Nov 1, 2021
Litentry Crowdloan Plan for Polkadot Parachain Auction
Litentry Polkadot Crowdloan
As the long-expected Polkadot auction is near, Litentry is thrilled to announce our crowdloan strategies to the community to achieve board participation. This crowdloan is a strategic step for the Litentry Network, as our parachain will be connected to the Polkadot relay chain to gain shared security and interoperability. Our aggregated identity protocol will gain great advantage in becoming the standard in DID and the fundamental core in Web3.
Litentry is expected to participate in the Polkadot auction from the first slot and continue to bid for all five slots until we secure a slot. Compared to projects that haven’t issued native tokens, Litentry will be using 20% of the total supply of LIT to reward supporters who help us gain a superior position in the auctions.
Basic rewards
- Crowdloan start date: 5 November 2021
- Slot leasing period (Parachain duration): 96 weeks
- Target slot: #1 — #5
- Crowdloan Hardcap: 8,000,000 DOT
- Token Reward Pool: 20,000,000 LIT (20% of total supply)
- Crowdloan campaign deadline: 17 December 2021
- Minimum contribution: 5 DOT
- For each 5 DOT locked, a participant will be rewarded with a minimum of 12.5 LIT. The final reward will be calculated as a % of each participant’s contribution to the crowdloan pool. (Your DOT Contribution/Total DOT Contributions) * 20 Million LIT
- Reward distribution: LIT rewards will be distributed linearly in each block. The distribution will start once the Litentry parachain runs on Polkadot relay chain and will end when the parachain slot expires (after 96 weeks).
Early Bird Bonus (Up to +10%)
Applies to contributions through polkadot.js and Litentry Crowdloan WebApp
- 10% additional bonus is valid until 18th November 2021
- 5% additional bonus is valid between 19th and 25th November 2021
DID related Bonus (Up to +10%)
We reserve our crowdloan contributors with an additional 2M LIT bonus pool as rewards for completing identity-related tasks, which is another 10% additional auction bonus reward. The tasks will be gradually announced. The design for the identity-related tasks is we want users to realize that the identity is important and actually profitable. In the future, these tasks will be consolidated into Litentry dApp, and empower the aggregated identity.
Failure compensation for DOTs contributor in Crowdloan:
- If Litentry doesn’t win a slot in batch 1 auctions, Litentry will compensate the previous batch contributors in the new crowdloan campaign with extra LIT until it wins a slot in the auctions
- The compensate ratio is DOT : LIT = 1 : 0.12
- The expected compensation APY is 13%(Crowdloan periods about 5 weeks)
- If a slot is successfully acquired, there will be no compensation anymore
- The compensation will be distributed on Polkadot until Litentry wins a parachain slot
Litentry Token Economic
LIT token is the native cryptocurrency of the Litentry network and is issued by the Litentry Foundation. Litentry tokens LIT would be the driving force in the circulation in the DID ecosystem. LIT is currently issued as ERC-20 token and BEP-20 token. The Binance project research about Litentry describes the token economic and allocation.
After Litentry launches a parachain on the Polkadot network, the Litentry parachain will have LIT natively, alongside the rest in the Ethereum blockchain, which means partial LIT token migration will be executed. We have to claim here Litentry token economic:
- Litentry’s economic model and total supply are unchanged (100,000,000 LIT).
- Litentry plans to burn a portion of ERC-20 LIT and issue the same number of native LIT on the Litentry parachain to keep the total supply unchanged.
- Litentry will launch a token bridge between ERC-20 LIT and native LIT, ERC-20 LIT holders can decide whether to migrate tokens to Litentry parachain or not.
- The migration ratios shall be ERC-20 LIT : native LIT = 1:1.
Litentry Crowdloan community call Q&A
Interested in understanding more about our Crowdloan strategy or simply want to meet our team?
Join our community call on Crowdcast at 12:00 pm UTC, Nov 2.
Register now: https://www.crowdcast.io/e/litentry-community-call.
About Litentry
Litentry is a Decentralized Identity Aggregation protocol across multiple networks, it features a DID indexing mechanism and a Substrate-based credit computation network. The protocol provides a decentralized, interoperable identity aggregation service that mitigates the difficulty of resolving agnostic DID mechanisms. Litentry provides a secure vehicle through which users manage their identities and dApps obtain the real-time credit/reputation of an identity owner across different blockchains.
