness of our article by double checking the Polkadot smart contracts:
Ethereum Account 0xb59f67a8bff5d8cd03f6ac17265c550ed8f33907 Info
The Ethereum BlockChain Explorer, API and Analytics Platform
Ethereum Account 0x54a2d42a40F51259DedD1978F6c118a0f0Eff078 Info
Contract Source Code Copy Find Similiar Contracts //! Copyright Parity Technologies, 2017. //! Released under the…
Why? We answer with a list of facts:
- The minimum cap is 65 Million USD , the theoretical maximum cap is 30 Billion USD if everyone contributes at start time, but gets reduced to 1 Billion after 48 hours and decreases progressively over time.
- Timing has never been better for crowdsales: Crypto markets capitalization is today at 170 Billion USD today, according to coinmarketcap. The Ethereum and Bitcoin blockchains have been running smoothly for months and the recent Bitcoin HardFork has given revamp to the asset. Mainstream coverage on cryptos is a daily routine. ICOs are hot.
- Vast support from its own community: Polkadot has manged to build a big open source community of its own. On Polkadot’s website, you can see that their 12 “friends” are among the top 100 cryptocurrencies worldwide by market capitalization. You can be assured they will receive all the needed support from their partner communities.
- The crowdsale comes with an 8-month delay from its original plans: Polkadot’s ICO was initially planned for February 2017. The team has done everything they could to avoid speculation, even making the receipt of the sale illiquid for 2 years, until the Polkadot blockchain genesis block. This means they have been pitching the project all around the world to achieve vast distribution of their tokens.
- It is one of the possible forms of the Internet of Blockchains: it promises generalized private and public chains intercommunication, satisfying the needs of consortium and private blockchains. Corporates are going to love it!
- It is an alternative form of governance: Polkadot is based on the idea of a government based on code, collators and validators. It is a form of governance which will allow contributors to earn tokens by participating to the network with their own respecting roles. And in order to participate to the rewards mechanism, one must hold DOT tokens (this is how they are called).
- It is an auction with unlimited amount, everybody will be able to get in: The price of the auction decreases over time and is a reverse function of the amount received as contributions. Everyone gets in at the same price, which is the lowest final price. There is a bonus for first hour contributors; the reverse Dutch auction is quite complex but in practice, everyone willing to take part should be able to do so.
We believe the Polkadot auction will show the real value of blockchain ICOs far beyond speculation and hype. In fact, given the DOT tokens will be frozen for 2 years, we can expect all the people who buy into ICOs for a quick profit to skip this one, as the tokens will not be liquid for two years.
We conclude only users who are genuinely interested in seeing Polkadot succeed and looking to be part of the Polkadot “government” will take part to this auction.
Note: this is not advice. As per Polkadot’s disclaimer, DOT tokens are supposed to be illiquid for 2 years, or the Polkadot genesis block. As per DOT’s smart contract source, only admin (Polkadot) has the discretion to decide who can transfer the tokens.