tl;dr; The PolkaX team recommends that the Council starts the Crowdloan in the second auction period (sixth slot and onwards)
Recently, we have received a lot of inquiries from the community about when SherpaX will start Crowdloan. Here are the thoughts and suggestions of the PolkaX team on this matter. The reasons are as follows:
ChainX has long used legal compliance as an important indicator. As China’s regulatory policies are not yet clear, considering the long-term benefits of the project, further actions should be taken after the relevant policies are released. The team expects that the relevant policies will be introduced within 1–2 months.
At present, ChainX is legally in the same position as BTC and is the highest quality project at the legal and regulatory level. The PolkaX team hopes to retain this legal and compliance attribute for a long time and strive for success in a stable manner.
At the initial stage of the Kusama parachain startup, the ecological development will take some time. At this stage, SherpaX’s main mission is to bring BTC into the Kusama ecosystem, and this goal can be accomplished through parallel threads (parathreads). There is no need to rush to obtain a parachain slot.
Coming is currently being actively promoted. When phased results are achieved, SherpaX will receive more support from:
- Firstly, the number of users, the Coming operation team is confident that it will reach 100,000+ users before and after the start of the second batch of auctions;
- Second, the perspective of capital, Coming will bring the capital blessings of the world’s top institutions to ChainX and SherpaX;
ChainX and SherpaX will have excellent development opportunities in the future, regardless of a first or second batch slot.
Time cost factors:
After 48 weeks, the lease period of the first batch of parachains will expire. In the initial stage of Kusama parachains, when there are few ecological applications, the lease period may have been over half before the parachain becomes ecologically viable, and the time cost is huge.
At the same time, it is technically simple to start Crowdloan immediately, but it means that we make our supporters lock their KSM for a long time, with no actual benefit and a big cost for supporters (lack of liquidity of their assets). We hope to help supporters save costs.
At this stage, the cryptocurrency market is in a downturn. For investors, the time to go online will greatly reduce the income. It is not a good time to launch. When the market starts going up and the ecology develops, that’s when a project should launch.
The steps we are taking going forward
The above is our reasoning for our advice to the ChainX Council. Below, we’d like to give you some more information on things you can expect in the short term.
1. Marketing Center
The PolkaX team took the lead in establishing the Marketing Center. One is to improve the communication mechanism between the community and the PolkaX team, and the other is to strengthen the market and business work. Marketing Center plans to introduce 50+ cooperative institutions for ChainX and SherpaX to support ecological construction and future parachain slot auctions. At the individual user level, Coming will reach 100,000+ users in the next three months and introduce them to SherpaX and it’s features. The membership structure and inner workings of the Marketing Center will be introduced in a separate article in the near future.
2. SherpaX network construction
Based on the 2+1 test network, implementation of the testnet results into SherpaX before it starts.
3. XBTC application
After the first batch of parachains goes online, SherpaX will participate in the Kusama ecological construction in a parallel thread, and deliver BTC to the parachains.
Note: Users who lock KSM in advance through various exchanges will still receive KSX rewards as originally agreed.
ChainX, the earliest launched project in Polkadot’s ecosystem, is committed to the research and application of Bitcoin layer 2 expansion, digital asset gateway and Polkadot second-layer relay chain, to realize cross-chain asset exchange, leading the new direction of Bitcoin Cross-DeFi.