Plasm Network – Parachain Lease Offering – Bidding Strategy, Online Process, Lockup Drop

With the footsteps of 2021 coming, the Polkadot ecosystem seems to officially usher in its own highlight moment, especially the recent period of DOT crazy up, which can be said to be through the most direct way to let everyone pay attention to Polkadot.

But the so-called DOT price rise is only a reflection, the real reason is that the much-anticipated Polkadot slot auction has gone on the „launch site…”

First of all, on January 13, Polkadot announced the registration process of the parachains test network Rococo V1 slot, which means that we have been waiting for a long time for a parallel chain testing network to officially opened the curtain. Then on January 16th, the Rococo team announced the overall strategy for the V1 test slot and introduced the general sequence of access projects.

According to the Polkadot Parallel Chain auction process shared by Gavin, the founder of Polkadot, We have come to the first step, which is „go live Rococo v1 and wait for it to run steadily.” The next stage will go live with the system parachain and „open the bidding on Kusama.”

For most quality Polkadot economy projects, Polkadot parachain card slot auctions are also something they need to rub their hands to compete for. So far we have seen the first parallel chains deployed in Rococo V1, and quality ecological projects like Plasm Network and Acala are among the first to be connected to the test network.

So, in the face of the progress of Polkadot officials in the slot auction, what kind of card slot auction plan is the eco-project side currently working out? This article will explain in detail the first access to the Rococo V1 slot project Plasm Network slot auction plan.

What is PLO?

Before introducing the Plasm Network slot auction plan, we will briefly explain what is PLO (Parachain Lease Offerings)?

A wave card is composed of a relay chain, parachain, and bridge. The parachain is an important role in the cross-chain and extended functionality of the Polkadot, and shares the security of the parachains need to consume wave card computing resources, so the number is limited, the official adopted the form of PLO for participants to bid as parallel chains, is expected to participate in the auction of parachains around 50.

PLO is actually the project side by locking DOT to participate in the auction way to obtain the right to lease the slot, the locked DOT is automatically returned to the original account after the lease period ends. Because slots are scarce, the cost of bidding for a slot is relatively high. The project side can compete by attracting DOT holders to lock DOT to help them bid and reward those who help them with their own native tokens.

This is equivalent to the project side loan DOT holder’s DOT, and with their own token in the form of reward to DOT holders, This also serves the purpose of distributing native tokens. We call this auction Parachain Lease Offering (PLO), a new form of crowd loan.

Innovation in PLO

Crowdsourcing is a safer way to participate. Unlike ICO, when you do PLO, you don’t give up ownership of your DOT. You just lend it to someone else and lock it inside the Polkadot relay chain. Very secure. So if this parachain goes bankrupt, you can get your DOT back. This is different from most ICOs in the past where the developer has not delivered anything yet and can take all the funds.

PLO is an innovative way to flourish the Polkadot ecology. The principle of the auction of slots is to guarantee the maximum number of DOTs locked in the slot within 2 years, which means that the final bid to get the slot is not necessarily a single item, it may be a combination of 1 to 4 items.

PLO is also a way to keep the Polkadot ecologically vibrant. Because the slot lease is only for 2 years, after the use-by period expires, If the status of the parachain is not very good, it will be eliminated by the auction mechanism, re-select the most resources and potential projects as parachain, which will always maintain the vitality of the Polkadot ecological network.

Plasm Network PLO Program

Auction Strategy

The reason why Plasm is getting so much attention also stems from the fact that its Genesis team developed a detailed development plan from the beginning and made bidding for slots an important development milestone for the team. In an article posted last year by Plasm founder Sota Watanabe, he wrote, “The Plasm Network is a scalable smart contract on Polkadot that supports state-of-the-art Layer 2 solutions. From the beginning, our priority was to be a parallel chain of the Polkadot network.”

Because of this, soon after Plasm’s birth, we saw its plans for future slot auctions for Polkadot and wrote them in a white paper. Before the Polkadot parachain was officially launched, Plasm distributed tokens by way of „Lockdrop” lock ETH, And there is a difference between the third lockdrop DOT lockdrop and the previous ETH lockdrop because it is more in line with the principles of PLO.

First of all, the 3rd DOT lock drop will not begin until the Polkadot parachain auction!

Plasm officially invites community supporters to lock DOT tokens on its parachain slot (note: not using a smart contract or anything like it). Once the Polkadot relay chain confirms that the DOT is locked, the corresponding amount of PLM is calculated and distributed to lockers.

Of course, if enough users participate in the lock, it is possible for Plasm to directly acquire the rights to use the Polkadot parachain this way, and then distribute the corresponding PLM tokens based on the DOT amount of the lock. The lock time of the DOT is equal to the time that the Plasm Network uses parallel chain slots, currently estimated to be 2 years, and no one has the right to move or use the lock DOT during this period.

It should be noted, however, that if the auction is not successful, it will lead to the failure of the lockbox aircast. So if the bid fails, the user’s DOT will be returned. If the auction is successful, the user’s DOT will be locked up and given a PLM.

Plasm Network parachain on-line process

• Stage 1: Complete all ETH lockups. The first lockup probably last February, lockup over 16,000 ETH, The second lock time probably started from the beginning of September last year, experienced a month, lock more than 130000 ETH, two total locks more than 150,000 ETH (actual 154036). At this stage, WASM-based contract functions and Ethereum compatibility are completed, and Plasma is compatible with most of the Layer 2 solutions on the market, becoming an extensible smart contract platform.
• Stage 2: Support Community Rewards and Layer2MVP.Community Rewards is an important feature designed to motivate early PlasmNetwork participants and encourage developers to create some interesting content for the community to view. Community rewards enable early web contributors (i.e. DApp developers) to earn a basic income (in the form of PLM tokens) from blocks based on their performance. „Performance” is measured by the number of contract nominations received. For functions related to the Layer 2 protocol, we first implement OVM, which is the unification of all Tier 2 protocols.
• Stage 3: Redenominate PLM tokens.
• Stage 4: PLM tokens go live. The PLM token has been issued during the first two lock-in airdrops. To avoid damaging the community’s interests, the transfer has not been opened. Will open before the Kusama parallel chain goes online.
• Stage 5: Become a parallel chain of Kusama / Polkadot

At present, Plasm Network has successfully connected to the Polkadot resting network Rococo V1, which will be fully tested to become a parachain, and left its team plenty of time to prepare for the auction of Polkadot slots.

How does Plasm Network help the Polkadot economy when it becomes a parachain?

• Fill an important function of the polka ecosystem: vertical scalability

As the underlying infrastructure that links all blockchain chains, the wave card has very strong extensibility on the chain, but in the design of wave card, there is no vertical extension under the chain of Layer 1 to Layer 2.

Since the popularity of Defi in June 2020, Etai Square has been subjected to a long-term stress test, gradually exposed some of its problems, transfer congestion, Gas Fitch Gao, directly affecting the use of Defi and other applications in the ecology. However, there are always two sides of things, based on the situation of Ethernet, but promote the rapid development of Layer2 solutions to solve these problems, many R & D teams or investment institutions also shift part of the focus to improve the scalability of applications. So, we can see news such as the well-known Defi project Synthetix chose to migrate the main network to the Ethernet Layer2 solution Optimistic Ethereum.

So, for future blockchains that want to host many DAPs, Layer2 is a very important extension solution, And Plasma is just to fill the need for a wave card ecology has a Layer 1 to Layer 2 vertical extension of the chain under the parallel chain, so that DApp developers peace of mind to do applications, do not worry about expansion problems.

• Bring more solutions to Layer 2 for Polkadot

Layer2 can effectively solve the problems caused by Ethereum’s lack of scalability, but different Layers2 have their own advantages, and there are different projects to follow. For Plasm, which wants to achieve the ultimate in vertical scalability on a wave card, it’s not just a Layer 2 solution, but an „I want it all.”

Plasm supports Layer2 OVM (Optimistic Virtual Machine), It is a virtual machine that supports all Layer2 protocols. Based on this, Plasm is compatible with all Layer 2 solutions on the market. Including the current hot ZK Rolloups and Optimistic Rollups that have been liked by the V God. This also means that projects that support different Layer2 solutions will be compatible with Plasm and bring more Lay-2 solutions to Polkadot

• Help Polkadot perfect compatible with Ethereum

In addition to compatibility with various Layer 2 solutions, Plasm in Layer 1 is also compatible with Ethereum, currently the largest blockchain Dapp platform. Plasm will be Ethereum-compatible with Solang, EVM modules, and Frontier. At the same time, Plasm is also developing an RPC module. 95% of Ethereum’s development tools and libraries are compatible with Plasm through the RPM module, thus opening up the connection channel between Ethernet and wave card.

• Establish a more prosperous DApps platform for Polkadot

Besides its advantages in Layer 1 and Layer 2, Plasm itself is also very innovative in the design of a mechanism for DApp developers. Operator trading and Stakingreward are better incentives for developers to use smart contracts on Plasm Network.

In summary, Plasm Network becomes a „triple win” from parachains

For those who participate in Plasma’s PLO, they get PLM for less than the cost of mining other PLM-lockouts, And once Plasma becomes a parachain of Polkadot, the value of PLM will increase dramatically.

For the entire Polkadot ecosystem, Plasm can further enhance the scalability of Polkadot, and for future developers to provide a rapid, scalable DApp development platform.

Currently, we plan to fork Plasm Network and launch Shiden Network in the middle of February after finishing PoS and Plasm Dapps Portal implementations. After that, we will enable the token transfers and conduct redenomination. Also, we plan to launch the Plasm Network Portal by the end of February. You can deploy both Solidity and ink! contracts on Shiden Network through this portal and earn SDN tokens.

For the Plasm Network project, successful access to Polkadot and KUSAMA will enable Plasm Network to have a stronger presence in the blockchain community, attract more participants and developers, and enrich the ecosystem of Polkadot

The text was originally published by Polka World in Polkaworld Wechat, edited and translated by STAKENODE

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