POLYS Use Cases and Utilities by PolyStarter
Polystarter introduced the use cases and utilities of Polystarter’s native token $POLYS.
Polystarter is the Native Decentralized Launchpad for projects being developed on the Polygon network.
Raising capital is a critical step for the team behind any project in taking a vision all the way from the ideation step to the final product release. The new class of entrepreneurs who are driving the growth of blockchain technology are relying more and more on decentralized techniques of fundraising for fuelling the growth and development of their product.
Polystarter’s vision is to connect investors and project founders who are building new and innovative applications on the Polygon network. Polystarter will provide comprehensive support through decentralized fundraising, accelerating the deployment of a whole new range of world-class DApps on Polygon.
At the core of Polystarter’s decentralized ecosystem is the POLYS token. The purpose of the POLYS token is to empower holders so that not only do they enjoy the exciting features that the Polystarter platform offers but also play an active role in the governance and decision-making process that will drive the future growth of Polystarter.
The main utilities of the POLYS token are detailed below.
1. Staking for Pool Access
POLYS is the ticket to earn PolyPower and participate in decentralized fundraising of Polygon projects in the Polystarter ecosystem.
Many of the IDO platforms in operation today have an allocation system where the amount of funds a user is allowed to invest depends directly on the amount of the platform’s native token that the user holds. This skews the playing field heavily towards those users who hold a greater amount of tokens while leaving little to no funds for small investors.
This is the classical “The Rich Get Richer” dilemma.
Polystarter has implemented a tier-based lottery system in order to level out the playing field. Each user is assigned one of 4 possible lottery tiers, and the probability of winning an IDO allocation is greater for higher lottery tiers.
The lottery tier assigned to a user depends on the amount of PolyPower the user possesses, which can be earned by staking POLYS on Polystarter.
Now, the amount of PolyPower depends not only on the amount of POLYS staked but also on the duration of staking. In other words, greater the involvement in the platform, higher the lottery tier, and hence greater the chance of winning an IDO allocation. Users who keep staking POLYS on a month-to-month basis will earn additional PolyPower.
2. Governance
Polystarter wants to create a completely decentralized ecosystem, where users and community members will decide the future course of development.
POLYS holders will have the power to vote on various governance policies, such as development and integration of new features on the platform, ecosystem initiatives, distribution of platform fees, and liquidity rewards among users, even which project gets featured on Polystarter. They will also be able to propose new governance policies apart from voting on existing proposals.
Users would have to hold a certain minimum amount of POLYS tokens to be able to submit proposals or vote. Greater the amount of POLYS held, greater will be the voting power of a user.
This has been done to enhance the security of the Polystarter ecosystem and keep malicious players out of the decision-making process. A user who holds a greater amount of POLYS is expected to have a vested interest in the progress of the platform, and would logically act in a manner that leads to the welfare of the ecosystem.
Once a proposal meets with the approval of the Polystarter community through a greater amount of positive votes, the Polystarter team will work to implement the particular feature within the Polystarter platform.
3. Liquidity Mining
Polystarter will support a range of liquidity pools in the near future. Liquidity providers will be rewarded with POLYS tokens in order to incentivize users to provide liquidity. A fixed amount of POLYS tokens will be distributed per day as liquidity rewards, and the amount of POLYS each liquidity provider earns will depend on his/her proportionate share of liquidity.
The exact details of the liquidity mining rewards structure have not been determined yet. More details will be released as we get closer to the launching of the Polystarter IDO platform.
4. User Participation Incentives
Polystarter wants to vest the power of governance back into the hands of users and community members. With this power also comes the responsibility of helping the Polystarter platform reach its full potential.
In order to incentivize participants who engage in platform services, distributed governance, and community activities. Polystarter will reward active and enterprising community members by rewarding them through POLYS tokens. Such participants will also be eligible to earn a higher lottery tier. More details will be made available to the community on this over the next few weeks.
What is Polystarter?
For Polygon-based projects to reach their potential, Polystarter acts as a mentor. From providing technical support to helping in raising funds through the IDO launchpad, it is a one-stop accelerator for innovative projects. Aimed at building a sustainable ecosystem for ingenious DApps to thrive and reach mass adoption, Polystarter shall provide extensive support. For entrepreneurs, this is where their dreams materialize into a concrete, well-rounded venture.
📰 INFO:
https://medium.com/polystarter-official/understanding-polys-its-use-cases-and-utilities-baf7b00f4cc7
