Polimec (Polkadot Liquidity Mechanism):

A Fundraising Mechanism for the Polkadot Ecosystem

Polkadot’s success depends on a strong, healthy and vibrant ecosystem to gain significance. On one hand, projects will need significant funding due to long runways. On the other hand, token holders who supported early projects need a mechanism to re-allocate their support to new projects.

Polimec was concepted in 2020 by BOTLabs GmbH, the initial developer of KILT Protocol, to address these ecosystem needs. The original Polimec whitepaper was published in September 2020 and introduced an open-source mechanism for supporting early-stage projects in the Polkadot ecosystem. Using Polimec (Polkadot Liquidity Mechanism), projects would be able to access critical development funding. KILT credentials would identify project supporters in KYC and AML processes, and the supporter would register a DID (decentralized identifier) on Polimec.

Now a dedicated team with extensive experience in blockchain and financial services has taken on further development of Polimec and the launch of the network in late 2023. This team has evolved Polimec into a decentralized community-driven funding protocol to accelerate the Web3 ecosystem, which is reflected in the new Polimec whitepaper. The protocol will enable fundraising in a transparent and regulatory compliant manner, aligning stakeholder incentives during and beyond the fundraise. 

As in the original concept, Polimec will utilize the KILT blockchain for on-chain credentials for KYC/AML processes, issued by trusted third parties. In this way, the Polimec use case is a mechanism to accelerate the adoption of KILT credentials and DIDs (decentralized identifiers) and increase the traction for KILT Protocol.

Visit the Polimec blog post and website to find out more about the new team and whitepaper.