Funding Round
Last updated
Last updated
Fixed price mechanism until the total allocation is sold out
Highest bids take priority, while lower bids are excluded if demand exceeds supply
Each tranche increases in price by 10%, ensuring fair price discovery
Once the evaluation period has concluded with the required minimum evaluator backing, the funding round starts. Everyone can participate in the funding round with the predefined participation currencies (e.g. USDT, USDC, DOT, ETH) and within the range of the eligible amounts. While the project defines the maximum ticket size, the protocol specifies a minimum ticket size of USD 10 per bid. The round concludes after 14 days. Settlement of the participation amounts to the issuer account takes place 7 days after the end of the funding round.
The issuer sets a minimum price per contribution tokens as the .
If demand is within the funding target (≤Q₀), all bids are accepted at the minimum price per contribution token (P₀).
If demand exceeds the funding target (>Q₀), oversubscription occurs. In this case, the protocol prioritizes higher bids first, replacing lower bids. An oversubscribed round involves continuously reallocating a fixed amount, specifically 10% of the amount of contribution tokens allocated to the funding round (Q₀), to higher bidding prices. This increase in the bidding price is also fixed at 10% of the minimum price per contribution token (P₀). If participants submit bids at the same price, they are prioritized according to the time they were submitted. Consequently, the most recent bids with the lowest price are replaced first.
Polimec’s high-level oversubscription mechanism:
Polimec’s oversubscription structure:
T₀=Q₀xP₀ (genesis tranche)
Q₀=fixed in funding application
P₀=fixed in funding application
T₁=Q₁xP₁
Q₁=Q₀x0.1
P₁=P₀x0.1
T₂=Q₂xP₂
Q₂=Q₀x0.1
P₂=P₁+(P₀x0.1)
Tₙ=QₙxPₙ
Qₙ=Q₀x0.1
Pₙ=Pₙ₋₁+(P₀x0.1)
Polimec’s oversubscription structure (with random numbers):
T₀=USDT 1,000,000
Q₀=100,000
P₀=USDT 10
T₁=USDT 110,000
Q₁=10,000
P₁=USDT 11
T₂=USDT 120,000
Q₂=10,000
P₂=USDT 12
T₃=USDT 130,000
Q₃=10,000
P₃=USDT 13
Winning bids are those submitted by participants on time and at the minimum price per contribution token (genesis tranche) or at a higher price when the genesis tranche is full. Thus, it might also be that, especially if demand is high, all winning bids fall at higher prices than the minimum price per contribution token.
The funds are transferability-locked until the funding round ends and released to the issuer at the end of a successful funding round. The protocol automatically issues, distributes and converts the contribution tokens to the participants. If the funding round is unsuccessful because the minimum threshold in relation to the target funding amount is not reached, the funds are returned to the participants, and the contribution tokens are not issued.
The protocol facilitates trustless, direct token transfers, ensuring seamless settlement between network participants in a fully permissionless manner.
There are two ways to participate on Polimec: The One Token Model (OTM), which allows participants to borrow PLMC from Polimec’s on-chain treasury, eliminating the need to hold PLMC, or bonding PLMC, where users use their own PLMC tokens.
The One Token Model, or short OTM, simplifies the investment process on Polimec. It enables full functionality for users holding USDT, USDC, DOT or ETH to invest directly in projects on Polimec. Investors only need a single token (USDT, USDC, DOT, or ETH) to participate. This participation option enables broader market actors access to Polimec deals and streamlines the participation process in return for charging a participation fee, which flows back to the protocol benefitting the PLMC holders.
The main goal is to broaden investor access and enhance the user experience by making the investment process intuitive. Additionally, this is a milestone in Polimec’s advancements towards the launch of the white-label solution. By enabling financial intermediaries like exchanges, banks, and brokers to participate via underwriting, Polimec broadens accessibility and facilitates easier onboarding of institutional players.
Through the OTM, Polimec enables a significantly improved user experience, which leads to higher conversion rates among potential investors. Additionally, the ecosystem will benefit as PLMC holders gain from the small participation fees, introducing an additional advantage for token holders.
The OTM is as straightforward as:
Connect your wallet
Choose the amount to want to invest
Participate
In the background, the PLMC from Polimec's protocol growth on-chain treasury are bonded on the user’s behalf, and seamlessly returned to the protocol growth on-chain treasury thereafter. The multiplier is set to 5, resulting in a vesting period of 8.67 weeks following a successful funding round.
Polimec’s OTM flow:
As Polimec scales, the OTM becomes a cornerstone for institutional adoption, particularly among exchanges, brokers, and banks. The model will support more assets beyond USDT, USDC, DOT and ETH. With the rollout of its multi-chain approach, Polimec enables financial intermediaries to offer compliant, seamless investment experiences tailored to their clients. OTM users bear no risk because the fee only needs to be paid if the fundraising is successful – that is, if more than 33% of the funding target has been met.
Participants can apply in funding rounds based on their participation type. The multiplier then defines the necessary PLMC amount to be bonded and, in turn, determines the duration of the vesting period of their PLMC and mainnet tokens.
The multipliers are implemented considering industry practices and different risk categories of the participant types. The higher the multiplier, the longer the vesting period. For all participants, the vesting period of the PLMC bonded to participate in the funding round starts 7 days after the funding round is completed. Contribution tokens are transferability-locked until mainnet launch of the respective project, at which time the contribution tokens are converted to mainnet tokens. For mainnet tokens, the vesting period starts 7 days after the project’s mainnet launch. For both PLMC and mainnet tokens, vesting periods are subject to individual linear unbonding illustrated below.
Linear vesting schedule:
1
0
2
2.17
3
4.33
4
6.50
5
8.67
6
10.83
7
13
8
15.17
9
17.33
10
19.50
11
21.67
12
23.83
13
26
14
28.17
15
30.33
16
32.50
17
34.67
18
36.83
19
39
20
41.17
21
43.33
22
45.50
23
47.67
24
49.83
25
52
Retail participants can participate with up to 5x the value of PLMC bonded for a funding round. Retail participants determine which multiplier they want to apply when participating in a funding round. Depending on the applied multiplier, retail participants are subject to varying vesting periods on the PLMC, and any mainnet tokens received in return for their participation. The unbonding of the total amount varies between 0-8.67 weeks (with linear unbonding).
Professional participants can participate with up to 10x the value of PLMC bonded for a funding round. Professional participants determine which multiplier they want to apply when participating in a funding round. Depending on the applied multiplier, professional participants are subject to varying vesting periods on the PLMC, and any mainnet tokens received in return for their participation. The unbonding of the total amount varies between 0-19.5 weeks (with linear unbonding).
Institutional participants can participate with up to 25x the value of PLMC bonded for a funding round. Institutional participants determine which multiplier they want to apply when participating in a funding round. Depending on the applied multiplier, institutional participants are subject to varying vesting periods on the PLMC, and any mainnet tokens received as a result of their participation. The unbonding of the total amount varies between 0-52 weeks (with linear unbonding).
Multipliers, vesting periods, and vesting schedules for the different participation categories:
Multiplier
1x-5x
1x-10x
1x-25x
Vesting Period
0-8.67 weeks
0-19.5 weeks
0-52 weeks
Vesting Schedule
Linear unbonding
Linear unbonding
Linear unbonding
