Crowdloan FAQ
Parallel Crowdloan
Total $PARA Supply: 10,000,000,000
Crowdloan Allocation: 1,500,000,000
Crowdloan Allocation %: 12.5% allocated to round 1, remaining will be used for future crowdloans.
Parallel’s Parachain slot lease: 96 weeks
Vesting $PARA: approximately 96 weeks linear release (every block)
1.When will the Parallel crowdloan start?
4th November -
2.How long will my DOT be locked?
Your DOT will be locked for the entire lease period, which is ~96 weeks. However, participants will get cDOT, which they can use to stay liquid.
3.When will I get my PARA tokens?
You will receive your PARA tokens after Parallel Finance wins a parachain slot, launch, and allows the transfer of tokens.
4.Which wallets can I use to participate?
Polkadot{.js}
5.What happens if Parallel Finance doesn't win the first auction, what happens to my DOT?
If Parallel Finance does not win the first auction, it will continue to bid at subsequent auctions. In total, there are 5 auctions in the first batch of slots.
How to participate
I’m currently staking my DOT - what do I need to do?
You should unstake your DOT. The guide «How to unstake DOT on Polkadot{.js}» is here.
2. Will my DOT be refunded after the end of the blockhain lease?
Parallel’s auction loan participants can redeem cDOT they hold after the Parallel Finance lease expires for an equivalent amount of DOT (the ratio of cDOT to DOT is 1:1).
3.Can I withdraw my DOT from crowdloan?
No. All applications for participation in the crowdloan module are final and cannot be withdrawn, but you will get cDOT which you can sell.
How does cDOT work?
When will I get cDOT?
When users contribute to the auction loan platform, we issue cDOT and it has utility.
2. If I sell my cDOT, will I be able to get my contribution to the DOT at the end of the lease spent?
Participants who have made a contribution must hold the cDOT at the end of the lease spent in order to exchange their cDOT for DOT. If these participants no longer own cDOT, they will not be able to exchange them for DOT.
3. If I sell my cDOT, will I be able to receive PARA awards?
Yes. If you make a DOT contribution to Parallel Finance, you will receive PARA rewards. The sale of the cDOT does not affect your PARA rewards.
4. Does cDOT have a vesting period?
Users are able to receive cDOT after Parallel’s parachain launches. The cDOT is immediately transferrable and can be used for different types of DeFi applications on Parallel’s platform.
Parallel Token Distribution
Up to 12.5% will be split among all of the contributors in the parachain auction, and released according to a linear vesting schedule if/when Parallel wins a Polkadot parachain auction. The remaining 2.5% will be distributed in future crowdloans.
The crowd loan contribution is soft capped at 20M DOT (with a hard cap at 30M DOT) and will allocate 15% of the total supply (1.5B PARA tokens) as rewards and bonuses.
The minimum guarantee is 25 PARA if you use Polkadot{.js}. However, if you use Parallel platform, you will get 33 PARA tokens per DOT contributed.
PARA vesting
Up to 15% will be split among all of the contributors in the parachain auction, and released according to a linear vesting schedule if/when Parallel wins a Polkadot parachain auction.
The crowdloan contribution is soft capped at 20M DOT (with a hard cap at 40M DOT) and will allocate 12.5% of the total supply (1.5B PARA tokens) as rewards and bonuses another 2.5% will be distributed in future crowdloans.
The minimum guarantee is 20 PARA if you use Polkadot{.js}. However, if you use Parallel platform, you will get minimum of 33 PARA tokens per DOT contributed.
The tokens rewarded will be vested linearly across a two years time frame. This means that every block, a proportion of PARA rewards will be unlocked, and the user can claim them at any time. There is no cliff in the crowdloan vesting, so the distribution will occur evenly, every day and month.
Parallel’s auction loan
How does vesting work?
Users can participate in any crowdloan projects through Parallel’s platform.
The tokens rewarded will be vested linearly across a two year time frame. This means that every block, a proportion of PARA rewards will be unlocked, and the user can claim them at any time. There is no cliff in the crowdloan vesting, so the distribution will occur evenly, every day and month.
Parallel’s Auction Loan Product
Users can participate in any crowdloan projects through Parallel’s platform. How does it work?
By contributing to crowdloans through Parallel’s platform, users can gain higher returns through additional bonus rewards.
Example 1:
If users participate in the crowdloan through Parallel’s auction loan, they will get: 1 DOT = Project A’s basic reward + X% project A’s extra bonus + Y% Project A’s extra bonus + $PARA bonus
By contributing to crowdloans through Parallel’s platform, users can gain higher returns through additional bonus rewards.
In comparison, participating in project A’s crowdloan through Polkadot.js, they will only earn: 1 DOT = Project A’ basic bonus.
Example 2:
Users can gain access to early liquidity through the auction loan and are not held up by the 2-year DOT locked up period.
If users participate in the crowdloan through Parallel’s auction loan, they will get: 1 DOT = Project A’s basic reward + X% project A’s extra bonus + Y% Project A’s extra bonus + $PARA bonus
By participating in project A’s crowdloan through the auction loan product, users will get cDOT-A derivatives. These are liquid assets that can be traded on the AMM market or collateralized in the lending market, when our parachain launches.
In comparison, participating in project A’s crowdloan through Polkadot.js, they will only earn: 1 DOT = Project A’ basic bonus.
Community Early bird: Receive up to 40% bonus when you contribute early to Parallel’s crowdloan (for contributions <100K DOT)
40% bonus for every $DOT contributions made before 11/10/21
20% bonus for every $DOT contributions made on 11/11/21–11/16/21
10% bonus for every $DOT contributions made on 11/17/21–11/23/21
5% bonus for every $DOT contributions made on 11/24/21–11/30/21
2.5% bonus for every $DOT contributions made on 12/1/21–12/7/21
NFT: Parallel will be rewarding 1,000 NFTs to 1,000 randomly selected contributors. These NFTs will have utility on Parallel’s platform.
Crowdloan allocated 12.5% with an additional 2.5% allocated for future crowdloans. Where will the unallocated crowdloan tokens go if they collect less than the DOT value?
Non - used tokens will be distributed as a reward for contributing to other crowdloans (1 DOT = 4 PARA).
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