Fundraising in crypto has often favoured insiders, leaving retail investors behind. Polimec changes that.
Built on Polkadot, this decentralised fundraising protocol gives every verified user, from individuals to institutions, a chance to access early-stage Web3 projects on fair, transparent terms.
It automates the entire process, adds regulatory compliance, and removes the need for middlemen. Polimec has already helped raise over $30 million and is quickly becoming a trusted launchpad in the Polkadot ecosystem and beyond.
What is Polimec?
Polimec, short for Polkadot Liquidity Mechanism, is a decentralised funding protocol built as a parachain on Polkadot. Its core mission is to simplify and open up early-stage fundraising for Web3 projects while maintaining full regulatory compliance.
Source: Polimec
The idea for Polimec began in 2020 with KILT Protocol, a project known for identity and credential verification.
In 2023, Polimec was established as an independent entity under the Polimec Foundation. By May 2024, it will officially launch on Polkadot after securing the 51st parachain slot through a private crowdloan of over 2 million DOT.
Source: Polimec
Polimec is fully integrated with Polkadot’s infrastructure, using its Relay Chain for security and XCM for cross-chain communication. This ensures interoperability with other parachains, such as Moonbeam and Astar.
The protocol supports fundraising in DOT, PLMC, stablecoins, and even fiat through Banxa, with EVM and Wasm compatibility expected by late 2025.
The key to Polimec’s approach is its use of decentralised credentials. These are verified by trusted third parties, like Deloitte, and issued through KILT Protocol.
This system ensures all participants, whether projects, evaluators, or investors, can interact safely, pseudonymously, and in a way that complies with KYC and AML standards. No personal data is stored on-chain, and participants choose what to share.
By March 2025, more than 10 projects had raised over $30 million using Polimec. Notably, platforms like Apillon and Mandala Chain have already used it to fund their growth.
The growing adoption suggests a shift in how projects and communities approach fundraising, moving from closed-door deals to transparent, rules-based systems that are accessible to all.
How Does the Fundraising Work?
The fundraising journey on Polimec consists of five clear phases: credential verification, project application, community evaluation, funding rounds, and token distribution.
Source: Polimec
It starts with credentials. Every participant must complete KYC/AML through a trusted third party.
This process results in a reusable, pseudonymous on-chain credential stored using the KILT protocol. Whether you’re a project issuer, evaluator, or funding participant, this credential is your key to interacting with Polimec.
Once verified, a project can apply to raise funds. They submit documents like their whitepaper, tokenomics, and roadmap, along with funding parameters such as accepted currencies and minimum targets. This data is publicly viewable, helping contributors make informed decisions.
The project is then assessed by community evaluators. These evaluators bond PLMC tokens to signal confidence in a project. If the amount bonded equals 10% or more of the fundraising target, the project moves forward.
Evaluators are rewarded with contribution tokens if the funding is successful. If not, some of their bonded PLMC may be slashed. This creates real accountability and discourages blind support.
The funding round itself is divided into two parts. The auction round comes first, where professional and institutional investors place bids. These bids help determine a fair token price.
The average price from this auction then becomes the fixed rate for the next stage, the community round.
In the community round, retail and other verified participants contribute at the established price. This ensures that everyone, regardless of size or status, pays the same rate and receives fair allocations.
The contribution process is done using participation currencies approved by the issuer, such as DOT or stablecoins.
If the round meets its target, Polimec automatically issues contribution tokens to all participants. These tokens act as a placeholder for the actual project tokens, which are distributed once the project’s mainnet goes live.
The entire process is fully automated and transparent. If a round fails or is declined by the project, all contributions are refunded.
How Can I Get in Early on Projects Through Polimec?
Getting involved in Polimec starts with obtaining your credentials. This one-time KYC process allows you to explore projects, support them early, or contribute directly during funding rounds.
To participate, you bond PLMC tokens. The amount you can contribute is tied to the value of your bonded PLMC and a multiplier. Retail participants start with a 1x multiplier, which can grow up to 4.11x based on their activity.
Source: Polimec
Professionals and institutions have access to higher multipliers, up to 10x and 25x, respectively. These multipliers increase your contribution power, but they also extend the vesting period for your tokens.
For example, using a 1x multiplier comes with no vesting. But a higher multiplier means longer lock-up times for both PLMC and the project’s tokens. These rules ensure participants commit with a long-term view and prevent sudden market dumps after launch.
Evaluators play an equally important role. They assess projects during the early stages and help decide which ones deserve to raise funds. By bonding PLMC and providing honest evaluations, they can earn contribution tokens if the project succeeds.
A social credit system tracks evaluator performance over time, allowing others to follow those with strong track records.
Evaluators can also link their pseudonymous IDs to public profiles, such as Twitter or GitHub. This builds transparency and encourages deeper community involvement.
Over time, participants come to trust and rely on well-known evaluators, strengthening the overall quality of the ecosystem.
The PLMC Token
PLMC is the native token of Polimec. It powers staking, governance, project evaluation, and funding participation.
Source: Polimec
As of March 2025, the circulating supply is around 80 million PLMC out of a total of 100 million. The token peaked at $1.50 in mid-2024 and currently trades at $0.60, reflecting broader market corrections.
The distribution is split across key areas. Crowdloan rewards account for 30% (vesting over 96 weeks), with another 20% allocated to the team, 20% to ecosystem development, and 30% reserved for the Treasury.
The token’s inflation rate is set at 3% per year and is used to fund the parachain slot and reward contributors.
Staking PLMC supports the network by nominating collators and earns 10% to 15% APY. Unlike many other chains, there is no slashing for stakers. Users also benefit from token-burning mechanisms tied to transaction fees, helping reduce supply over time.
PLMC holders can vote on protocol upgrades and funding proposals through Polkadot’s OpenGov system.
This includes deciding how to allocate Treasury funds, which are worth around $20 million. Governance is an essential part of the ecosystem, ensuring that the platform evolves in line with community needs.
Conclusion
Polimec offers a much-needed shift in how Web3 fundraising is done. It combines automation, community evaluation, identity verification, and fair token distribution in one decentralised platform.
Projects can raise capital without high fees or third-party interference. Contributors benefit from equal access and better protection.
With over $30 million already raised, Polimec is showing that funding can be open, compliant, and truly decentralised. Whether you’re building or investing, it is a platform worth exploring as Polkadot enters its next chapter.