As the launch date for parachains approaches, a new initiative is building a decentralized financial (defi) index token that tracks Polkadot projects aimed at helping investors diversify their holdings through a single instrument.
Six projects offer soft pledges to join Polkadot Index Network Token
With growing interest in Polkadot and its new parachains, the blockchain’s original token has become the source of insane speculation in recent months, joining the list of the top ten cryptocurrencies by market cap.
Now, with paracha launches imminent for several projects, two organizations are taking steps to help improve access to the ecosystem’s opportunities through the Polkadot Index Network Token (PINT).
Chainsafe, a protocol and infrastructure developer, has partnered with Stateless Money, a stakeout service provider, to bring this new index fund and associated token to fruition.
The PINT token will be administered by a seven-member expert group called the PINT Council and a Constituent Committee composed of members from each project listed in the index. These two groups oversee the index and assume specific roles such as determining the composition of the index.
Projects are already lined up to join this new initiative, both as an index component and as part of the Constituent Commission. So far, PINT has received soft pledges from major ecosystem projects including Acala, Equilibrium, Hydradx, Litentry, Moonbeam and Plasm, further increasing the appeal of the index token.
A new standard in Defi
From its inception to the present, this new index represents a very unique venture in the blockchain ecosystem. Staker DAO, an on-chain governance protocol, put its Polkadot Index Network Token proposal to vote in its community. Despite being for the Polkadot ecosystem, votes were cast for both the Ethereum and Tezos blockchains, which exploit competing ecosystems.
In the time since Staker DAO first applied for an index token feasibility study from Chainsafe and Stateless Money in late 2020, a Staker DAO governance proposal was submitted in March and approved by the community in early April.
This approval established that Chainsafe would be the party responsible for developing the token’s substrate pallets over the next three months. In the meantime, Stateless Money will take the lead in coordinating the project.
For participants in the Polkadot ecosystem and outside investors, this new initiative promises significant benefits. In terms of investor benefits, the idea of gaining broad, diversified exposure to high-profile Polkadot projects without the need to allocate separately to each project is tempting.
On the other hand, Polkadot projects can use PINT by allocating some part of their respective parachain tokens. This entitles parachains to assistance from the PINT Treasury, which can help fund expensive Parachain Lease Offerings. This service can also help parachains manage native token volatility.
Do you see yourself using PINT as an investment vehicle? Let us know in the comments below.
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