Polkadot
Polkadot is a sharded, multichain, heterogeneous layer 0 network made up of the base platform, known as the Relay Chain, and connected chains, known as parachains. The Relay Chain does not support application functionality; its purpose is to provide security to the network's application-specific chains i.e., parachains
Categories:
Layer1
Updated:
2023-03-10
Tags:
Proof of Stake
Ticker:
DOT
Token Strength.
Token Utility:
-Payment of transaction fees. -Participation in governance. -Securing the network via staking. -Participating in parachain slot auctions.
Demand Driver:
-Staking yield -Participation in parachain slot auctions -Paying transaction fees -Participation in on-chain governance.
Value Creation:
-Polkadot is a payment network and foundation to run parachains which are sovereign blockchains. -The more users stake their $DOT, the more secure the network is. -Allows blockchains to connect in a permissionless and secure way, without bridging risk. -The ecosystem gains more value with each new parachain and user.
Value Capture:
-More people use the network, the more fees are paid. -With more people participating in parachain slot auctions, the more DOT is locked up thus reducing circulating supply.
Business Model:
Users of the network pay transaction fees, and 20% of the fee go to validators, while the remaining 80% goes to the Polkadot treasury.
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Protocol Analysis.
| Problems & Solutions | - Polkadot's primary goal is to eliminate scalability issues by enabling a common set of validators to secure multiple blockchains. - With Polkadot, users can create a custom blockchain in minutes using the Substrate framework. These chains use the XCM format, meaning that Polkadot enables cross-blockchain transfers of assets and data, note that data transfer is not common among blockchains which normally only allow for token transfers |
|---|---|
| Predecessors | Ethereum |
Investment Take
... coming soon
Tokenomics Timeline.
2023-02-08
Launch of parachains
The launch date of parachains 17.12.2021
2023-05-26
Launch of Polkadot
The launch date of the Polkadot relay chain. 26.05.2020
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Allocation and Emission.
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Resources.
Author.
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