Polkadot: Can DOT 10x in 2021?? DEEP DIVE!!
Polkadot is essentially an ecosystem of blockchains called “Parachains” that connect to a core blockchain called the Relay Chain. Polkadot uses a hybrid delegated proof of stake consensus mechanism called nominated proof of stake.
The supply of QUOTE ‘old DOT’ was multiplied by 100, resulting in the 1 billion supply of the QUOTE ‘new DOT’ that you currently see making gains in the crypto leaderboards.
The Treasury receives its funds from four sources: A portion of network fees. A portion of any slashed stakes from misbehaving Validators or Collators. A portion of network inflation. And a portion of fees paid by parathreads, which you can think of as being pay-as-you-go parachain blockchains. Anyone can propose an initiative they want the Polkadot Treasury to fund and must put down 5% of the total amount of DOT they think the project will cost. This 5% bond must be a minimum of at least 100 DOT.
👀Initial Parachain Offering👀
Shortly after being announced, Polkadot seems to have renamed its new crowdfunding mechanism from Initial Parachain Offering to Parachain Loan Offering. The way it works is that DOT holders will be able to loan their coins to the projects building on Polkadot that they believe should get a Parachain slot. The projects vying for a slot can further incentivize DOT holders to loan them the DOT they need by promising to airdrop some of their tokens if they get the slot, hence the term Parachain Loan *Offering*. 🖥Thousand Validator Program🖥 This initiative had previously been tried on Polkadot’s de facto test-net, Kusama, with remarkable success. The program increased the number of validators on Kusama from 25 to 700 in a matter of weeks. If your application is successful, the Web3 foundation will nominate you to be a validator; they will delegate their DOT to you to make sure you have enough staked DOT.
🔗PolkaBTC & Token Standard🔗
Interlay is building a trustless bridge between Bitcoin and Polkadot. This trustless bridge will be a wrapping protocol similar to Ren, which allows users to lock up BTC to mint an equivalent amount of renBTC, which lives as an ERC-20 token on Ethereum. Another Polkadot project called KILT is building a token standard on Polkadot that will function in the same way as the ERC-20 token standard on Ethereum. This will make it easy for other Polkadot projects to mint tokens of their own using KILT’s token standard.
In April 2020, the Crypto Ratings Council gave Polkadot’s DOT, Tron’s TRX, and Nervos Network’s CKB a securities score of 4.75 out of 5. The fact that the Polkadot main net was not live when the Crypto Ratings Council made their assessment should reduce the risk of DOT being deemed a security by the SEC
📈DOT Potential 2021📉
A 5-10x move from DOT’s current price is a reasonable expectation for this bull market. The 640 million DOT currently being staked have a 1 month unlock period. When the price of DOT really starts to rise, the chances of it going parabolic are incredibly high due to the short-term shortage of DOT on the open market
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.