Q: What is POL?
Serving the role of points/credits for users on Pool-X, POL is one of the most crucial components in the pool’s ecosystem. POL, abbreviated from Proof of Liquidity, was born to cope with the inadequate liquidity of staked crypto assets. It helps to record the liquidity certificate flows and works as the payment method for liquidity bidding. Perhaps most substantially, POL is the benchmark asset of liquidity pricing on the platform, as well as the medium for liquidity certificate records. It is for these reasons that it is named after Proof of Liquidity.
The total supply of POL stands at 1 billion. Due to their nature, zero reservations for decentralized points/credits are to be provided to the team or any individual upfront. With its strict mechanism of participation proof, the rights and interests of the POL holders will be secured only on the back of deep involvement and substantial contribution to the ecosystem. That said, the vesting and distribution policy is also designed to serve as encouragement for actions that will benefit the growth of the platform.
On Pool-X, POL bridges between coins that are staked and those in circulation, paying with which allows the users to obtain instant liquidity even when the crypto assets are still in staking. Additionally, POL can be applied in scenarios such as search optimization and staking node establishment as payment, which will ultimately be burnt to benefit the potential appreciation of POL.
Moreover, as the underlying infrastructure technology develops, the POL public-chain, within its ecosystem as well as interoperating across various chains, will run as the foundation for the staking certificate flows.
Q: How much is the total supply and distribution of POL?
The total supply of POL is 1 billion. It is composed of three parts: LockDrop (2%), Staking (78%) and the budget system (20%). The Staking part includes Staking Mining (50%） and the POL PoS Scheme（28%）.
Q: How much is the initial circulating supply of POL?
20% of the LockDrop shall be constituted as the initial circulation position. It is 4 million.
Q: What is POL used for ？
- POL will be paid by the liquidity-bidder to the liquidity-provider in the Liquidity Marketplace.
- Node search optimization
- The governance of POL public-chain
Q: What is the working process of POL?
The POL working process includes LockDrop, Mining and the Budget System.
Q：What is the value of POL?
The price is market-oriented, meaning, it is determined by the supply-demand relation of liquidity. Generally speaking, demand for liquidity is positively correlated to the cryptocurrency market volatility, which encourages users to withdraw the assets to trade for potential alpha returns. Accordingly, the demand for POL fluctuates along with the liquidity demand: stronger demand is likely to boost the price of POL; in contrast, weaker demand may indicate a slimmer price premium.
Q: Is POL used for transaction fees? Is there any discount on transaction fees?
A 10% transaction fee will be charged. We are sorry to inform you that there are no discounts at the moment. Any updates will be notified later.
Q: Does POL burn quarterly like KCS?
We have a POL burning plan. As for more details, please pay attention to the follow-up announcements later.
Q: How to get POL allocation?
- Users can receive a certain amount of POL by depositing the supported token to the required LockDrop address after selecting the Lockup period.
- By participating in Staking Mining, the user enjoys a LockDrop allocation equalling 50% of the daily POL allocation
- Users who hold POL can obtain extra POL by participating in lockup and voting activities of POL nodes.
- For users who hold locked tokens and need to redeem the staked tokens in the short term, they can proceed to place an order in the liquidity trading market and exchange the tradable cryptocurrencies from the current suppliers by paying an extra amount of POL.