Parallel ($PARA) Token

Overview

Parallel ($PARA) is the native platform token for Parallel's Polkadot parachain. It is required to execute the functionalities and security of our protocol. Note that these tokens are not currently in circulation, but there will be upcoming plans that our team will share - stay tuned! 🚀

Allocation

The total supply for PARA token is 10 billion. We made the decision to incentivize parachain-level activity and usage. Parallel will likely be able to provide the most generous liquidity mining incentive of any project on the Polkadot ecosystem, both for developers building on Parallel, and for users providing liquidity. Moreover, we reserve an allocation to the insurance pool to minimize drastic changes in market prices and liquidation risks in the DeFi markets. With an insurance pool, our protocol will be able to cover users’ loss, and give new users confidence to stake in our decentralized, non-custodial staking pools.
This is how we allocated Parallel ($PARA) accordingly:
  • 25% Liquidity Mining Rewards
  • 20% Team & Advisors
  • 15% Private Investors
  • 15% Ecosystem
  • 5% Insurance Pool
  • 15% Crowdloans* (12.5% allocated to round 1, any remaining will be used for future crowdloans)
  • 5% Seed Investors
*Note that the numbers here may be subject to change.

Parallel Token Distribution

Users who want to play a part in Parallel’s future are encouraged to participate in Parallel’s Polkadot crowdloan. 12.5% will be split among all of the contributors in the first batch of parachain auctions, parachain partner bonuses, and released according to a linear vesting schedule if/when Parallel wins a Polkadot parachain auction. The remaining 2.5% will be used for future crowdloan bonuses. The crowdloan contribution is soft capped at 20M DOT (with a hard cap at 40M DOT) and will allocate up to 15% of the total supply (1.5B PARA tokens) as rewards and bonuses. The base rate for Parallel crowdloan is a minimum of 33 PARA tokens per DOT contributed, all undistributed rewards will be proportionally distributed to Parallel crowdloan contributors.

Vesting

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.

PARA’s Utilities

  • PARA token holders are delegated with voting rights and the ability to propose governance action, referenda, network upgrades, council elections, and other parameter adjustments.
  • PARA is a native fee token that is required to execute the functionalities and security of the protocol.
  • The native token is utilized to incentivize collators and validators, which is the mechanism that powers the decentralized node infrastructure of the network.
  • PARA token is utilized to hedge risks, incentivize rewards, and share profits. The insurance parameters are determined by PARA token governance in the event of a slash.
  • PARA will be burned when a fee is paid on our platform. These fees include money market fees, staking/ unstaking fees, transaction fees, and any fees in our future fixed-rate products as well.
  • PARA will be added as an incentive for users to stake, lend, and borrow on Parallel.
  • Validators will have incentives to hold PARA in order to be whitelisted in our node evaluation schema/algorithm. The more PARA they hold, the better their chances will be of being nominated by our stakers.