Decentralized oracle network Umbrella released specifics of its latest initial DEX bid, or IDO, which announced that 110,000 applicants had signed up for the Polkastarter offer.
The Feb. 9 deal saw 10 times as many hopefuls sign up as 1,000 randomly picked slots open, with 2.5 million UMB tokens being allocated to only 625 participants during the auction.
The IDO has earned 72.5 Ethers worth around $250,000. In an announcement shared with Cointelegraph, Umbrella points out that the selling of tokens was meant to reduce the accumulation of tokens by big investors by taking “deliberated steps to ensure strong participation at fair prices.”
“This offer represents another key step in bringing decentralized oracle networks to an industry where demand for high-quality external data is growing exponentially,” said Umbrella’s founding partner, Samuel Kim.
“We firmly believe in the power of community governance and decentralized solutions, and we will use this critical moment to move forward toward the next steps in Umbrella Network’s evolution.”
Umbrella claims that its delegated evidence-of-stake consensus model guarantees a highly cost-effective transfer of results. Through using a cooperative network of nodes, Umbrella argues that it will independently verify “thousands of transactions at the price it would take to confirm a single transaction [in other networks”/using centralized networks].
The project uses a two-layer scaling approach that leverages the technologies of Merkle Tree to integrate multiple data points into a single on-line transaction in order to reduce the high cost of trading on the Ethereum mainnet. Umbrella is planning to operate on Polkadot in the future.
Polkastarter is a cross-chain DEX intended to promote auctions of tokens and pools. The platform has recently become more popular as an IDO platform, due to its support for cross-chain token swaps, fixed-price offerings and KYC integration.