Evaluation
Evaluation Process
Evaluators assess projects that applied for funding on Polimec. They are incentivized to evaluate projects correctly as they earn rewards for successful evaluations or are slashed for unsuccessful ones. The incentivization mechanism encourages evaluators to only back projects which they consider to have an above-average success probability and consequently ensures that only projects deemed promising are made available to other participants.
Evaluators have the opportunity to perform due diligence by assessing the whitepaper, team, tokenomics, total supply of mainnet tokens, roadmap and usage of funds of a project for 7 days after project submission. Polimec provides a dashboard allowing other participants to analyze the evaluation results. This mechanism fully informs participants and enables sharing of information during the decision-making process.
Evaluators signal that they expect a project to successfully complete the funding round by bonding PLMC. After bonding PLMC for the evaluation of a project, the evaluation lock activates, which means that the bonded PLMC are only available for participation in funding rounds for the evaluated project and voting. The evaluation lock is active until the completion or cancellation of the funding round. The evaluation process informs participants in an open and interactive decision-making process before a funding round starts. Evaluator DID’s can link to social media profiles (e.g. Twitter, Telegram, Discord, Youtube, Github) in a verifiable manner to reach more people and to increase the quality and verifiability of the evaluations. This allows publishing evaluations in an easy-to-access form while also raising project awareness.
Evaluator backing is crucial as a project only progresses to the funding round if it reaches 10% of PLMC bonded by evaluators (in USD equivalent) in relation to the target funding amount. At this stage, failure to meet the 10% threshold does not entail any slashing for the evaluators. However, if the project reaches the 10% threshold and thus progresses to the funding round, the following threshold applies to the total amount raised relative to the target funding amount, which determines the evaluator’s potential outcome.
Possible outcomes:
≤33%
Rejected (autom.)
Slashed
Refunded
>33%
Accepted (autom.)
Rewarded
Receive Contribution Tokens
Should the total amount raised fall at a level of 33% or below of the target funding amount, the protocol automatically declines the project, slashes 20% of the evaluators’ bonded PLMC, and refunds the participants. The slashed PLMC are allocated to the on-chain treasury. The 33%-threshold incentivizes projects to raise funds in line with their expectations. It prevents unrealistic or excessively high valuations as well as participants getting stuck in an unsuccessful funding round.
Should the total amount raised fall above 33% of the target funding amount, the protocol automatically accepts the funding, evaluators are rewarded in the respective contribution tokens based on the amount raised for the project, and participants receive the respective contribution tokens based on their participation.
Based on the total amount raised compared to the target funding amount, the funding is automatically accepted or declined. The applicable settlement will occur 1 hour after the automatic outcome.
For detailed calculations, visit Polimec’s evaluator rewards allocation section.
PLMC bonded for evaluations can still be used to participate in the funding round of the evaluated project as well as for voting, and are released at the end of the funding round.
Calculation Example (Cont.)
Example funding specifications:
Target funding amount: USDT 1,000,000
10% (threshold) of target funding amount: USDT 100,000
Evaluators bonding PLMC during the evaluation period:
The 10% (threshold) of the target funding amount represents the minimum level of support required from evaluators for a project to progress to the funding round. This threshold requires evaluators to bond PLMC equal to 10% of the target funding amount. This approach prevents unrealistic or excessively high valuations, as well as participants getting stuck in an unsuccessful funding round without the economical means to deliver on their planned endeavors.
After 7 days, and given that the total USD amount of PLMC bonded by evaluators is USDT 200,000 (as shown in the example), and the total USD amount of PLMC required to meet the 10% evaluator bonding threshold is USDT 100,000, the project successfully progresses to the funding round.
Social Credit Building
The evaluation process includes gamification features, such as social credit building. Evaluators are scored based on past evaluations and can increase/decrease their scores to move up or down in the evaluator ranking.
Social credit building allows participants to follow evaluators they trust based on publicly available data. Social credit building generally narrows knowledge gaps, as one evaluator may emphasize technical aspects while another may focus more on the potential business case.
A visible track record of evaluators’ assessments further enhances accountability on the network. Furthermore, evaluators can link their pseudonymous identity credentials with social media accounts (e.g. Twitter, Telegram, Discord, Youtube, Github) to increase, and benefit from, their community engagement.
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