• Emerging Proof-of-Stake blockchain protocol ParallelChain has launched its Community Round.
• The token sale will enjoin participation after the completion of KYC.

The ParallelChain (XPLL) protocol has announced the launch of its community round as it seeks to expand the reach of its tokens to all of its backers. The startup highlighted that this move is the natural next step for the protocol after years of concentrating efforts on developing the Proof-of-Stake (PoS) mainnet and adding more functionalities to the protocol’s offerings.

As detailed by ParallelChain, the community round will end on April 30, a sale that will mark more than a month of public sale. The ParallelChain community round will also be trailing the largely successful Private Round that was conducted more than a year ago. As detailed by the protocol, its community has grown over time, and expanding the token sale will enjoin additional participation that can help solidify the protocol’s security.

A total of 6,250,000 XPLLs will be made available for the community round and each token will be priced at $0.76 which will bring the overall sales cap to $4.75 million.

Token sales comes off as one of the viable ways protocols raise money to inject into developing the underlying protocol and spearhead some proactive developer activity. Most of the most prominent blockchain protocols including Ethereum (ETH) and Tezos (XTZ) conducted token sales, generally called Initial Coin Offerings (ICO) at the early stages of their development.

ParallelChain Imposes Necessary Limits

While ParallelChain is generally recording a promising interest from prospective buyers, the protocol has set some limits in a bid to ensure that the community round is as spread to prospective participants as possible.

The protocol said the minimum amount that users can contribute is pegged at $500 while no one participant can purchase more than $10,000 worth of XPLL tokens. Users can participate in the community round with Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT).

A very necessary limit, as defined by the vesting of the protocols, will see investors get only 35% of the amounts purchased when the protocol distributes the tokens. This distribution event is slated for the first week of May 2023. The rest of the tokens will be vested depending on the purchase amounts. 

As a rule, the more investments made, the longer will the vesting period be, a move that is designed to prevent massive selloff and impact on the price of the XPLL.

Need for KYC

With growing regulatory concerns bordering the broader digital currency ecosystem since the start of this year, ParallelChain said users will only be able to gain access to the community round after completing a mandatory Know-Your-Customer (KYC) procedure.

Just like a regular KYC process, prospective participants will need to share pictures of their legal ID and live photo of their face. Participation in the community round will be predicated upon the approval of the KYC.