Issuers
Issuers are projects raising funds on Polimec. A trusted third party attests issuers and links the credentials to the projects’ DID. The issuers can submit a project on Polimec by providing all required information as described in the funding application.
After providing all required information, the project goes through the evaluation process, where evaluators signal that they expect a specific project to complete the funding round.
Once the issuer has secured the required backing from evaluators, the funding round begins in which retail, professional, and institutional participants can participate.
The following thresholds apply to the total amount raised relative to the target funding amount, which determine the project’s potential outcomes.
Possible outcomes under the various thresholds:
| Thresholds | Outcome Project | Outcome Evaluators | Outcome Participants |
|---|---|---|---|
| ≤33.00% | Rejected (autom.) | Slashed | Refunded |
| 33.01%-75.00% | Project’s Choice | Slashed | Project’s Choice Declines Funding=Refunded; Accepts Funding=Receive Contribution Tokens |
| 75.01%-89.99% | Project’s Choice | Neither Slashed, Nor Rewarded | Project’s Choice Declines Funding=Refunded; Accepts Funding=Receive Contribution Tokens |
| ≥90.00% | Accepted (autom.) | Rewarded | Receive Contribution Tokens |
Should the total amount raised fall at a level of 33.00% 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 within the range of 33.01% to 75.00% of the target funding amount, the protocol gives the project the opportunity to decide whether or not to accept the funding. Regardless of the decision, evaluators get slashed 20% of their bonded PLMC. Contingent upon the project’s decision to accept or reject the funds raised, the participants either receive contribution tokens or are refunded.
Should the total amount raised fall within the range of 75.01% to 89.99% of the target funding amount, the protocol gives the project the opportunity to decide whether or not to accept the funding. In this case, evaluators are not slashed nor do they receive rewards. This incentivization punishes evaluators only for qualitative misjudgement of projects but not for minor quantitative miscalculations. Contingent upon the project’s decision to accept or reject the funds raised, the participants either receive contribution tokens or are refunded.
Should the total amount raised fall at a level equal to or exceeding 90.00% 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.
The project has 72 hours after the end of the funding round to either decline or accept the funding. If no decision is made by the project within the 72 hours, the funding is automatically accepted. The applicable settlement as a result of the project’s decision will take place 7 days after the end of the funding round.
Last edited on