This website uses cookies to ensure you get the best experience on our website

Polkadot 'Crowd Loan Lease Period', what is it?

By now, you have learned that Polkadot offers much more than just scalability and interoperability. While it is still a relatively new project, Gavin Wood and the core team are also introducing a new way of funding projects. These projects actively bid to receive the most votes and become a Parachain.

To do this, the project must remain attractive to investors who instead would have to lock their DOT and vote. For every DOT locked—and there is a minimum—the project could offer bonuses, token airdrops, and more. The more there are freebies, the higher the chances that the project will receive votes--becoming a Parachain.

Now, the difference between ICOs, IEO, and other token generating events is that every DOT sent to a crowd-loan will be 'leased.' That is, locked for at most 24 months. The Parachain lease begins immediately after the slot is won and would serve to bootstrap project development. 

All DOT contributed as locked in the Relay Chain and won't be under the control of the project developers. DOT will be locked until the end of the lease, which would vary from project to project. Any airdrop, bonus, or distribution program promised by the project will be done during the lease period.

For more interesting tips and facts visit our Education Centre.

Have Questions? 

We're available 24/7 to help you. You can email us, or send us a message on WhatsApp, Telegram or Messenger!

Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.

This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.

CryptoAltum does not accept any clients under the age of 18. 
  • Copyright Techcraft Ltd (CryptoAltum) 2020