Polkadot Projects That Are HOT! My TOP 3!!
Polkadot is a smart contract compatible blockchain that launched in May last year. Polkadot’s core blockchain is called the Relay Chain which uses a proof of stake consensus mechanism The Relay Chain itself does not support smart contracts and only handles a handful of transaction types, namely those related to staking Polkadot gets its smart contract functionality from the additional blockchains which plug into the Relay Chain. Up to 100 parachains or parathreads can connect to the Relay Chain
⛓Parachain Slot Auctions Explained⛓
Because of the limited space on the Relay Chain, Parachain Slot Auctions were invented to ensure these go to the most promising projects Instead of determining the winner based on their bid at the end of an auction, the winner is picked based on their bid when a random snapshot of all bids was taken during the auction These bids are made in DOT and are returned at the end of the Parachain lease period. Projects can either bid DOT themselves or have their communities loan them the DOT they need for the auction
💰Pick 1: Acala Network💰
Acala brands itself as Polkadot’s “DeFi hub” and consists of two core protocols The first is a decentralized stablecoin protocol called ‘Honza’, and the second is a tokenized staking liquidity protocol called Homa, which makes staked DOT liquid for use in other DeFi applications 💸ACA Tokenomics💸 Once released, ACA will have a maximum supply of 100 million, and 12% of this supply will be allocated to those who participate in the parachain loan offering in proportion to the DOT they’ve delegated
👩💻Pick 2: Phala Network👩💻
Phala Network is a privacy preserving decentralized database with smart contract functionality. It uses trusted execution environments or TEEs to preserve user privacy 💸PHA Tokenomics💸 PHA has an initial supply of 1 billion with an annual inflation rate of about 5% per year after the Phala main net launches. 9% of this supply will go to those participating in the Parachain Loan Offering
🗂Pick 3: Litentry 🗂
Litentry focuses on cross chain decentralized identity management. Litentry will make it possible to do things like gain gravitas in governance or build up a credit score that can be used to borrow with less collateral in a private and trustless manner
💸 LIT Tokenomics 💸
Like ACA, LIT has an initial supply of 100 million, and will have an inflation target of 5% per year starting some time in 2025. A whopping 45 million LIT are on the table for lenders in Parachain Slot Auctions
👼Common Good Parachains Explained👼
Polkadot recently announced “Common Good Parachains” which can be allocated parachain slots without a DOT bid or bond via governance. It is possible these three projects will fall under this category
📜 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.