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The Plasm parachain goes online in five stages, and the token transfer will be started before the Kusama parachain goes online.
Original title: “A list of Plasm’s PLO plans: bidding strategy, online process, lock-up airdrop”
Written by: PolkaWorld
With the pace of 2021, Polkadot ecology seems to have officially ushered in its own highlight moment, especially the crazy rise of DOT in the recent period. It can be said that Polkadot has attracted everyone’s attention in the most direct way.
However, the so-called rise in DOT prices is just a manifestation. The real reason is that the much-anticipated Boka card slot auction has embarked on the “launch site”…
First, on January 13, Polkadot officially announced the registration process of the Parachain testnet Rococo V1 slot, which means that the long-awaited parachain testnet officially kicked off. Then on January 16, the Rococo team announced the overall strategy of the V1 test slot and introduced the approximate sequence of access projects.
According to the Polkadot Parachain auction process shared by the founder of Polkadot, Gavin, we have successfully reached the first step, which is to “launch Rococo v1 and wait for its stable operation.” The next stage will be the system parachain and “open Auction on Kusama.”
For most high-quality Polkadot ecological projects, Polkadot’s parallel chain card slot auction is also something they need to compete. At present, we have seen that Rococo V1 has deployed the first batch of parachains, and high-quality ecological projects such as Plasm and Acala have become the first projects to connect to the test network, which is evident.
So, in the face of Polkadot’s official progress in slot auctions, what kind of slot auction plan is currently being developed by the ecological project? This article will explain in detail the slot auction plan of Plasm, the first project to access the Rococo V1 slot.
What is PLO
Before introducing the Plasm slot auction plan, let’s briefly explain to you what is PLO (Parachain Lease Offerings)?
Polkadot is composed of relay chain, parallel chain and transfer bridge in architecture. Parachain is an important role of Polkadot’s cross-chain and extended functions, and shares the security of Polkadot. Parachains need to consume Polkadot’s computing resources, so the number is limited. The official adopts the form of PLO to let participants bid to become parachains. , The number of parachains participating in the auction is expected to be around 50.
PLO actually means that the project party obtains the right to lease the slot by locking the DOT to participate in the auction . After the lease period ends, the locked DOT will be automatically returned to the original account. Because slots are relatively scarce, the cost of bidding for a slot is relatively high. Project parties can help them bid by attracting DOT holders to lock in DOT, and use their native tokens to reward those who help them bid.
This is equivalent to the project party loaning DOT holders’ DOT, and using their own tokens to reward DOT holders. At the same time, this also achieves the purpose of distributing native tokens. We call this auction form parallel Chain lease distribution (PLO), which is a new crowd-lending (Crowdload) method.
Crowd loans are a safer way to participate. Unlike 1CO, when you perform PLO, you do not give up your ownership of the DOT, you just lend it to others and lock it in the Polkadot relay chain, which is very safe. So if this parachain goes bankrupt, you can withdraw your DOT. Unlike most 1COs in the past, developers can take all the funds without delivering anything.
PLO is an innovative way to prosper the Polkadot ecology. The principle of the slot auction is to guarantee the maximum number of DOTs locked in the slot within 2 years. This means that the final bid for the slot is not necessarily a single item, but a combination of 1 to 4 items.
PLO is also a way to maintain Polkadot’s ecological vitality. Because the lease period of the slot is only 2 years, after the expiration of the use period, if the status of the parachain is not very good, it will be eliminated by the auction mechanism, and the project with the most resources and potential will be reselected as the parachain. Always maintain the vitality of the Polkadot ecological network.
Plasm’s PLO plan
The reason why Plasm has received such attention is also due to its creation team formulating a detailed development plan from the beginning, and taking the auction slot as an important development milestone for the team. In an article published by Plasm founder Sota last year, he wrote, “Plasm Network is a scalable smart contract on Polkadot that supports the most advanced Layer 2 solutions. From the beginning, our first task was to become the Polkadot network. Parachain.”
Because of this, not long after Plasm was born, we saw its plan for Polkadot’s future slot auction and wrote it in a white paper. Before the Polkadot parachain was officially launched, Plasm distributed the tokens through the “Lockdrop” method of locking ETH, and the third lockdrop of DOT was locked and the previous ETH locked airdrop was different, because It is more in line with the principles of PLO, the following is Plasm’s detailed PLO plan.
First of all, the third DOT lock airdrop will not start until the Polkadot parachain auction! Plasm will officially invite community supporters to lock DOT tokens on its parachain slot (note: not using smart contracts or any similar methods). Once the Polkadot relay chain confirms that the DOT is locked, the corresponding amount of PLM will be calculated and distributed to the locker. This means that Plasm can issue reward tokens to DOT holders at a faster rate.
Through the above method, Plasm can gain the trust of users by becoming a parachain and provide them with PLM, the native token of the Plasm platform, so this is a win-win strategy.
Of course, if enough users participate in the lock-up, then Plasm may directly obtain the right to use the Polkadot parachain through this method, and then the corresponding PLM tokens will be distributed based on the locked-up DOT amount. Among them, the lock-up time of the DOT is equal to the time that the Plasm network uses the Parachain slot. It is currently estimated to be 2 years, and no one has the right to move or use the locked DOT during this period.
However, it should be noted that if the auction is not successful, it will lead to the failure of the lock-up airdrop. So if the auction fails, the user’s DOT will be returned, but no PLM will be issued; if the auction is successful, the user’s DOT will be locked and the PLM will be obtained.
Plasm Parachain’s online process
The first stage: Complete all ETH lock-ups. The first lock-up was probably in February last year, with more than 16,000 ETH, and the second lock-up time was probably from the beginning of September last year. After a month, more than 130,000 ETH was locked. The warehouse has exceeded 150,000 ETH (154,036 actually). At this stage, the WASM-based contract function and the compatibility of Ethereum are completed, and Plasm is compatible with most Layer 2 solutions on the market and becomes an extensible smart contract platform.
The second stage: Support community rewards and Layer2 MVP. Community rewards are an important feature that aims to motivate early Plasm Network participants and encourage developers to create some interesting content for the community to view. Community rewards enable early network contributors (ie DApp developers) to receive basic income (in the form of PLM tokens) from the block based on their performance. “Performance” is measured based on the number of contract nominations received. For the functions related to the Layer 2 protocol, we first implement OVM, which is the unification of all Layer 2 protocols.
The third stage: Re-denomination of PLM tokens.
The fourth stage: PLM token goes online. PLM tokens have been issued during the first two lock-up airdrops. In order to avoid harming the interests of the community, the transfer of PLM tokens has not yet been opened. Will be opened before the Kusama Parachain goes online.
The fifth stage: Become a parachain of Kusama/Poca.
At present, Plasm has successfully connected to the Polkadot test network Rococo V1, which will fully test the parachain and leave its team sufficient time to prepare for the Polkadot slot auction.
After Plasm becomes a parachain, how will it help the Polkadot ecology?
Fill the important function of Polkadot ecology: vertical scalability
Polkadot, as the underlying infrastructure that can link all blockchains, has very strong scalability on the chain. However, in Polkadot’s design, the vertical scalability of the off-chain expansion from Layer 1 to Layer 2 has not been involved.
Since the popularity of DeFi in June 2020, Ethereum has been undergoing a protracted stress test, gradually exposing some of Ethereum’s problems, transfer congestion, and high gas fees, which directly affect various types of DeFi in the ecology. Application usage. However, things always have two sides. Based on the situation of Ethereum, it promotes the rapid development of Layer 2 solutions to solve these problems. Many R&D teams or investment institutions have also shifted part of their focus to improving application scalability. Therefore, we can see news such as that the well-known DeFi project Synthetix chose to migrate the mainnet to the Ethereum Layer 2 solution Optimistic Ethereum.
Therefore, for blockchains that want to host many DApps in the future, Layer 2 is a very important expansion solution, and Plasm is just to fill the needs of Polkadot’s ecology. It has Layer 1 to Layer 2 and has vertical scalability under the chain. The chain allows DApp developers to build applications without worrying about scalability.
Bring more Layer 2 solutions to Polkadot
Layer2 can effectively solve the various problems faced by Ethereum due to insufficient scalability, but different Layer2 have their own merits, and different projects are following up. For Plasm who wants to achieve the ultimate vertical scalability on Polkadot, it will definitely not only choose a Layer 2 solution, but choose “I want it all”.
Plasm supports OVM (Optimistic Virtual Machine) on Layer 2, which is a virtual machine that supports all Layer 2 protocols. Based on this, Plasm can be compatible with all Layer 2 solutions on the market, including the popular ones that have been liked by V God ZK Rollups and Optmistic Rollups. This also means that projects that support different Layer 2 solutions can also be compatible with Plasm and bring more Layer 2 solutions to Polkadot.
Help Polkadot to be perfectly compatible with Ethereum
In addition to compatibility with various Layer 2 solutions, Plasm is also compatible with the largest blockchain Dapp platform Ethereum in Layer 1. Plasm will achieve compatibility with Ethereum through Solang, EVM modules and Frontier.
At the same time Plasm is still developing the RPC module. 95% of Ethereum’s development tools and libraries can be compatible with Plasm through the RPC module, thereby opening up the connection channel between Ethereum and Polkadot.
Build a more prosperous DApps platform for Polkadot
In addition to the advantages of Plasm on Layer 1 and Layer 2, it is also very innovative in the mechanism design of DApp developers. Operator trading and staking reward can better motivate developers to use the smart contracts of the Plasm network. So as to build a more prosperous ecology for Polkadot.
To sum up, Plasm has become a “three wins” brought by parachain
For those who participate in Plasm’s PLO, they will get PLM at a lower cost than other PLM lock-up and mining, and once Plasm becomes a Polkadot parachain, the value of PLM will be greatly improved.
For the entire Polkadot ecosystem, Plasm can further enhance Polkadot’s scalability and provide future developers with a fast and scalable DApp development platform.
For the Plasm project party, successful access to Polkadot can allow Plasm to have a stronger influence in the blockchain community, attract more participants and developers, and enrich the Plasm ecosystem.
With the rapid extension of the Polkadot parachain testnet Rococo V1, we will soon usher in the official auction of the Polkadot parachain. As a project like the Plasm network, it will definitely become an important participant in PLO, and even everyone One of the most sought after parachains, this is worth looking forward to!