About Polkastarter (POLS)

Polkastarter is a decentralized cross-cross chain fundraising platform.

 According to documentation, the Portugal-based protocol allows independent projects to raise capital via fixed swap token pools, Messari explained.

Making this all possible is Polkastarter having been birthed on the Polkadot network.

"It has an infrastructure that allows for different blockchain protocols to interact with one another in a decentralized way," Coin Bureau said. "Because of this, it means different blockchains have interoperability with one another, which opens up a host of features and benefits.”

The protocol is designed to combat the volatility issues inherent in initial DEX offerings (IDOs). While platforms such as Uniswap provide a decentralized means of issuing tokens, the nature of its algorithmic pricing often subjects new assets to wild price swings and front running. Polkastarter flips the script by distributing tokens at a fixed cost.

Fixed swap pools can be programmed with investment limits and other customized parameters to ensure fair issuance, project documentation explained.

As it is Polkadot-based, Polkastarter uses DOT’s native interoperability functions to facilitate cross-chain swaps and IDOs.

In April of 2021, Genesis Shards became the first Polkastarter-backed IDO to simultaneous raise funds across multiple blockchain ecosystems, Etehreum and the BNB Smart Chain.   

Polkastarter has a native token, POLS, used to pay transaction fees and confer voting rights. POLS can be staked in the protocol; doing so earns various incentives and there is the ability to generate tokenized rewards as well as participate in new IDOs.

As of June 2022, Polkastarter had facilitated 109 independent IDOs worth a combined $48.8 million. The project’s multi-chin architecture currently supports fundraising efforts across Ethereum, Polkadot, Polygon, BNB Smart Chain and Solana among other networks.

When was POLS created and how much was it worth?

Lauched in 2020, Polkastarter is the brainchild of experienced tech entrepreneurs Daniel Stockhaus and Tiago Martin. Both remain involved in the project, serving as CEO and CTO respectively.

The project’s native token, POLS, was first released in August of 2020 following two rounds of seed funding which saw the protocol net roughly $875,000. A further 15 million tokens (15% of supply) were distributed via a Uniswap IDO one month later. At that time POLS was valued around $0.05.

According to Coin Gecko, POLS hit a record high of $7.51 in February of 2021. Following a brief dip and consolidation, the token rallied once again over autumn 2021 before meeting severe volatility. 

In June of 2021, there came forth Polkastarter 3.0, a network upgrade designed to bolster cross-chain swaps and asset bridge integration.

How is the price of POLS determined?

POLS is deflationary, with a hard cap of 100 million tokens.

According to Messari, some 15% of that supply was initially distributed via a Uniswap IDO in September of 2020. An additional 27.5% was released via two separate private sales, while some 22.5% was earmarked for the protocol’s liquidity fund. A further 10 million tokens (10% of supply) went to the project’s founder and earlier advisors.

Why does POLS have value?

POLS’ value proposition is a factor of the decentralized, cross-chain fundraising environment it helps facilitate.  

Is POLS secure?

POLS is listed on a number of leading exchanges subject to both domestic and international regulations. Per Messari, the protocol features several pertinent security features like smart contract verification.

What are the main benefits of POLS?

• Polkastarter allows independent projects to raise funds in a decentralized, multi-chain environment.
• Polkastarter’s fixed swap pools eliminate the volatility inherent in traditional IDOs.
• Users can stake POLS, the project’s native token, to participate in future/upcoming IDOs.
• More than 100 projects have leveraged Polkastarter to raise funds.

What do critics say about POLS?

While the project has been quick to call them out, several bad actors have attempted phishing schemes designed to illegitimately procure funds from unknowing investors. Price volatility is high in its native token, Coin Bureau said.