How Litentry’s Innovative Crowdloan Program Gives DOT Holders A Chance To Maximize Their Rewards
November 22 2021 - 04:36AM
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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.
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