Plasm Network Lockdrop, a way better airdrop
Plasm is going already through the second Lockdrop which will end up at the end of September. Let’s get over the process to give you a clue how to participate in the Lockdrop and to receive PLM tokens just for locking your Ethereum.
What is a Lockdrop
You probably know what airdrop is and I am sure you went through at least one of the airdrops in the past. Lockdrop is a brand-new token distribution mechanism, which tries to put you at lower risk but ensures the fairness of the process for the participants.
So, what is Lockdrop? Participants lock a specific token (for example Ethereum or Bitcoin) to the smart contract that will hold the tokens for a predefined time period. For this action, they will then receive a certain number of tokens which is proportional to the value of the locked token and the time period of the lock.
Utility networks need economic incentives for the participants. The first project using lockdrop was Edgeware and it was a great success so we can expect to see this token distribution model to play a bigger role in the future.
Plasm Network is using a modified version of the lockdrop used in Edgeware which is called the Multi-Lockdrop. In a nutshell, the Multi-Lockdrop is a type of lockdrop that will happen multiple times with multiple tokens.
Some other distribution models are ICOs or airdrops. Those models bring more attention from price speculators, who dump the coins on the market whenever they get a chance. In the airdrop, because there is no deposit, the participants do not take that much interest in the project as they do in the lockdrop.
The lockdrop is a promising distribution model with some great features that are making it more useful than more traditional models.
Plasm is a scaling Layer2 platform on Polkadot
Plasm is a fully-functional scaling infrastructure on Polkadot supporting cutting edge Layer2 technologies such as Plasma and Rollups. Plasm Network became the first Parachain in the Polkadot Parachain test network and it will compete in the slot auction in the future, so it can provide interoperability with other blockchains who are other Parachains or bridged blockchains.
Plasm Network will enable layer 2 technology on top of the Polkadot Network so it can be used by its parachains and solve the scalability issue in the future.
One more interesting info about Plasm, recently they received a grant from Web3 Foundation that will help implement some new features including Optimistic Virtual Machine (OVM) on Plasm Network, which is designed to support all layer2 protocols including Plasma in Ethereum 2.0 and Lightning Network as well.
Plasm is having a second lockdrop
The first lockdrop period occurred in April of this year. The second Lockdrop began on 31st August and will finish on 30th September at 2:00 CEST. Till that date, you have the chance to participate in the lockdrop.
How much PLM tokens you will get?
In the second lockdrop, you can lockup Ethereum. The lockdropped amount of PLM tokens will vary for each period you will lock up your funds. You can choose between 30 days period, 100 days, 300 days, or even 1000 days!
There is a calculator for your exact expected return on this link, but if you want to know roughly how much you will get, here come numbers.
For 30 days lockup period, you will get a 24x rate, which means for 1 ETH you will receive 4,012.102 PLM.
For 100 days lockup period, your rate will be 100x. In that meaning, for 1 ETH you will get 16,717.093 PLM.
The lockdrop rates for each duration differ in this particular way:
30 days is 24x
100 days is 100x
300 days is 360x
1000 days is 1600x
There’s going to be a third Lockdrop as well, at that time, you will be able to lockup DOT tokens which will then serve in the Parachain auction.
Link to the Plasm Network lockdrop
By using the lockdrop model as the initial distribution mechanism of Plasm Network, the most concerns from the other distribution’s models such as airdrops or ICOs should be mitigated.
As Plasm Network is a very promising project, we encourage you to be part of the Lockdrop and get advantages to yourself of this new distribution model. And don't forget that Plasm Network wants to become one of the first Polkadot parachains. And that is a thing!
Stay tuned for further information about the Polkadot ecosystem projects here on Medium, in our Twitter channel Polkadotters as well as in our Facebook Group Polkadot unofficial!