This is a follow-up to [discussion thread #2395](https://polkadex.polkassembly.io/post/2395) by [@0e2438f5e0df40f4a49b6a7ee](/user/0e2438f5e0df40f4a49b6a7ee) 

**Amount:** Increase the earmarking from 150,000 PDEX to 225,000 PDEX for a future, post-crowdloan spend proposal to cover crowdloan rewards in PDEX

**Short Description:** The Polkadex parachain lease secured in auction #16 thanks to the original Polkadex crowdloan in 2022 ends April 9th, 2024. Polkadex has been amassing support for its parachain slot renewal bid, heading into auction #65 with a commanding lead… **until today.**


### **Background**

**[An anonymous, self-funded crowdloan has bid 50,095 DOT at once](https://parachains.info/auctions) to push Polkadex to second place with 47,575 DOT contributed as of the time of writing.** 

With auction #65’s ending period commencing on Monday March 18th at 8pm UTC, Polkadex must reclaim the lead before then (and remain in the lead throughout) for optimal chances at an auction #65 win. If auction #65 does not go our way, we only get one more shot (auction #66) before the existing Polkadex parachain lease expires and potentially impacts operations.


### **Proposal**
In order to maximize Polkadex’s chances to renew its parachain lease and thus ensure operations remain unaffected, we are proposing an increase of 75,000 PDEX to be added to the [previously earmarked amount of 150,000 PDEX](https://polkadex.polkassembly.io/post/2395), for a total maximum spend of 225,00 PDEX.

The extra PDEX will allow for the rewards cap of 50,000 DOT to be extended to 75,000 DOT, ensuring DOT contributions keep flowing in beyond the previous cap of 50,000 DOT and giving Polkadex better options to compete for a bid against anonymous whales. 

Please use the poll function to show your support or lack thereof for this proposal. 


### **Contribute to the Polkadex Crowdloan**
If you’re seeing this, your support is much appreciated. 

You can [contribute to the Polkadex Crowdloan here](https://polkadex.trade/crowdloans). 

If you need some DOT, you can use Polkadex Orderbook to purchase DOT and then use it to contribute to the Polkadex Crowdloan. I made a tutorial for that [here](https://youtu.be/ICGhvMUkxFU?si=HgnZeH8XsIp367vd).
 
**This is not a treasury spend request** 

Like the [previous discussion thread](https://polkadex.polkassembly.io/post/2395), the current proposal does not request any funds but aims only to increase the previously earmarked total to up to 225,000 PDEX for future spending on crowdloan rewards. An actual request will be put forward once the crowdloan has ended, the lease has been renewed, and the final amount of PDEX rewards corresponding with the total contributed DOT amount is determined.

URGENT: Increase PDEX Rewards for Crowdloan #2 Treasury Proposal

This is a follow-up to my previous [discussion thread #2404](https://polkadex.polkassembly.io/post/2404). 

### Context

As mentioned in the previous discussion thread, Polkadex is now behind Litentry and anonymous crowdloan 3368 in the [parachain auctions.](https://parachains.info/auctions)

Over the past few days, the Polkadex team has been hard at work creating a plan to secure an auction win in either auctions 65 or 66 in order to claim a parachain slot renewal.

We've taken a look at your feedback on discussion thread #2404 and also had a look at the competitive landscape. In this scenario, this measure is just one of many measures which will allow us to counter existing bids. Due to the nature of the competition, self-funded and anonymous, some facets of our plan will remain undisclosed for the time being. Not this measure, though.

Since we are almost at the 50,000 DOT rewards cap, one of the most obvious measures to adopt is to increase that cap in order to continue to incentivize community contributions beyond 50,000 DOT and make sure contributors continue to be rewarded.

Some of you have also vouched for an increase in the rewards ratio. While this has not been ruled out just yet, this specific discussion just deals with boosting the DOT rewards cap. Any potential changes to the rewards ratio will be communicated here. 


### Aim

Increase the earmarking from 150,000 PDEX to 300,000 PDEX for a future, post-crowdloan spend proposal to cover crowdloan rewards in PDEX. This allows for a 2x increase in the DOT rewards cap from 50,000 DOT currently to 100,000 DOT: a good target to defeat bids at current contributions of 70,000 DOT and ~52,900 DOT, respectively.


### Let's do this!

Going forward, we are looking to keep you informed as much as possible as this has been a community-led effort to get here so far. We've almost reached the 50,000 DOT rewards cap together and look forward to growing our DOT contribution totals in the coming days. However, some actions might require us to play by the competition's rules, so forgive any secrecy or smoke and mirror tactics in advance. We've got a solid plan, now it's time to execute.


Crowdloan follow-up: Increase rewards cap to 100k DOT

<h3 id="quickintro">Quick intro</h3>
11,138,343.343 PINK is owned by Polkadex thanks to the creation and distribution of PINK.
After gathering feedback from <a href="2398">the PINK allocation discussion thread</a> and after discussions between the council and the Polkadex Core Contributors and conversations with the PINK Working Group, Polkadex has finalized its planned allocation for PINK on Polkadex. Context
As the network that is home to Polkadex Orderbook, the order book-based decentralized exchange for Polkadot, Polkadex&rsquo;s value proposition for tokens is clear: provide real-time, non-custodial spot-trading markets for governance-approved token pairs. The PINK/USDT market was approved in March and launched on Polkadex Orderbook soon after.
However, due to a lack of organic liquidity as well as the absence of active market making on the PINK/USDT pair, the spot market has not been able to support the high levels of trading volume it is capable of providing. Due to this, no official announcement of the launch of PINK/USDT has been made to date.
Polkadex received its share of PINK a couple of weeks ago, which means we are now able to allocate PINK as we, as a network, see fit, based on the value we can add to the PINK community and wider Polkadot ecosystem.
A majority of Polkadex Council Members believes the best way for Polkadex to add value for the PINK community and PINK traders is to allocate 100% of PINK towards PINK/USDT liquidity on Polkadex Orderbook, thus providing a liquid, non-custodial, CEX-like spot market for PINK traders.
<h3 id="allocationplan">Allocation Plan</h3>
Summary
100% for liquidity and market making:
<ul>
<li>40% to be deployed for immediate liquidity boost to <a href="https://orderbook.polkadex.trade/trading/PINKUSDT">PINK/USDT on Polkadex Orderbook</a></li>
<li>60% to be reserved for liquidity rebalancing, additional liquidity boosts, and/or market maker fees</li>
</ul>
<a href="https://docs.google.com/spreadsheets/d/1BxDIAuJlSVMojg4JH8XDHeSZRS7mvCV-zltS-32-IDI/edit?usp=sharing">Breakdown of PINK allocation</a>
<img src="https://i.ibb.co/ZKyNWgv/Polkadex-PINK-Allocation-Plan.png" alt="" width="640" height="320" />
<h3 id="details">Details</h3>
Liquidity boost
The current plan is to deploy 40% of Polkadex&rsquo;s share as a dual-side liquidity boost for PINK/USDT and integrate a market-making bot to the trading account associated with the multi-sig address listed in the Custody section of this post.
Reserves
60% of the total allocation will be reserved for liquidity rebalancing, additional liquidity boosts, and/or market maker fees as follows:
Rebalancing
<ul>
<li>20% of the total allocation, or a third of the total PINK reserves, will be split between PINK and USDT and will be reserved for any required rebalancing of the initial liquidity.</li>
</ul>
Dedicated Market Maker
<ul>
<li>If the above market-making bot integration plan proves to be inadequate or inefficient, dedicated market-making services might be required for PINK/USDT. In this case a share of the reserves will be allocated towards the provision and retention of a professional market maker.</li>
<li>An estimated number of months of market-making services based on current PINK prices is provided in <a href="https://docs.google.com/spreadsheets/d/1BxDIAuJlSVMojg4JH8XDHeSZRS7mvCV-zltS-32-IDI/edit?usp=sharing">the allocation spreadsheet.</a></li>
</ul>
Additional Liquidity Boosts
<ul>
<li>If dedicated market maker services for PINK/USDT prove to be unnecessary, the remaining two thirds of PINK reserves (AKA the remaining 40% of Polkadex&rsquo;s total PINK share) will be used for additional liquidity boosts and rebalancing.</li>
</ul>
Liquidation of PINK
The allocation plan resulted in a total liquidation of 3,341,502.90 PINK into USDT for USDT-side liquidity on PINK/USDT (2,227,668.60 PINK) as well as USDT reserves for liquidity rebalancing (1,113,834.30 PINK). Liquidation took place on the best-priced markets available and in swap tranches to minimize price impact and maximize the amount of USDT extracted for liquidity.
<h3 id="custody">Custody</h3>
The PINK (and the USDT) allocated towards the PINK/USDT Liquidity Boost (40%) and the liquidity rebalancing reserves (20%) has been sent to a multi-sig wallet controlled by the PDEX holder-elected Polkadex Council Members: esqBxvoNGrZtYPaLMYCFNHLvxy6ekhD14kiVt2EcXp48g29gh
The remaining 40% of reserves is currently held by a Polkadex Core Contributors wallet on AssetHub (13HD1ktcqwaRQ3vsihhqh2R2qB4kS8mca4gXhJ6T8recrdMv) and will also be transferred to the Polkadex Council Members' custody either on AssetHub or on Polkadex.
<h3 id="reporting">Reporting</h3>
Previous transfers and liquidations may be tracked on <a href="https://docs.google.com/spreadsheets/d/1BxDIAuJlSVMojg4JH8XDHeSZRS7mvCV-zltS-32-IDI/edit?usp=sharing">the allocation spreadsheet</a> and via on-chain explorers. PINK (and USDT) balance transfers and rebalancing activities will be added to the sheet with links to on-chain transactions for anyone who wishes to track Polkadex&rsquo;s PINK holdings. This report will also contain any relevant details on the use of the reserves allocation.