FAQ
About Polimec
What is Polimec?
Polimec is a decentralized community-driven funding protocol developed on Polkadot to accelerate the Web3 ecosystem. The open-source and module-based blockchain system facilitates fundraising in a regulatory compliant and sustainable manner using on-chain credentials.
When was Polimec founded?
Polimec started in late 2020 to realize the vision of the first decentralized, community-driven funding protocol for Web3. Since then, a dedicated team with extensive experience in crypto and financial services has taken on the protocol’s further development and the network’s future launch.
Will Polimec have its own token?
Yes - PLMC, the native Polimec token, grants access to evaluation, participation, staking, and governance. More details on these functionalities can be found here.
Why did Polimec choose to be part of the Polkadot ecosystem?
Polimec builds on the Polkadot ecosystem infrastructure due to its crucial differentiation from other decentralized protocols. One of the differentiating pillars is the security of the blockchain: on Polkadot, every parachain derives its security from the Polkadot Relay Chain and its validators. This ensures that each step on Polimec is safe and trustless. Low transaction fees allow the platform to scale and runtime upgrades enable Polimec to improve consistently and swiftly without requiring time-consuming forks. Lastly, Polkadot enables true interoperability and cross-chain transfers of any type of data or asset. The ability to interoperate with various blockchains is critical for a thriving fundraising ecosystem and leveraging network effects.
Community
Who can use Polimec, and who is the target group?
Polimec brings together all stakeholders required for sustainable project funding and aligns their multifaceted interests. Polimec’s decentralized and permissionless approach welcomes and grants access to everybody. Nevertheless, to perform various actions, such as evaluation, participation, staking, and governance, network participants must complete a KYC/AML process executed by a trusted third party to ensure regulatory compliance. The following network participants are involved in funding rounds on Polimec:
Issuers who raise funds
Evaluators who evaluate projects
Participants who participate in funding rounds
All the network participants contributing to a funding round require attested credentials to interact with the network. Credentials are created and issued by trusted third parties who provide the required KYC/AML services.
Where do I find Polimec’s social media channels?
You can join the community and follow any development on the official Polimec channels:
Can I open an unofficial Telegram channel?
The Polimec community is free to open any unofficial channels for discussions among peers. In fact, Polimec encourages the creation of such groups if none are available in your language. However, the community is kindly asked to label the group as "unofficial" to avoid any confusion. For further information/guidance, please contact one of the admins in the official Polimec Telegram group.
Where can I find Polimec’s logo and brand assets?
Polimec is for everyone. However, the community is kindly asked to treat Polimec brand assets with care and with good intentions only. You can find the Polimec brand assets under the brand assets section.
Development
Where can I track the progress of Polimec?
Polimec offers different ways for its community to stay updated on new developments. You can subscribe to the Polimec newsletter, where you will be the first to find out about the most important updates, or follow us on our various social media channels. Join our official channels below:
If you are starting your Polimec journey, check out the Polimec roadmap to learn more about past and future milestones.
At what stage is development now?
To find out about current and coming stages of development, have a look at the Polimec roadmap.
Which technology is Polimec using?
Polimec is built on Substrate. Substrate-based chains are designed to seamlessly connect to Polkadot, granting access to its system of parallel transactions, cross-chain transfers, and an expanding support network. Parity Technologies uses Substrate to build Polkadot, which attests to its high degree of performance, flexibility, and robustness. Much of what makes Substrate a flexible and extensible framework for creating mission-critical software is due to Rust: a fast and memory-efficient language with no runtime or garbage collector. Its type system also guarantees memory safety and thread-safety, allowing Polimec to eliminate many classes of bugs at compile-time.
How does Polimec ensure the highest coding standards?
Polimec ensures the highest standards by hiring the best talents available. For example, Polimec hired one of the graduates of the first Polkadot Academy in Cambridge, where he demonstrated his expertise in Rust and Substrate. To maintain this standard, Polimec has proven its value and was accepted to the Substrate Builders Program introduced by Parity Technologies (creator of Substrate) to receive support systematically, including comprehensive assistance and advice. Additionally, Polimec performed a security audit before go-live to ensure best industry practice.
Differentiator
Why do we need Polimec?
Centralized funding platforms and other intermediaries act as gatekeepers for the crypto industry by imposing non-transparent terms and processes on issuers and participants in their self-interest. Thus, the current fundraising options suffer from several shortcomings, such as time and capital inefficiencies, the administrative burden in fundraising and token distribution, closed accessibility in deal participation, and intransparency of fundraising terms and history.
Polimec solves these issues and provides an automated framework for optimal economic incentivization and sustainable value creation by being committed to the following values:
Trustless: Polimec enables regulatory compliant fundraising without intermediaries or counterparty risk in a permissionless system.
Collaborative: Polimec empowers participants to assess projects in a decentralized due diligence mechanism as their backing is decisive for funding.
Accessible: Polimec facilitates global access to funding on a level playing field, allowing retail and professionals to participate alongside institutionals.
Inclusive: Polimec provides access to a broad and diverse community, coupling community building with a solid participant base for the benefit of all. Polimec reduces information asymmetry in funding through transparency in entry prices, vesting periods, and token allocations.
Transparent: Polimec reduces information asymmetry in funding through transparency in entry prices, vesting periods, and token allocations.
Efficient: Polimec provides a trustless and automated funding process from fundraising to token distribution to the conversion at the project’s mainnet launch.
What makes Polimec different from other funding platforms?
The competitive advantage of Polimec lies in the incentive alignment of the platform. Polimec utilizes the Polkadot blockchain for triple ledger accounting, with all modules being on-chain. This enables Polimec to mitigate counterparty risks, provide instant delivery vs. payment, transparency, and to grant 24/7 uptime of the platform. Polimec additionally outsources the selection of deals which can raise funds to various investor types rather than acting through a centralized committee.
As a result, Polimec eliminates the pay-to-win structure to raise funds on the platform. These features combined make Polimec a trustless, transparent, rule-based system. It enables fundraising for more significant or smaller projects, which cannot or do not want to use existing launchpads/centralized providers.
Polimec differentiators:
Regulatory clarity
No counterparty risk
No upfront fee for issuers or participation fee
Transparency
What are the benefits of a decentralized funding mechanism?
Centralized counterparties suffer from several shortcomings, prohibiting them from aligning the interests of all stakeholders. They are known for time and cost inefficiencies, extensive administrative burdens, selective accessibility, and intransparency in pricing and procedures. Decentralized structures allow stakeholders to align themselves by allowing the following key features:
On-chain credentials enable pseudonymous yet fully regulatory-compliant funding.
Automation of administrative overhead through on-chain settlements.
Increased time and capital efficiency and lower geographical entry barriers.
Removal of counterparty risk.
All steps, such as token issuance, distribution, and process documentation, are automated on-chain.
Is Polimec a launchpad?
Polimec is not a launchpad; it is much more. These are the key differentiators:
Polimec enables projects to outsource the selection of deals which can raise funds to various investor types rather than acting through a centralized committee.
This mitigates the pay-to-win structure to get a raise on the launchpad by paying the provider more.
Polimec pools various participant types together in the funding rounds and enables open access to and for a broad and diverse participant base. Launchpads, on the other hand, limit exposure exclusively to their client base, which is limited to one of the participant types or people in the know.
Polimec aligns the incentives of the various network participants during and beyond a fundraise and utilizes the Polkadot blockchain for triple ledger accounting with all modules being on-chain. This combination enables the mitigation of counterparty risks, increases transparency, and ensures 24/7 uptime.
Lastly, Polimec alternatively allows using assets with low volatility, such as stablecoins to fund deals. This makes it more attractive for risk-averse participant types, rather than requiring participation with a currency dictated by the launchpad.
Therefore, Polimec can be considered as the next step in the evolution of launchpads in a regulatory compliant manner.
Regulatory Basis
What is AML?
AML is an abbreviation for "Anti Money Laundering" and refers to a set of laws, regulations, and procedures aimed at uncovering efforts to disguise illicit funds as legitimate income.
What is KYC?
KYC is an abbreviation for "Know Your Customer" and refers to standards used to verify identities. Polimec utilizes credentials issued on-chain by specialized, trusted third parties to ensure adequate knowledge and verification of all network participants. For this process, Polimec uses KILT credentials. KILT credentials are pseudonymous, and no personal information is stored on-chain - hence all transactions and network participants on Polimec can be processed in a regulatory compliant and secure manner.
What does regulatory compliant DeFi mean?
Regulatory compliant DeFi means engaging in DeFi functionalities or applications while adhering to laws, regulations, and guidelines regarding KYC, AML, or other applicable requirements governing the respective activity.
Does Polimec take on the regulatory compliance and responsibility on behalf of the network participants?
No, Polimec is a decentralized, open, and trustless protocol used and accessed directly by various network participants. As such, Polimec does not operate on behalf of the network participants or ensure compliance with regulatory requirements on their behalf. However, the tools and processes implemented on Polimec and its partner network allow the network participants to comply with regulatory requirements which apply to them.
KYC/AML Credentials
How do I get a KYC/AML credential?
To obtain a credential, you must go through a KYC/AML process with Polimec’s trusted partner, Deloitte. You can start the process by following the steps here. Deloitte performs the KYC/AML checks according to the requirements or standards of the jurisdiction applicable as determined based on the information provided by you. If the KYC/AML check is successful, Deloitte issues the credentials.
What are the features of KYC/AML credentials?
KYC/AML credentials issued by Deloitte are anchored on the KILT blockchain. The credentials are pseudonymous, and no personal information is stored on-chain - hence, all transactions and network participants on Polimec can be processed in a regulatory compliant and secure manner while preserving data privacy. For technical information about credentials and DIDs, check out KILT’s website.
Why do I need a KYC/AML credential?
A credential ensures a transparent, fair, and regulatory compliant experience on Polimec. It qualifies you to participate in fundraising and other functionalities while minimizing information asymmetry and aligning stakeholder interests.
Why does Deloitte issue KYC/AML credentials?
Deloitte issues credentials to bring an added layer of trust and compliance to the Polimec ecosystem. Deloitte’s established reputation as a global audit and consultancy firm ensures a robust and secure KYC/AML process by allowing participants to engage on Polimec confidently.
Others
Does Polimec have its own wallet?
No, this is currently not planned. However, Polimec’s native token PLMC is compatible with various Polkadot wallets. More details can be found here.
Where can I find a list of resources on Polimec?
You can find resources such as the whitepaper and lightpaper on polimec.org.
Who can I contact for a partnership or press inquiries?
For partnership or press inquiries, please reach out to [email protected].
Does Polimec have a staking mechanism?
Yes, the staking module allows PLMC holders to bond PLMC and earn rewards. The staking module locks the PLMC for earning rewards and requires an unbonding period of 7 days before they are transferable. During the unbonding period, the staking module does not pay out rewards.
Based on the inflation model, the Polimec treasury funds staker and collator rewards. PLMC holders earn staking rewards by nominating collators which provide stability to the network. Collators are indirectly responsible for the network security since that is derived from Polkadot’s Relay Chain. However, rewards will be sufficient to run stable collator nodes for Polimec.
Collaborations
What is the relationship between Polimec and KILT?
Polimec, originally conceptualized by the team behind KILT Protocol, has become an independent project to realize the vision of the first decentralized, community-driven funding protocol for Web3. A dedicated team with extensive experience in blockchain and financial services has taken on the further development of the protocol and the future launch of the network.
What are the synergies between Polimec and KILT?
Polimec utilizes credentials issued on-chain by specialized, trusted third parties to ensure adequate knowledge and verification of all network participants.
For this purpose, Polimec uses KILT credentials. Credentials issued on KILT are pseudonymous, and no personal information is stored on-chain - hence all transactions and network participants on Polimec can be processed in a regulatory compliant and secure manner while preserving data privacy.
KILT will benefit from increased demand as the network participants must claim credentials to access the functionalities on Polimec. On the other hand, Polimec benefits the more KILT users there are, as users with existing credentials gain easy access to Polimec. As the first application of credentials for the purpose of KYC/AML, Polimec is the catalyst for KILT and the adoption of credentials.
What are the synergies between Polimec and Moonbeam?
Polimec aims to expand to other ecosystems in the future. Therefore, it is essential for Polimec to collaborate with Moonbeam to empower EVM-based fundraising via Polimec. To bring Polimec’s mission of permissionless access to the next ecosystem, Moonbeam and Polimec collaborate to not only accelerate Polkadot-based projects but also to support EVM-based projects.
What is the role of third-party providers in the Polimec network?
Polimec utilizes credentials issued on-chain by specialized, trusted third parties to ensure adequate knowledge and verification of all network participants.
For issuers, it is essential to sell their contribution token only to individuals or entities that are properly certified and have met the KYC/AML standards per jurisdictional and funding round specific criteria. Credentials ensure that a given Polimec address always meets these requirements.
For participants and evaluators this means that KYC/AML information only needs to be shared with one trusted third-party provider, rather than repeatedly sharing sensitive data with many intermediaries and each of the issuers as required in current setups.
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