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What Is Polkastarter And The POLS Token?
Polkastarter is among the top-tier IDO platform in the crypto world. It has enabled many projects to raise funds cheaper and faster than IEO platforms. This guide will reveal what Polkastarter is, how it works and what benefits you can enjoy using its native POLS token.
With the mass adoption of DeFi solutions, there is an incredible increase in the number of crypto-related startups. Previously, early-stage blockchain projects used to raise funds needed for developing and getting their tokens into circulation in the most efficient way possible through initial coin offerings (ICOs) and initial exchange offerings (IEOs). However, it resulted in a lot of scams of all kinds. The next step was Initial DEX Offerings (IDOs) which offer an easier, faster, and cheaper way of raising funds for any project. Among a wide range of IDO platforms, Polkastarter (POLS) is certainly one of the most notable names. Let us find out what this IDO platform is special about.
Polkastarter is a decentralized cross-chain platform that enables users to launch and invest in token sales on multiple blockchains. The POLS token is the native cryptocurrency of the Polkastarter protocol and is used to power all transactions on the platform.
The Polkastarter protocol allows for the creation of hybrid token sales, which can accept both POLS and ETH. This allows users to participate in token sales that are not limited to a single blockchain. Polkastarter also offers a decentralized exchange (DEX), which allows users to trade tokens without the need for a third party.
The Polkastarter platform is designed to make it easy for anyone to launch a token sale. There is no minimum amount required to launch a token sale on Polkastarter, and the platform supports a variety of popular blockchains.
What is Polkastarter doing for governance and network security? Polkastarter’s native utility token is the POLS token. The POLS token has been designed for several use cases. Firstly, POLS tokens can be used to pay for transaction fees. Secondly, the POLS token will be used for community governance as part of their recently announced Polkastarter Council for Governance.
Users can earn rewards by providing liquidity on the Uniswap platform by staking POLS. Users will then earn rewards on a percentage of the transaction fees (more explained below).
Furthermore, the POLS token can be used to gain early or limited access to token pools on Polkastarter through staking. It’s worth bearing in mind that users must first provide liquidity before being able to stake POLS and earn rewards and perks for doing so.
Currently, there are 100,000,000 POLS tokens written in the protocol to be minted. 22,500,000 of which are committed to liquidity – split between liquidity token rewards and secondary liquidity provision.
What Is Polkastarter Liquidity Mining With POLS Token
One of the main challenges with crypto token sales is the liquidity provision (or lack thereof). The critics of crypto can’t stave away from the price volatility of new tokens, due to the relatively scarce liquidity. Think of it this way – your investment is a stone – and the liquidity pool is water. If you drop a stone into a small puddle, it will cause more of a disturbance and ripple-effect than if you had dropped it into the ocean. The same principle applies to decentralized token pools.
Liquidity mining has become a popular tokenomic model to reward users who provide liquidity to a token pool, in a way to combat this issue.
Polkastarter anticipates becoming the largest decentralized token launch pool and auction platform in crypto. With this, the Polkastarter development team has created a tokenomic structure to facilitate a level of global volume. Liquidity mining offers users incentives and rewards for providing liquidity, which helps attract more traders. More traders equal more volume, which in turn creates a more successful and stable token pool.
Polkastarter rewards liquidity providers in POLS tokens every week, respective to the percentage of the pool they’ve provided liquidity to. Rewards will appear for 24 hours when users can log into their account to claim. If rewards are not claimed by the deadline, the POLS tokens will be returned to the rewards pool, and distributed again at a later time.
How Polkastarter Handles Fixed Swaps
The fixed swap pool on Polkastarter are the most notable components of the network. The team decided to use this architecture for their DEX because these fixed swap pools are able to counteract the price volatility that’s often seen in automated market making. Fixed swaps are also preferable for crowdfunding and fundraising in general as they provide users with a far greater level of transparency.
So, Polkastarter is using fixed swap pools rather than the automated market making employed by the majority of decentralized exchanges. This approach has helped Polkastarter overcome many of the challenges faced by exchanges. Most notably it counteracts the artificial inflation of prices by private investors who then dump their tokens. This helps to stabilize prices for new token offerings.
Another benefit of the fixed swap pools is that it ensures tokens are distributed more fairly while also eliminating the risk of rug pulls in the liquidity pools.
Where automated market making uses a bonding curve approach to determining prices, Polkastarter has taken an approach that uses fixed prices when swapping between tokens.
This allows for the additional parameters being added to the system, such as setting a maximum on how much an individual can contribute to a project. Plus it is easier for developers to set additional parameters that ensure fairness and transparency for new token holders.
What Makes Polkastarter Unique?
Polkastarter’s main offering is its fixed swap smart contract, which allows projects to easily launch liquidity pools that execute orders at a fixed price — rather than using the AMM model made popular by Uniswap.
The platform is designed to handle a range of auction types, including sealed-bid and dutch auctions, as well as both fixed and dynamic ratio swaps. This makes it suitable for cryptocurrency projects looking to raise funds, as well as a variety of other use-cases, including private trades, OTC deals, and discounted sales.
Beyond this, other key features of the platform include permissionless listings, anti-scam capabilities, full KYC integration and liquidity mining.
It should be noted that many of these features are currently unavailable, but are scheduled to launch at a later date — possibly after Polkastarter transitions to the Polkadot network, which is currently slated for Q1 2021.
How Many Polkastarter (POLS) Coins Are There In Circulation?
As of February 2021, a total of 56.5 million POLS are in free circulation, out of a total supply of 100 million tokens.
POLS initially launched with 17.875 million tokens in circulation, but this has since increased to its current levels due to the gradual release of locked tokens. According to the official tokenomics, POLS should reach 100% dilution 24 months after listing (approximately late September 2022).
Overall, the total supply is divided as follows:
- Foundation reserve: 10%
- Team & Advisors: 10%
- Marketing fund: 10%
- Liquidity fund: 22.5%
- Seed sale: 15%
- Private sale: 22.5%
Team tokens are locked for 1 year and are then unlocked at a rate of 25% per quarter.
How Is The Polkastarter Network Secured?
As of March 2021, Polkastarter is based on the Ethereum blockchain and POLS is an ERC-20 token. As a result, it is secured by Ethereum’s extensive proof-of-work (PoW) mining system, which sees thousands of miners and nodes work together to keep the network secure.
In Q1 2021, Polkastarter is scheduled to migrate to Polkadot. This move will be facilitated through its partnership with Moonbeam, which will allow the Polkastarter team to easily port its current Ethereum-facing code to Polkadot. Once launched on Polkadot, transactions will instead be secured by Polkadot’s hybrid consensus mechanism — consisting of GRANDPA and BABE.
BABE is used to propose block producers, whereas GRANDPA finalizes them. The two systems work together to prevent centralization and protect against Sybil attacks.
Key Features Of Polkastarter
Polkastarter is a cross-chain decentralized exchange that allows for the swapping of digital assets. It is powered by Polkadot and uses its unique features to offer a safe and secure platform for users to trade their assets.
Some key features of Polkastarter include:
- Cross-chain swapped digital asset trading. Users can trade digital assets from different blockchain protocols on Polkastarter. This is possible due to Polkadot’s relay chain which enables interoperability between different blockchains.
- Decentralized governance. Polkastarter is governed by its community of users. All decisions regarding the platform are made through voting by the community.
- Security. The platform uses Polkadot’s security features to ensure the safety of user assets.
- Speed and efficiency. The use of Polkadot’s relay chain enables fast and efficient trading of assets on the platform.
- Being user-friendly. The platform has a user-friendly interface that makes it easy for users to trade their assets.
Polkastarter is a key player in decentralized exchanges and offers users a safe and secure platform for trading their digital assets. It is one of the most promising projects in the blockchain space and is sure to play a significant role in the industry’s future.
Polkastarter helps you manage your projects by providing a simple, easy-to-use interface. It includes features like task lists, notes, and file management to keep all of your project information in one place.
One of the best things about Polkastarter is how it works. The application synchronizes with your online account, which means that any changes to your projects will be updated across all of your devices. This is a great feature if you work on projects from multiple locations or want access to your project information when you’re away from your computer.
Polkastarter is also available as a mobile app, so you can take your projects wherever you go. The app is available for both Android and iOS devices, and it includes all of the same features as the desktop version.
So if you’re looking for a simple, easy-to-use project management application, Polkastarter is an excellent choice. It has everything you need to manage your projects effectively, and it synchronizes with your online account so that you always have access to the latest information. The mobile app makes it easy to take your projects with you wherever you go.
Polkastarter was founded in 2018 by by Peter Kim, Founder & CEO of Cosmochain, and Denis Dzyubenko, Co-Founder & COO of BoolBerry. It is a cross-chain protocol that allows projects to launch token sales on multiple blockchains simultaneously. ICOs were struggling to reach their hard caps due to the high costs and lack of liquidity. Since its launch, Polkastarter has helped over 50 projects raise millions of dollars through its platform. Some notable project launches include Binance Coin (BNB), Fetch.AI (FET), and BitTorrent (BTT).
The Polkastarter team is committed to building the most user-friendly and efficient token sale platform available. It is constantly working to improve its system and add new features. Here are some of the things Polkastarter has planned for the future:
- The integration of KYC/AML procedures to ensure compliance with regulations.
- The addition of new blockchains, including Ethereum 2.0 and EOS.
- The improvement of user interface and experience.
- The development of a secondary market for tokens sold through Polkastarter.
- The integration of payment gateways to allow for the purchase of tokens with fiat currency.
Polkastarter is constantly evolving to meet the needs of the ever-changing cryptocurrency landscape.
Use Cases & Major Features
Polkastarter is expanding the fundraising space for cryptocurrency projects by allowing crowdfunding to take place. This benefits the companies using the ecosystem, but can also allow buyers to benefit from discounts in the auction process. Users also get access to full KYC integration and in the future there will be governance provided by a fully working DAO.
The Polkastarter network is superior to similar projects in the space as it promises all the following features:
- Functionality – Polkastarter uses sharding technology to allow for switching easily between various blockchain protocols. This enables the interoperability across blockchains so that users can swap any tokens from any network.
- Transaction speed – Transaction speed has been an issue with many blockchains as their user base grows, but Polkastarter uses the Polkadot Network, which means Polkastarter can easily process 160,000 transactions persecond, with the ability to reach as high as 1 million transactions persecond if needed.
- Governance – Because the native POLS token is used for governance any user that holds the token is able to participate in the network ecosystem by voting on the different auction types, token utility, and changes/additions/deletions to product features.
- Data sharing – Cross-chain transactions aren’t all that’s made possible on Polkastarter. It also facilitates data sharing between the protocols of different blockchain networks.
- Interoperable Token Pools – Polkastarter brings cheap transactions, secure ultra-fast swaps, user-friendly design and the possibility to buy and move assets between blockchains all in a user-friendly design.
When Polkastarter was still on the drawing board the founders were aware that it would need a mix of interoperability, scalability, speed, governance, and upgradeability. Various options were explored, but ultimately the founders chose Polkadot based on a presentation given by Gavin Wood on Substrate, which allows for the creation of custom blockchains within a simple framework.
Polkadot also had all the features that were envisioned to be needed by Polkastarter. It has a combination of scalability and speed that popular blockchains such as Bitcoin and Ethereum can only hope to achieve. It also has far lower fees when compared with these other blockchains.
Scalability on Polkadot is achieved through:
- Horizontal scalability in the form of Parachains
- Vertical scalability via it’s GRANDPA consensus mechanism. GRANDPA enables parallel pipelined processing of blocks (also known as asynchronous block formation)
Polkadot also provides Polkastarter with the ability to feature cross-chain swaps via EVM compatibility combined with Web Assembly. It also allows for cross-chain value transfers via its Asset Bridges, which was crucial for Polkastarter.
With Substrate Polkadot provides the framework to build the Polkastarter blockchain efficiently. And the platform has the ability to interact with external blockchains through Polkadot’s bridges, which allow parachains to communicate both internally and externally.
With the sophisticated governance mechanism included in Polkadot there’s no need to worry about the governance issues and upgradability problems that are faced by other blockchains. Polkastarter will be able to use this governance mechanism to evolve over time based on the needs and desires of the blockchain stakeholders.
In short, the founders of Polkastarter are fully convinced that Polkadot is the ideal blockchain for building the Polkastarter vision.
The POLS Token
The native token used in the Polkastarter ecosystem is the POLS token. It has a total supply of 100 million tokens and a circulating supply of 56.5 million tokens.
POLS Token Utility
POLS is used on the Polkastarter ecosystem as a utility token. Among its major uses are governance, staking, and liquidity mining.
Governance – As a governance token, its holders can vote on crucial matters such as protocol features and tokens to be displayed on the network. They are also able to vote on the fee structure of the network; transactions on the platform are paid using the native POLS currency. Eventually the network will moved to a fully automated DAO governance structure.
Staking – The token can be staked to earn staking rewards on various fronts. For example, it can be staked to receive pool rewards or for pool access. Note that staking POLS for pool access is not a given, but is solely decided upon by each individual pool creator. That said, the choice to allow staking for pool access is ideal for giving top liquidity providers private access to high-end pools.
Liquidity mining – Additionally, Polkastarter’s native currency can be staked to participate in liquidity mining. Rewards are distributed to entities providing liquidity on the secondary markets, among other subsections.
POLS tokens are set for distribution as follows:
- 15% for Seed sale
- 5% for Private sale
- 5% for Liquidity fund which will supply liquidity to Uniswap and other exchanges
- 15% for Ecosystem growth which includes marketing, awareness, partnerships and exchange listings
- 10% to the Team and Advisors
- 10% to the Foundational Reserve
Polkastarter has had several private funding rounds with the funds being distributed as follows:
- 45% to the developer team
- 20% to marketing actions including partnerships, awareness, and go-to-market strategy
- 5% to legal and accounting
- 30% to supply liquidity to exchanges
POLS Token Price History
After listing in late September2020 the POLS token immediately took off higher, reaching levels near $0.65 by early October and giving the early private investors who bought tokens at $0.015 or $0.025 some massive returns.
Within a month price was trading near $0.13 and by October 29, 2020 the token was at an all-time low of $0.09986. Since then the token has been on fire however. It began rising at the start of December 2020, and was trading at $2.40 by early February 2021.
While those gains were impressive, from February 10 to February 16 the token more than tripled to reach an all-time high of $7.51. Since then it has pulled back to the $5.57 level, but the potential for more massive gains still exists.