Polkadot investment must-read: DOT official comprehensive encyclopedia

What is the definition of DOT

What is the definition of DOT

DOT tokens will not be available until the mainnet is launched. At the same time, you can get a testnet to interact with the testnet. Navigate to the testnet and click "Create Account". After saving your password, post your public address to our channel for a free beta testDOT.

4 uses of DOT token

Distribution of DOT

DOT tokens will not be available until the mainnet is launched. At the same time, you can get a testnet to interact with the testnet. Navigate to the testnet and click "Create Account". After saving your password, post your public address to our channel for a free beta testDOT.

first level title

What is the function of DOT in Polkadot?

What is the function of DOT in Polkadot?

How will the share of the second token sale be distributed?

i. The first function of DOT is to empower holders to complete governance control over the platform. This governance function includes determining the network's fees, auction dynamics and a schedule for adding parachains as well as special events such as upgrades and fixes to the Polkadot platform. These features are not officially granted to DOT holders, but Polkadot's underlying code will enable DOT holders to participate in governance.

ii. The second function of DOT is to facilitate the consensus mechanism underpinning Polkadot. In order for the platform to function and allow efficient transactions across parachains, Polkadot will rely on DOT holders to play an active role. Participants will stake their DOTs (known as "staking" or "bonding") to perform these functions, which discourages malicious participation in the network. The DOT required to participate in the network will vary depending on the activity undertaken, the duration of DOT staked, and the total number of DOT staked.

iii. The third function of DOT is the ability to add new parachains by bundling DOTs (called "bonding"). Obsolete or useless parachains can be removed by deleting bonded tokens.

iv. The fourth function of DOT is to pay fees to validator nodes to transmit cross-chain messages. According to a market mechanism, users will be paid for sending their messages to other state machines on the Polkadot network.

What rights will DOT give its holders?

Holders of DOT will have certain functions within the Polkadot platform, including:

i. Ability to act as a validator node, collator, nominator or fisherman;

ii. Ability to participate in Polkadot governance;

iii. The ability to participate in the decision-making process regarding the addition or removal of parachains;

iv. Ability to participate in the decision-making process regarding Polkadot global upgrades and/or changes.

Is DOT an ERC20 token?

No, DOT is the native token of the Polkadot platform.

How will the share of the second token sale be distributed?

How will the total amount of DOT be distributed?

How will the total amount of DOT be distributed?

10 million DOTs are expected to be distributed as part of the Polkadot genesis block. In the fall of 2017, 5 million DOTs were sold.

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Is DOT a transferable ERC20 type token?

No, the contract under 0xb59f67A8BfF5d8Cd03f6AC17265c550Ed8F33907 only records the distribution of DOT and is not transferable. Actual transferable DOTs will be available at network generation.

When can I receive DOT?

Is the supply of DOT limited?

How do I access my DOTs after allocation?

After the Polkadot genesis block is deployed, DOT owners will be able to access their DOTs using the private keys corresponding to the Ethereum addresses used to contribute in the DOT sale.

Is the supply of DOT limited?

It is expected that the Polkadot genesis block will contain 10 million DOTs. The total supply of DOTs will not be fixed or limited by a predetermined cap over time. DOT is subject to a currently as yet undetermined inflation model, which envisages that the supply of DOT will increase each year, and may be designed to incentivize participants such that a sufficient proportion (yet to be determined, but perhaps 50%) of all DOT is any The shares issued at that time will be mortgaged to support and consolidate Polkadot's equity consensus mechanism.

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Will DOT become another virtual currency?

As mentioned above, DOTs are designed to fulfill certain functions within Polkadot and do not act as currency themselves. Web3 Foundation is not making any comment on the current or future value of DOT at this stage.

DOT basically has no liquidity in the design structure. With the deployment of Polkadot's genesis block, it is expected that most of all DOTs issued at any point in time will be staked to support Polkadot's proof-of-stake consensus mechanism (NPoS), so there will be a lack of liquidity and will not be transferable or trade.

Can DOT be traded?

For those DOTs that do not exist to support and operate Polkadot, the Web3 Foundation does not intend to provide, develop or support any infrastructure to enable transactions of DOTs, and the possibility of any third party providing such services. The infrastructure will be completely out of the control of the Web3 Foundation.

Will DOT become another virtual currency?

As stated in the previous sections, the Web3 Foundation does not intend to use DOT as a virtual currency. The Web3 Foundation has no intention of providing, developing or supporting any mechanism for exchanging DOTs for fiat currency base value. On this basis, Web3 Foundation believes that DOT is not suitable for use as a form of virtual currency. Nonetheless, DOT may still be considered a virtual currency under the laws of certain jurisdictions. The Web3 Foundation has not commented on what classification DOT holders may need to fall into, and any potential holders seeking further information on the potential implications of holding virtual currency should seek independent legal advice.