Moonbeam Crowdloan

Previously we already talked about Moonbeam, but for those who do not remember, Moonbeam is the leading Ethereum-compatible smart contracts platform in the Polkadot ecosystem. The network will not only give protocols multi-chain access to the Polkadot ecosystem but will also provide the easiest development environment and the richest set of integrations for developers on Polkadot. By making it easier for developers to build Moonbeam, the network can very quickly attract and incorporate new and existing applications into the Polkadot ecosystem.

What is Moonbeam Crowdloan?

The Moonbeam Crowdloan is a fantastic opportunity for members of the Moonbeam community to support the launch of the Moonbeam network on Polkadot. The pre-registration process is a way for those who intend to participate in the crowdloan to register their DOT address and complete the Moonbeam Crowdloan Terms of Use in advance of the official opening of the crowdloan. Since the start of the crowdloan itself will not occur until November 11, 2021 — the start date of the first auction — this gives community members the opportunity to complete part of the process ahead of time.

For Polkadot and Kusama, Crowdloan is a way for new projects to get the support they need from users around the world to join the Kusama or Polkadot network as a parachain. The idea is that you need to block your Kusama KSM or Polkadot DOT tokens in favor of a certain project for a certain period of time, usually 1 or 2 years — this is called “Crowdloan contribution”. Typically, during this lock-in period (or after) you are eligible to receive a reward. This reward is usually the project’s own token.

While they are locked, the provided KSM/DOT tokens can be used to cover the cost of a parachain lease (the amount needed to protect a parachain slot on Kusama or Polkadot networks), but they are never directly available to the project’s parachain. If the project cannot win the auction, the funds are returned to their owner and unlocked.

Crowdloans are a great opportunity for people to support a project they are passionate about and earn tokens in this network, 100% safe, the only risk is fluctuations of the token which is blocked, but considering the history they usually only grow.

https://moonbeam.network/education/what-is-a-crowdloan/

How will it work?

To achieve broad participation in the Moonbeam network, Moonbeam will use crowdloan to fund its auction bid. This will use the Crowdloan pallet built into the Polkadot relay chain. 10000000000 GLMR tokens are allocated to reward crowdloan participants. After a successful campaign and deployment of the Moonbeam parachain on Polkadot, rewards will be distributed in the chain: 30% of the rewards can be claimed immediately; the remaining 70% will be transferred over the term of the lease in a linear, block-by-block fashion.

The Moonbeam team plans to apply for all 8 rental periods of 12 weeks each, they will cover rental periods 6 through 13, or 96 weeks.

The Moonbeam Crowdloan will be available in two ways: through an app created by the Moonbeam Foundation, which will be available when the crowdloan opens, or through approved third-party exchanges to be announced in the coming weeks. Pre-registration through this app is only necessary if you plan to participate through the Moonbeam app. If you change your mind or decide to use a different DOT address, you will need to repeat the pre-registration process.