The crypto space is becoming more and more interoperable, developers in search of great adoption and success will need to embrace this trend. Amongst the ruling blockchains, Polkadot and its unique approach to governance and interoperability are quickly becoming the hub for the projects that could usher the future of the industry.
Unlike Ethereum, Cardano, and other blockchains, Polkadot leverages a distinctive mechanism that lets the community choose the projects that will occupy limited slots on the network. To participate in the auctions, projects need to gather enough funds.
Once the process is completed, winning projects will be deployed via parachains, independent networks that power the protocols. This process has already unleashed a fearful competition with many projects, such as Moonbeam, Bifrost, Astar Network, and Litentry going strong to take the lead.
Most of these projects offer a steady reward to gain community support and win the auction. Astar has introduced a 3-bonus level for its supporters with 5% of its native token ASTR locked as part of their Crowdloan.
On the other hand, Moonbeam offers uses a portion of a 30% Crowdloan pool, but investors must wait until the project deploys its compatibility with the Ethereum Virtual Machine (EVM). Also, 70% of the rewards will be distributed in the 96 weeks leasing period for the slot.
Of the aforementioned projects, the Crowdloan launch by decentralized identity aggregation protocol Litentry offers a dynamic and versatile program with adaptive rewards, bonuses, and other opportunities for its supporters.
On top of that, participants will be able to stake their DOTs without extra requirements or complications. The Litentry Network will connect its parachain to the Polkadot relay chain. In doing so, it will provide users with more security and interoperability.
Already running on Ethereum and Binance Smart Chain with its own native token called LIT, giving it an advantage over similar projects trying to get a slot on Polkadot, the recently launch Crowdloan strategies are a major step for the network.
The project has been listed on the leading crypto exchange Binance for a long time and has a strong liquidity base. Thus, investors have an additional layer of security and can rely on the legitimacy of the project.
The project has allocated 20% of LIT’s total supply or 20,000,000 to incentivize users and reward its supporters to obtain a superior position and a higher chance to obtain a slot in the Polkadot auction. The program will be live from the first slot to the fifth auction and will remain active until Litentry secures a place on the network.
Litentry Offers The Best Rewards On The Polkadot Ecosystem
By allocating 20% of the LIT token total supply in the Crowdloan Program, Litentry offers DOT holders one of the best low-risk/high reward strategies to diversify their portfolio. In that way, investors will have an additional opportunity to profit other than staking their DOT.
In order to participate in the Crowdloan Program, investors need to lock 5 DOTs for the auction. This initial investment will be rewarded with a minimum of 2.5 LIT.
Later, final rewards will be estimated based on the contribution percentage of every user to the Crowdloan pool. In other words, one user’s DOT contribution will be divided by the total DOT contributions in the pool.
These rewards will be distributed when the Litentry parachain running on the Polkadot relay chain goes live. Each investor will receive their LIT rewards linearly in each block for the duration of the Slot leasing period: 96 weeks.
Even if the project fails to secure a slot, investors will still be compensated in the new Crowdloan campaign with additional LIT tokens until the program’s target is met. Compensations will reach an estimated 13% APY for a Crowdloan period of 5 weeks.
For early supporters, there will be a bonus of up to 10% if they support the campaign before November 18 or 5% if they participate by November 25. Also, users can earn extra rewards if they complete an identity-based task and support Litentry Network’s main use case. Users can also earn extra incentives through several of Litentry’s partners, including the SubDAO airdrop, a Binance warmup promotion, and an all-new partnership with Polkadot Name System that earns users who contribute more than 10 DOT with a free .dot domain name.
Although beneficial, Polkadot’s staking rewards have a much lower upside than betting on the growth of its ecosystem. A project such as Litentry network, with a high interoperable capacity and a use poised to see an increase in demand, as more people require an alternative to centralize data and identity systems.
Therefore, the Crowdloan Reward Program is a great chance for early investors to fully capture Litentry’s potential to become a top project on one of the most promising ecosystems in the space. At the same time, these investors will maintain their capacity to move between blockchains.