Polkadot investment must-read: DOT official comprehensive encyclopedia
Original reference:https://polkadot.network/dot-token/
What is the definition of DOT
DOT will be a token created by Polkadot, native to Polkadot, in order to perform key functions of the platform, as described below.
Governance:
Network governance, operations, interoperability, bonding.
Governance:
Interoperability:
Operation:
Game theory incentivizes token holders to act in an honest manner. Good participants are rewarded through this mechanism, while bad participants lose their stake in the network. This ensures that the network remains secure.
Interoperability:
Binding:
Binding:
Add new parachains by binding tokens. Obsolete or useless parachains can be removed by deleting bonded tokens. This is a form of Proof of Stake.
Allocation of DOTs
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.
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What is the function of DOT in Polkadot?
DOT will play four key functions in Polkadot, namely (i) providing governance for the network, (ii) running the network, (iii) creating parachains by binding DOTs, and (iv) passing fees for messages across parachains.
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 base 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 DOT (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 the market mechanism, users will pay for sending their messages to other state machines on the Polkadot network.
What rights will DOT give its holders?
i. Ability to act as a validator node, collator, nominator or fisherman;
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. The ability to participate in the decision-making process regarding Polkadot's global upgrades and/or changes.
Is DOT an ERC20 token?
How will the share of the second token sale be distributed?
How will the share of the second token sale be distributed?
Of the remaining 5 million DOTs, 2 million DOTs are intended to be reserved for one or more future sales, or otherwise distributed. This 20% allocation is for further distribution as outlined in the initial sale and in the Polkadot short white paper.
How will the total amount of DOT be distributed?
10 million DOTs are expected to be part of the Polkadot genesis block. In the fall of 2017, 5 million DOTs were sold.
Of the remaining 5 million DOTs in the Polkadot genesis block, 2 million DOTs are intended to be sold or otherwise distributed prior to genesis. The remaining 3,000,000 DOTs will be allocated to the Web3 Foundation, to be kept or distributed at its sole discretion.
Is DOT a transferable ERC20 type token?
No, the contract under 0xb59f67A8BfF5d8Cd03f6AC17265c550Ed8F33907 only records the allocation of DOTs and is not transferable. Actual transferable DOTs will be offered when the network is generated.
When can I receive DOT?
The initial development cycle of Polkadot is expected to be at least two years after the completion of the first general sale. Within this estimated time period, a research phase is expected to culminate in a set of technical proofs-of-concept, a series of prototypes with a final formal protocol specification, deployment of a testnet, a fully fledged implementation, an external review process and bounties program. To the extent these phases are successful, the Web3 Foundation will continue to make the Polkadot genesis block available for deployment so that participants in the first general sale can access their allocation of DOT.
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 DOTs limited?
The Polkadot genesis block is expected to 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 percentage (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.
DOT additional issuance model:https://wiki.polkadot.network/docs/zh-CN/learn-staking
Will DOT be more valuable in the future?
As mentioned above, DOTs are designed to fulfill certain functions within Polkadot and do not act as currency themselves. The Web3 Foundation is not making any comment on the current or future value of DOTs 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 no 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 implement DOT transactions, 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 does not intend to provide, develop or support any mechanism for exchanging DOTs for fiat currency base value. On this basis, the 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.
