Plasm's PLO plan at a glance: bidding strategy, listing process, lock-up airdrop

With the footsteps of 2021 approaching, Polkadot ecology seems to have officially ushered in its own highlight moment, especially the crazy rise of DOT in the recent period. It can be said that it has attracted everyone's attention to Polkadot in the most direct way.

However, the so-called rise in DOT prices is just a reflection, and the real reason is that the much-anticipated Polkadot slot auction has entered the "launching ground"...

First, on January 13, Polkadot officially announced the registration process for the Rococo V1 slot of the parachain testnet, which means that the long-awaited parachain testnet officially kicked off. Subsequently, on January 16, the Rococo team announced the overall strategy for the V1 test slot, and introduced the approximate sequence of access items. "Rococo Team Announces Overall Strategy for V1 Test Sockets"

According to the Polkadot parachain auction process shared by Polkadot founder Gavin, we have successfully reached the first step, that is, "launch Rococo v1 and wait for its stable operation". The next stage will be to launch the system parachain and "open Auctions on Kusama".

For most high-quality Polkadot ecological projects, the Polkadot parachain slot auction is also something they need to gear up to compete. At present, we have seen that Rococo V1 has deployed the first batch of parachains, and high-quality ecological projects such as Plasm and Acala have become the first batch of projects connected to the testnet, which is evident.

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Polkadot is structurally composed of relay chains, parachains and transfer bridges. Parallel chains play an important role in Polkadot’s cross-chain and expansion functions, and share Polkadot’s security. Parallel chains need to consume Polkadot’s computing resources, so the number is limited. Officials have adopted the form of PLO to allow participants to bid to become parachains , it is expected that the number of parachains participating in the auction will be around 50.

PLO actually means that the project party obtains the right to lease the slot by locking DOT to participate in the auction, after the lease period ends, the locked DOT will be automatically returned to the original account. Because slots are relatively scarce, the cost of bidding for a slot is relatively high, and the project party can passAttract DOT holders to lock DOT to help them bid, and use their own native tokens to reward those who help them bid.

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PLO is an innovative way to prosper the Polkadot ecosystem.The principle of the slot auction is to guarantee the maximum number of DOTs locked in the slot within 2 years, which means that the final bid for the slot is not necessarily a single project, but may be a combination of 1 to 4 projects.

PLO is also a way to maintain the vitality of the Polkadot ecosystem.first level title

Because of this, shortly after the birth of Plasm, we saw its plan for Polkadot's future slot auction and wrote it in the white paper. Before the Polkadot parachain was officially launched, Plasm distributed tokens by means of "Lockdrop" locking ETH, and the third Lockdrop of locking DOT is different from the previous ETH lock airdrop because It is more in line with the principle of PLO, the following is the detailed PLO plan of Plasm.

First of all, the third DOT lockup airdrop will not start until the Polkadot parachain auction! Plasm officials will invite community supporters to lock DOT tokens on their parachain slots (note: not using smart contracts or anything similar). Once the Polkadot relay chain confirms that the DOT is locked, the corresponding amount of PLM will be calculated and distributed to the lockers. This means that Plasm can issue reward tokens to DOT holders at a faster rate.

Through the above method, Plasm can gain the trust of users by becoming a parachain and provide them with the native token PLM of the Plasm platform, so this is a win-win strategy.

Of course, if there are enough users participating in the lockup, Plasm may directly obtain the right to use the Polkadot parachain through this method, and then the corresponding PLM tokens will be distributed based on the amount of DOT locked. The lock-up time of DOT is equal to the time for the Plasm network to use the parachain slot, which is currently estimated to be 2 years, and no one has the right to move or use the locked DOT during this period.

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2. The online process of the Plasm parachain

The first stage: complete all ETH lock-ups.The first locked position was probably in February last year, and the locked position exceeded 16,000 ETH, and the second locked position began at the beginning of September last year. After one month, the locked position exceeded 130,000 ETH. The warehouse exceeds 150,000 ETH (actually 154,036). And at this stage, the WASM-based contract function is compatible with Ethereum, and Plasm can be compatible with most Layer 2 solutions on the market, becoming a scalable smart contract platform.

The second stage: support community rewards and Layer2 MVP.Community Rewards are an important feature designed to motivate early Plasm Network participants and encourage developers to create some interesting content for the community to see. Community rewards enable early network contributors (i.e. DApp developers) to earn a base income (in PLM tokens) from blocks based on their performance. "Performance" is measured by the number of contract nominations received. For functions related to Layer 2 protocols, we first implement OVM, which is the unification of all Layer 2 protocols.

The third stage: Redenomination of PLM tokens.

The fourth stage: PLM tokens are launched.PLM tokens have been issued during the first two lock-up airdrops. In order to avoid harming the interests of the community, the transfer of PLM tokens has not yet been opened. It will be opened before the Kusama parachain goes live.

The fifth stage: become a parallel chain of Kusama/Poca.

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1. To fill an important function of the Polkadot ecosystem: vertical scalability

Polkadot, as the underlying infrastructure that can link all blockchains, has very strong scalability on the chain, but in Polkadot's design, it has not yet involved vertical scalability such as off-chain expansion from Layer1 to Layer2.

Since the popularity of DeFi in June 2020, Ethereum has been undergoing a protracted stress test, gradually exposing some problems of Ethereum, such as transfer congestion, high gas fee, which directly affects various types of DeFi in the ecosystem. Use of the App. However, things always have two sides. Based on the situation of Ethereum, it has promoted the rapid development of Layer 2 solutions to solve these problems. Many R&D teams or investment institutions have also shifted part of their focus to improving application scalability. Therefore, we can see news such as the well-known DeFi project Synthetix choosing to migrate its mainnet to Optimistic Ethereum, the Layer 2 solution of Ethereum.

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2. Bring more Layer 2 solutions to Polkadot

Layer 2 can effectively solve the various problems faced by Ethereum due to insufficient scalability, but different Layer 2s have their own strengths and weaknesses, and different projects are following up. For Plasm, which wants to achieve the ultimate vertical scalability on Polkadot, it will definitely not choose only one Layer 2 solution, but choose "I want them all".

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3. Help Polkadot to be perfectly compatible with Ethereum

In addition to being compatible with various Layer 2 solutions, Plasm is also compatible with Ethereum, the largest blockchain Dapp platform, at Layer 1. Plasm will be compatible with Ethereum through Solang, EVM modules and Frontier.

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4. Build a more prosperous DApps platform for Polkadot

In addition to its advantages in Layer1 and Layer2, Plasm is also very innovative in the mechanism design of DApp developers. Operator trading and Staking rewards can better motivate developers to use smart contracts on the Plasm network. So as to establish a more prosperous ecology for Polkadot.

To sum up, Plasm becomes a "triple win" brought by parachains

• For those who participate in the PLO of Plasm, they will obtain PLM at a lower cost than other PLM lock-up mining, and once Plasm becomes a Polkadot parachain, the value of PLM will be greatly improved.

• For the entire Polkadot ecosystem, Plasm can further enhance the scalability of Polkadot and provide future developers with a fast and scalable DApp development platform.

• For the Plasm project party, successful access to Polkadot can give Plasm a stronger influence in the blockchain community, attract more participants and developers, and enrich the Plasm ecosystem.

With the rapid expansion of the Polkadot parachain test network Rococo V1, we will soon usher in the official auction of the Polkadot parachain, and as a project like the Plasm network, it will definitely become an important participant in PLO, and even become an One of the most sought-after parachains, this is worth looking forward to.