Bringing simplicity and trust to complex token ecosystems: Introducing Polkalokr
A next generation all-in one multi-chain, token locking and swapping platform build natively on Polkadot
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Mar 9 · 6 min read
Blockchain technology’s trustless, autonomous infrastructure is disrupting centralized and outdated business frameworks across a myriad of industries. As the landscape matures at such a rapid pace, interest is pouring into the blockchain space from all angles; financial institutions, business owners and the everyday investor alike are all looking to take advantage of immutable and highly interoperable blockchain-based platforms that are changing the way the world transacts.
DeFi in particular does away with intermediaries and centralized institutions, based on open protocols and DApps (decentralized applications). Offering unprecedented transparency, equal access rights, borderless inclusion, DeFi projects are underpinned by blockchain and enforced by code, with transactions executed in a secure and verifiable way.
But all this said, the elephant in the room has yet to be truly addressed when it comes to blockchain technology; there still exists single points of failure that have the power to jeopardize blockchain’s otherwise rock-solid infrastructure.
In this article, we take a look at some of the issues surrounding current token economies and their common weakness: human reliance. We also dive into how Polkalokr plans to tackle these issues head on with a new and exciting model that puts token distribution into the hands of network participants through governance-as-a-service.
Decentralized infrastructures, centralized key holders
The complicated token economies that fuel many of DeFi’s innovative platforms and protocols are often, in contrast to the decentralized nature of blockchain, actually still somewhat centralized due to being managed by the project teams themselves. Token unlocks and distributions are also regularly processed by team members after multi-million dollar raises, meaning that the trustless mechanics that have taken so much effort to build are rendered almost useless.
Through a combination of weak security measures, bad actors and poorly managed treasuries, countless millions of dollars have gone astray over the years in the blockchain and cryptocurrency space. Nearly $2 billion in user funds was reportedly stolen as a result of various fraudulent or malicious incidents in 2020 alone, with some of the most recent incidents resulting in millions stolen in a single attack. Some of these incidents took place as a result of wallet and private key mismanagement, and this all goes to highlight that a change in approach is desperately needed in order to prevent otherwise wholly avoidable losses of user and project funds in the future.
The human touch?
The thriving token economies that make up some of blockchain and DeFi’s most exciting projects are largely what glue projects together. DeFi protocols have seen activity on their networks snowball in recent months, with the total value locked in decentralized finance protocols currently sitting at over $38 billion.
IDOs (initial DEX offerings) have replaced the 2017 ICO mania that saw many millions raised by blockchain projects in the space of a few years, but the token distribution and unlock mechanisms underpinning these token sales have remained largely unchanged. Overall, a human element is still required (more often than not this being the project team) and it must be trusted by investors and network participants to carry out token distribution and treasury management operations successfully, fairly and efficiently.
As we have seen so many times in recent years, when control of tokens and their distribution is in the hands of a central party, things can unfortunately turn bad quite quickly. In DeFi, the now infamous term “Rug Pull” refers to the pulling of liquidity from a project’s trading pair after the project has received considerable outside investment and attention — unfortunately this is still an incident far too prevalent in the space and, when not due to an exploit, is carried out by the fraudulent developers/founders of said project themselves. It leaves the investor with no access to and very little chance of recovering their funds due to the decentralized nature of DEX’s such as Uniswap. This is a prime example of the risks attached with centralized token holding models.
In a perfect world, we would be able to rely on the person/s that are tasked with carrying out these operations, but a combination of huge amounts of money, complex smart contracts, hysteria and human nature can often produce unwanted results. And after all, a system is only as strong as its weakest link. MultiSig, a process that entails multiple signatures from different parties in order to confirm a transaction can somewhat mitigate the risks of a lone bad actor wreaking havoc with user funds, but this still sees the overall control of funds in the hands of a few.
Blockchain is still complicated
On top of the aforementioned risks accompanying many of today’s token models, on the user side of things interacting with tokens is difficult and itself also carries inherent risks; there have been countless instances of a complete loss of funds due to human error or a limited understanding of smart contracts, DeFi protocols and exchanges. But understanding the inner workings of smart contracts takes time the everyday investor often does not have, and this has arguably been one of the main bottlenecks for global adoption of blockchain technology and DeFi thus far.
Code is complex and most users can’t read smart contracts… So how do they know that tokens are being distributed fairly and according to plan? Inflation models and token unlocks need to be more understandable for everyone involved and, until platforms and protocols offer easy to navigate and transparent platforms that even those brand new to blockchain can get to grips with, worldwide adoption will continue to be suppressed and user funds will continue to be irreversibly lost in the ether (pun intended).
Introducing Polkalokr
Polkalokr is a highly customisable escrow platform that will put power back into participation. As a highly customisable token locking platform for token economies, Polkalokr offers a suite of modular building blocks for all needs. By creating a seamless, omni-channel digital platform with User Experience at its core, we plan to restore trust and simplicity to complex token ecosystems, with a multi-chain token escrow platform that puts token distribution into the hands of network participants.
We’re building the most versatile, multi-chain token locking token solution available on the market; taking the complex and difficult-to-understand mechanics required to suit any token locking requirement and packaging them inside a simple to use interface. Thanks to Polkalokr’s fully customizable and flexible framework, blockchain and DeFi economies can now offer investors, validators and network participants a host of payout options, release schedules and monetising opportunities, with no more reliance on centralized token holders or third party escrow services.
With a wide array of features and use-cases that blow competitors out of the water, Polkalokr is being built natively for Polkadot from day one. We are serious about security, scalability and cross-chain functionality, and our experienced developers are building in Rust with access to the Polkadot Testnet.
Polkalokr Products
The Polkalokr platform consists of two main products: Lokr and Swapr. Combined, they offer token economies and users within them comprehensive options to lock, distribute, monetize, insure and swap the tokens that underpin the DeFi and blockchain protocols of tomorrow.
Lokr
The most versatile, multi-chain token escrow in the world.
- Highly user centric
- Cross-chain support through Polkadot
- Fully customizable, flexible release schedules
- Event-based token unlocks
- Optional Insurance Products
- Monetization of locked tokens
Swapr
The P2P, cross-chain token swapping protocol
- Cross-chain atomic swaps with privacy & multi-sig options
- Instant, or event based execution via Lokr Oracle feeds
- Swap any tokenized digital asset
Enterprise Focused Integrations
As interest in blockchain and DeFi from the world’s largest businesses only grows, Polkalokr will on-board Enterprise partners to integrate with our products and services and streamline the introduction of token economies to existing businesses.
We’re providing one of the missing links to global blockchain adoption — A trustless, flexible and easy to use token locking and swapping platform that cuts out unnecessary and risky human reliance and replaces it with a simple and versatile decentralized solution with near-endless use cases for those looking to harness the still largely untapped power of blockchain and digital assets.
About Polkalokr
Polkalokr is the first all-in-one, multi-chain token locking & escrow platform with built-in privacy functionality. Our products help build trust within the Defi space by removing the human element and focusing on governance through code, with a seamless, omni-channel digital experience platform accessible via mobile, tablet and desktop.
