A token minting system is coming to the Polkadot blockchain ecosystem, promising to be a leaner, meaner version of Ethereum’s ERC-20 standard, the mechanism that launched a thousand token sales.
Announced Wednesday, Polimec, the token issuance and transfer framework for Polkadot, is being launched by the team behind blockchain identity protocol KILT.
The reasons for creating a community-owned tokenizing system native to Polkadot are manifold, not the least of which are the surging gas costs associated with transactions on Ethereum blockchain, said Ingo Ruebe, CEO of BOTLabs and project lead for KILT Protocol.
Normally a startup project working on Polkadot might attempt to finance their runway by issuing an ERC-20 token on Ethereum that can be listed on exchanges. As well as removing the costs of transferring ERC-20’s around, the bigger picture for the Polkadot ecosystem is the explosive growth that having a standard to build tokens on top of Ethereum brought to the second-largest public blockchain.