Polkadex IDO Platform
The crypto industry is growing both in the number of new blockchain projects and new users, who want to invest in tokens early on and make the most out of the project's growth. This led to a real boom in demand for services of Initial DEX Offering (IDO) platforms.
Participating in the IDO requires a lot of time, patience and manual work both from the project team and investors.
The issues with the current state of token distribution platforms are:
IDO platforms are more centralized than decentralized, meaning that teams have to go through manual lottery selection.
Whitelisting and executing smart contracts to distribute tokens is very expensive on the Ethereum network.
Investors who want to participate in IDOs on various platforms have to hold a large number of native tokens. Hence, IDOs become less and less attainable for an average retail investor.
Polkadex IDO platform will provide whitelisting, distributing tokens and vesting done fully on the blockchain. We aim to create an easy to use and transparent platform for blockchain project teams and users.
Polkadex IDO Platform will provide the following opportunities for blockchain project teams:
Polkadex IDO is a one-stop-shop efficient solution for all the activities from conducting the fundraise to listing tokens on Polkadex exchange fully on-chain. IDO platform will be the easiest way to deploy tokens and distribute them among IDO participants. Teams will receive an end-to-end product that allows them to create tokens, bridge to other networks, list in the Orderbook, conduct IDOs and also finally migrate to their own blockchains later on in the project’s development.
Cost-saving on smart contract audits. It will be plug-and-play with configurable parameters like token support, vesting schedule, etc.
Inexpensive smart contract setup.
Opportunities to mint and burn ERC-20 compatible tokens.
No prohibitive fees for the listing of projects’ tokens on the Polkadex main exchange since it is handled by on-chain governance.
Retail investors who want to participate in IDOs launched on the Polkadex on-chain platform will enjoy the following features:
No gas wars and astronomic gas fees that users have to pay to claim their tokens. Polkadex will use on-chain randomness that is free and fair for all.
Affordable fees to participate in the IDOs. Polkadex removes the entry barrier for participants who generally need to hold large amounts of the IDO platform’s native tokens to try their luck in IDOs. Polkadex will rather have a one-time platform fee paid to the on-chain treasury or burned every 6 months so that users can participate in projects of their choosing. Currently, the number of tokens needed for participation in Polkadex IDOs is not finalized. However, we are coming up with a dynamic algorithm that links the number of tokens needed to automatically burn the tokens that exceed 20M inflation. The goal is to keep inclusivity even when the token price increases, unlike on other platforms. We will update this section when more information is available.
Polkadex will use on-chain randomness that is free and fair for all to pick the lottery winners. As projects conducting IDOs are trying to distribute a limited number of tokens, the allocation driven by the on-chain algorithm will be lottery-based. This helps to eliminate typical complaints on traditional IDO platforms favouring certain investors over others.
Selection of tokens eligible for the following exchange listing will be done through on-chain governance, too. Tokens listed on the platform will go through a careful curation process beforehand. Initially, Polkadex will allow listing for ERC-20 tokens compatible with Ethereum and native Substrate based tokens compatible with the Polkadot ecosystem. As the Polkadex ecosystem develops, our on-chain governance will fund teams building bridges to other blockchains and allow listings for their tokens. Possibilities are nearly limitless here.