Polkastarter (POLS)

Precio, gráficos, capitalización de mercado de Polkastarter (POLS) | CoinMarketCap

The 1 Minute Summary

POLS is the utility cryptocurrency token for the Polkastarter fundraising platform. Polkastarter is designed to enable projects raise financing on a decentralized and interoperable environment based on Polkadot infrastructure.

The Deeper Dive

Founded by Daniel Stockhaus (CEO) and Tiago Martins (CTO) Polkastarter and POLS were launched in December 2020. The total POLS coin supply is 100m POLS.

Projects raise financing on Polkstarter by an initial DEX offering (IDO), which basically means the launching of a new cryptocurrency on a decentralised exchange (DEX). Polkastarter has gained a lot of attention as they have been successful in attracting investors both corporate and retail in new blockchain projects being launched on the platform.

In May alone they launched 9 projects raising over 535 ETH and 1298 BNB.

POLS has three primary use cases detailed below, but it can be summarised simply for the investor as the currency for investing in the startup projects that Polkastarter is hosting.

  1. IDO whitelisting: Polkastarter community members are not able to join an IDO unless their address is whitelisted by the project looking for funding.

    Polkastarter have made great strides in improving accessibility to join IDOs, with the the latest IDO whitelisting update that went live on the 10th of May.

    Whitelist spots are randomly allocated but follow a pro rata ownership of POLS tokens. Community members receive one entry per 250 POLS held (it used to be 3000), so the more POLS held the greater chance of getting an opportunity to part take in the IDO.

    They’ve even added “bad luck” protection ensuring wallets can only win a maximum of 1 IDO per week, greatly increasing the opportunity for a wallet to be whitelisted. More information can be found here.
  2. Liquidity mining: Join a mining pool to provide liquidity either in the ETH/POLS or BNB/POLS pools.
  3. Governance: Holders of POLS token can vote and submit proposals. Proposals are

POLS ICO

As mentioned previously the total coin supply for POLS is 100million. Looking at the Polkastarter launch whitepaper the coins where distributed in this manner:

POLS ICO distribution, source Polkastarter white paper.

Fixed Swap Pool

A core feature offered by Polkastarter is their fixed swap pool. This enables projects to be listed at a fixed price removing the volatility during a new token launch. This is obviously very helpful for new projects a given the significant unknowns around token value particularly during the early price phases.

Fixed Swap Pools solve three main challenges:

  1. Lack of control mechanisms: Unfair token distribution and rug pulls (where the developers defraud investors.
  2. Prevent token dumps by private investors
  3. Reduce token offering costs

The controls that Polkastarter have put in the place really are targeted at provided a stable, organised fair token swap infrastructure, particularly limiting automated trading where bots buy up early liquidity.

Technicals

As the Polkastarter name suggests, POLS is created as a Polkadot Parachain utilising the Polkadot substrate framework. As a result Polkastarter gains all the benefits of the Polkadot network for example utilising the highly efficient Nominated Proof Of Stake consensus model.

Additionally Polkastarter gets the following advantages:
– Native Polkadot compatibility
– Hassle free upgrades (you don’t need to fork i.e. split your blockchain when upgrading)
– Interchain connectivity: once connected to Polkadot you can pass messages to other chains in the network
– Security, once a chain is connected to Polkadot it will be secured by Polkadot’s pool security.

By using Substrate, developers can rest assured that their chains are interoperable with the Polkadot ecosystem.

The Polkastarter team maintain a great blog here to help you keep up to date with the rapids evolving project.

Summary

Polkastarter/POLS appears to be going from strength to strength, with a significant number of projects now launching on the platform. There is a strong experienced team, leveraging the latest cryptocurrency technology and offers early access to many new exciting projects, so allocating a portion of your cryptocurrency investments to POLS does offer some advantages.