Statemint, Parity Technologies’ generic assets parachain, will be proposed as one of the first “common good” parachains for the Polkadot network. It will provide functionality for deploying assets and entail far lower fees than other solutions.
A generic assets chain would enable a user to deploy an asset once they have deposited DOT (or KSM in the case of Kusama). However, in the case of approval from the relay chain governance, an asset could be deployed without a deposit.
Polkadot ensures that accounts have a minimum balance, called an existential deposit (ED), which allows them to continue operating. If an account falls below the ED threshold, then it is deleted in order to prevent low value “dust” accounts building up.
Users wishing to deploy a particular asset face an extra transaction by having to purchase DOT or KSM, therefore some assets can be termed as “self-sufficient” with the agreement of the relay-chain governance. This allows an asset to have a sufficient amount of value without requiring additional DOT or KSM.
Once an asset is deployed, the creator is able to set up a Maintenance team consisting of an issuer, who mints the new tokens, an administrator, who can freeze or burn any tokens on an account, and a freezer, who can freeze the tokens relating to the particular asset.
If Statemint is accepted as a common good parachain, it will comply with relay-chain governance which holds sway over the direction of the chain and proposals of changes to the chain’s logic and functionality.
The Statemint parachain would enable a whole range of entities, from artists issuing NFTs of their work, to CBDTs (Central Bank Digital Tokens) to have their assets deployed to the Polkadot network.
By allowing users who do not hold DOT or KSM to use these assets, they will be subject to less friction and lower fees. Therefore, Statemint can be seen as an excellent use case for becoming one of the first common good parachains.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.