Introduction

The world of decentralized finance (DeFi) and blockchain technology is rapidly evolving with innovative projects developing to address a need. However, the traditional fundraising models used by these projects are often limited in their accessibility and fairness. This is where Polkastarter comes in.

As a decentralized fundraising platform built on the Polkadot blockchain, Polkastarter offers a fair, transparent, and accessible model for launching new blockchain projects. Thus, leveraging the power of blockchain technology and decentralization, Polkastarter has become a promising platform for launching innovative projects and connecting investors with the future of finance.

What is Polkastarter? The Decentralized Cross-Chain Fundraising Platform

Source: Polkastarter

Polkastarter is a decentralized fundraising platform that allows blockchain and cryptocurrency projects to raise funds through a process known as Initial DEX Offering (IDO). IDOs on Polkastarter are available to anyone with an internet connection and a cryptocurrency wallet; they are decentralized and offer more opportunities for community participation than traditional IPOs, which are centralized and involve more regulatory requirements and intermediaries.

Polkastarter is built on the Polkadot ecosystem, which means that it benefits from Polkadot’s interoperability features, allowing for seamless integration with other blockchain networks, and making it easier for projects to connect with investors and users on different blockchains. Polkastarter’s native token is called POLS, and it is used to access the platform’s features and participate in IDOs.

Why Polkastarter is Built on Polkadot

Polkastarter was built on Polkadot to take advantage of the interoperability and scalability benefits of the Polkadot network. Polkadot allows for cross-chain communication between different blockchain networks, making it easier to integrate with other DeFi protocols and expand its reach.

Further, the distinctive design of Polkadot’s network offers an optimized and secure framework for decentralized applications. This allows Polkastarter to provide its users with a smooth and user-friendly platform, making it more accessible to a wider range of individuals.

History of Polkastarter

In 2020, Daniel Stockhaus and Tiago Martins established a platform aimed at decentralized fundraising for blockchain projects. The team raised $875,000 for product development in September 2020 and launched its minimum viable product (MVP) on the Ethereum network in the fourth quarter of the same year. The platform went live in December 2020, allowing projects to raise funds through decentralized crowdfunding with lower initial expenses compared to launching a project on a centralized exchange (CEX).

In the second quarter of 2021, Polkastarter helped 23 projects raise $4.6 million with over 18,000 participants across the projects. The platform’s popularity continued to grow, leading to its expansion into other blockchain networks such as Polygon. Polkastarter’s cross-chain capabilities, powered by the Polkadot ecosystem, allow for faster and cheaper transactions while staying connected to other networks for liquidity.

Polkastarter has become a popular decentralized fundraising platform with a growing user base and expanding ecosystem, enabling projects to access funding from a global audience through a trusted and transparent platform.

Polkastarter Fixed Swap Auction Model: How it Works

Source: Polkerstarter.com - Launch with Polkerstarter

Polkastarter utilizes a fixed swap auction model, which allows investors to purchase project tokens at a fixed price during the fundraising period. This approach helps to reduce volatility and provides greater certainty for investors during the fundraising process. Projects can also offer different tiers of pricing during the auction, allowing investors to purchase tokens at different prices depending on the timing of their investment.

To participate in a project’s fundraising round, investors must hold Polkastarter’s native token, POLS. This token is used to access the platform’s whitelist and provides investors with a greater chance of securing an allocation during the fundraising round. POLS is also used to pay transaction fees on the platform, providing further utility and value for the token.

Projects launching on Polkastarter must go through a rigorous review and approval process, which includes due diligence by the platform’s analysts and council. This process helps to ensure that projects meet the platform’s standards for quality and safety, and are suitable for launching on the platform. Projects must also undergo a team interview and work with Polkastarter’s experts to prepare for the launch.

Once a project is approved and ready for launch, it enters the fundraising phase, where investors can purchase project tokens at a fixed price using POLS. The fundraising period typically includes a whitelist phase, where early investors can secure an allocation, and a public sale phase, where tokens are available to the general public.

Polkastarter Ecosystem

The Polkastarter ecosystem is built on top of the Polkadot network, a decentralized network that provides interoperability between different blockchains. Polkastarter utilizes Polkadot’s interoperability features to enable cross-chain swaps and facilitate seamless transactions across different blockchains.

The Polkastarter ecosystem comprises different stakeholders, including project teams, investors, liquidity providers, and community members. Project teams use the platform to launch their projects and conduct decentralized fundraising campaigns, while investors can participate in these campaigns and support promising blockchain projects.

Liquidity providers play a critical role in the Polkastarter ecosystem by providing liquidity to the platform’s liquidity pools. These pools enable cross-chain swaps and allow users to exchange different cryptocurrencies seamlessly. In exchange for providing liquidity, liquidity providers earn rewards in the form of trading fees and other incentives.

Community members are also an essential part of the Polkastarter ecosystem. They participate in governance and decision-making processes through the platform’s native governance token, POLS. POLS holders possess voting privileges and can suggest and vote on modifications to the platform’s protocols, features, and policies.

Roadmap

Polkastarter has had an impressive journey since its inception, and the team is gearing up to take it to the next level. The focus is on enhancing the user experience, increasing the number of projects that can be launched, and improving overall liquidity.

The first goal is to improve the platform’s user experience by making it more intuitive and user-friendly. This involves developing a sleeker and more accessible user interface, improving security measures, and introducing new token standards that can be used on the platform.

The second goal is to expand the range of supported networks and protocols, thereby increasing the number of projects that can be launched on the platform. This involves introducing new features and tools that will make it easier for developers to launch new projects. The team is working on integrating Polkadot ecosystem-based cross-chain swaps to allow the launch of projects on multiple blockchains.

Finally, the team plans to increase the overall liquidity of the Polkastarter market. This includes improving liquidity pools, offering incentives to stakers, and increasing the number of exchanges and partners involved in the Polkastarter ecosystem. This will ensure that the platform has enough liquidity to support the growing number of projects and users.

Partnerships

Source: Polkerstarter.com - Launch with Polkerstarter

Polkastarter has established strategic partnerships with leading blockchain projects to offer its users an inclusive and efficient alternative to traditional centralized exchanges. The partnerships allow Polkastarter to integrate various technologies and services into its platform, expanding its ecosystem and enhancing the user experience. Partners such as Chainlink and Ocean Protocol provide secure and reliable data feeds for blockchain applications and enable the listing of data-focused projects on the platform.

Further, Polkastarter has partnered with various networks to provide support for new projects. The alumni network works like an accelerator, with over 100 projects launched. They also ensure projects have the right go-to-market and scaling partners. Polkastarter has relationships with industry-leading identity verification providers to help with KYC. They offer mentorship to projects ranging from tech and tokenomics to branding and marketing advisors. Additionally, they have partnered with exchanges to expand liquidity opportunities.

Other key partnerships include Mantra DAO, which offers financial services to underserved populations, and Orion Protocol, which provides access to deeper liquidity pools and lower slippage during IDOs. Moonbeam and Paid Network are also part of Polkastarter’s strategic partnerships, allowing interoperability with multiple blockchains and the development of a decentralized legal framework.

How Polkastarter Addresses Challenges in DeFi

Polkastarter is a decentralized crowdfunding platform that solves the liquidity issue faced by new projects launching their tokens. Traditional fundraising methods require new projects to provide liquidity on both the asset for sale and a quote currency, which can be a significant barrier to entry for new projects. Polkastarter provides a liquidity pool accessible to all projects launching on the platform, making it easier for new projects to get started.

Polkastarter also addresses the scalability and high transaction fee issues associated with decentralized exchanges. The platform supports multiple blockchains, providing fast, secure, and low-cost transactions. Polkastarter has a user-friendly interface and supports multi-chain functionality, allowing projects to choose which blockchain they want to raise funds on. This provides greater flexibility and access to a broader investor base. Polkastarter is designed to be intuitive and easy to use, with a simple token purchase process for investors.

Benefits of Using Polkastarter

There are several benefits to using Polkastarter and they include:

• Access to a wider investor base: With multi-chain support, Polkastarter enables projects to reach investors on different blockchain networks, expanding the potential investor base.
• Advanced token swap features: Polkastarter allows for advanced token swap features, such as limit orders and stop-loss orders, providing investors with greater control over their investments.
• Integration with popular wallets: The platform integrates with popular wallets such as MetaMask and WalletConnect, making it easy for investors to participate in token sales.
• A supportive community: Polkastarter has a strong and supportive community, with active participation from developers and investors alike. This creates a positive environment for new projects launching on the platform.
• Decentralized governance: Polkastarter is built on a decentralized governance model, enabling token holders to vote on platform upgrades and changes. This ensures that the platform evolves in a way that benefits the community as a whole.

Risks of Using Polkastarter

Despite the great benefits of Polkastarter, there exist specific risks with using the platform, such as the potential of investing in projects that contain faulty code or security vulnerabilities, causing financial losses. Despite its due diligence process, some issues may still go undetected.

Polkastarter faces the risk of fraudulent projects or scams being listed on the platform, despite strict measures taken through a rigorous application process and ongoing monitoring. This may leave room for bad actors to exploit the platform.

Moreover, investors should be aware of the potential impact of market volatility and price fluctuations on the value of tokens purchased through Polkastarter. Although this risk is not exclusive to Polkastarter, investors need to acknowledge the inherent uncertainty that comes with investing in the cryptocurrency market.

What is POLS?

POLS is the native utility token of Polkastarter. It is an ERC-20 token that provides several benefits to its holders, including access to discounted fees and voting rights in governance.

POLS tokens are used to pay transaction fees on the Polkastarter platform, such as swap fees and gas fees. By holding POLS tokens, users can access discounted transaction fees, providing a cost-effective way to participate in the platform’s token sales. Additionally, POLS tokens can be staked to earn rewards in the form of more POLS tokens.

Tokenomics

Source: Polkastarter Documentation

POLS has a total supply of 100 million tokens, and no additional inflation or minting will take place in the future. Of the total supply, 55% is allocated for community distribution, 25% for development and team members, 10% for partnerships and ecosystem building, 5% for advisors and early backers, and 5% for liquidity and market making.

This allocation ensures a significant portion of tokens are in the hands of the community while also providing resources for development and partnerships to grow the platform. The 5% allocation for liquidity and market making also helps to ensure the stability and liquidity of the token in the market. Overall, the token allocation and limited supply of POLS create a balanced and sustainable ecosystem for the Polkastarter platform.

A percentage of transaction fees from Initial DEX Offerings (IDOs) on Polkastarter is used to buy back and burn POLS tokens, reducing the overall supply and increasing its scarcity. The exact percentage of transaction fees used for token burning varies and is subject to change. The all-time high for POLS was $7.51, reached on February 16, 2021, while the all-time low was $0.001476, recorded on September 30, 2020.

Governance

POLS token holders can vote on proposals that can shape the future of the Polkastarter platform. For example, POLS token holders can vote on proposals related to new feature development, changes to platform fees, updates to the user interface, and other aspects of the platform’s operation. This gives token holders a say in the direction and growth of the platform and allows them to have a more active role in its development.

The governance function is an important part of the Polkastarter ecosystem, as it allows the community to have a voice in the decision-making process. This enables the platform to remain adaptive to the preferences and requirements of its users, fostering continuous growth and development.

The Importance of investing in Polkastarter (POLS)

The POLS token offers various utilities and benefits to its holders. One of these benefits is staking, which allows users to increase their POLS Power and gain access to IDO applications. POLS Power is calculated based on a user’s eligible POLS balance across the platform, including both the tokens held in their wallet and the tokens staked. By staking their POLS, users cannot only increase their POLS Power but also gain immediate access to all open and future IDO applications. This feature makes Staking POLS a great way to increase one’s chances of participating in popular IDO sales and potentially earning attractive returns.

In essence, the POLS token offers a range of benefits to holders, including staking for pool access, increased POLS Power, and governance participation, making it a valuable asset for those interested in the Polkastarter platform.

Is Polkastarter (POLS) a good Investment?

Polkastarter appears to be a promising investment opportunity for those interested in DeFi and the growth of the cryptocurrency market. With its unique platform for IDOs and NFT sales, as well as its focus on community governance and transparency, Polkastarter has the potential for long-term success.

Further, POLS possesses a robust token utility that enables staking and governance engagement. Its limited supply and regular token burning contribute to its potential for growth and increase in value over time. However, cryptocurrencies are notorious for being highly volatile with sharp price fluctuations. So, always research the project, the team, and whether it’s a viable option to invest in. Also, do not invest what you will not be comfortable losing.

How to Own POLS

To own POLS, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy POLS.

Conclusion

Polkastarter is a unique and innovative platform that has brought a new level of decentralized fundraising and project funding to the cryptocurrency world. With its focus on cross-chain interoperability and community governance, Polkastarter has positioned itself as a leader in the DeFi space.

The POLS token plays a crucial role in the Polkastarter ecosystem, providing users with access to exclusive pools and IDOs, as well as voting rights for platform governance. With its limited supply and deflationary mechanism, the token has the potential for long-term growth as the platform continues to gain popularity and adoption. Overall, Polkastarter and its native POLS token present an intriguing opportunity for investors interested in the DeFi space.