Categories
Crosschain Polkadot

What is the DOT token used for?

How the DOT token is used Polkadot. Polkadot is a proof of stake blockchain that enables fast transactions and crosschain transfers.

What is DOT?


DOT is the native token of Polkadot network.

DOT token is used for


  • Governance
  • Staked for running the network (proof of stake).
  • Bond to connect a parachain to Polkadot.

More here.

How could value accrue to DOT token?


Fees

  • Network fees (can be changed through governance)

Locking tokens

  • Parachains
  • Proof of stake

What is Polkadot


Polkadot is a proof of stake blockchain that enables fast transactions and crosschain transfers.

How it works


Polkadot takes the approach of several blockchains connected to the meta-blockchain. Contrary to for example Ethereums approach of one blockchain and tokens launching on top of it.

Design Features

  • Interoperability
  • Fast
  • Scalable
  • Shared security
  • Upgrades without forks

The Polkadot Network

  • Relay Chain – Polkadot mainchain
  • Parachains – Sovereign blockchains that can have their own tokens
  • Parathreads – Blockchains connected with a pay-as-you-go model.
  • Bridges – Allows all the above to interact with other chains like Ethereum and Bitcoin.

Consensus

Nominators – Select trustworty validators and staking dots.
Validators – Secure the relay chain by staking dots.
Collators – Collecting shard transactions and producing proofs to validators.
Fishermen – Report bad behavior to validators.

Token issuance


Total Supply: 1,073,655,814

DOT Presale price: $0.29

Docs


Similar projects


DOT Token price


Crypto Taxes

Yeetfi uses Koinly (affiliate) for taxes on crypto. We tried several services and Koinly was the only one that actually worked.