FAQ: POA20 General Questions
General questions related to POA20
The POA20 Bridge is an interoperability protocol which allows users to convert their own POA Native Tokens from the POA Network onto the Ethereum network in a quick and cost-efficient manner
This new interoperability technology opens up a whole new avenue of solutions for POA users.
POA20 is an ERC20 representation of POA native tokens on Ethereum network. The POA20 token displays the exact same properties as the standard ERC20 token and allows it to be used in all the same places that offer ERC20 compatibility.
No, you do not need to transform your POA native tokens. POA native tokens are used to execute smart contracts on the POA Network, which is a faster and more cost-efficient than Ethereum network. Developers creating DApps on the POA Network will need POA native tokens in order for their DApps to function on the POA Network.
POA20 Tokens are minted to prove cross chain bridges can work in a safe and secure manner with 2 standalone blockchains. We believe the interoperability technology we’ve been able to develop helps open up a whole new avenue of solutions that can be offered to our users. By connecting blockchains with these bridges you allow for a variety of new use cases that never existed before. POA Network truly believes cross chain bridges is a critical step in the right direction as we aim to solve the problem of scalability and connectivity.
No! It’s important to note that there will be no increase in the POA tokens. The existing amount of circulating POA tokens will stay the same and simply be distributed across 2 networks (POA Network & Ethereum network) instead of 1 (POA Network) and this is cryptographically auditable.
POA native tokens live on the POA Network whereas POA20 tokens live on the Ethereum network.
The POA20 Bridge is a public DApp users can access with Metamask. A user can send POA native tokens and receive an equivalent amount of POA20 tokens on the Ethereum network. By toggling the network on Metamask, you’re also able to transfer the other way around and send POA20 tokens to receive POA native tokens.
We have had 4 different independent security audits of bridge contracts, including a smart contract audit, security assessment, and a legal review. Those security audits will be published before the launch of the POA20 Bridge.
Upon receiving your POA20 tokens you no longer own your native POA tokens. The moment you use the bridge to send them to the Ethereum network, they are locked up and stored in the contract address. Thus you effectively have no native POA tokens on the POA Network and now have POA20 tokens on the Ethereum network.
There is no limit, however, there is a daily quota. Hypothetically the entire circulating supply can be bridged, though this likely will never happen since there will be strong use cases to use the tokens on either network.
The minimum amount of POA native tokens to transfer to the Ethereum main network is 300 POA native tokens . The minimum amount in transferring POA20 to POA Network is 750 POA20 tokens.
Since POA Network is sponsoring the fees for the transfer through the bridge, we wanted to impose a minimum amount of tokens to transfer. We calculated the minimum amount of tokens to transfer based on the fees that POA Network is sponsoring.
POA Network is paying and sponsoring the fees for the multiple transactions during the trial period. This will change after the trial period is complete. Users will need to pay a small amount of gas fee when using Metamask for to submit their transactions.
There will 15 confirmations. On the POA mainnet and 15 confirmations on the Ethereum network. On Sokol testnet and Kovan testnet, the test bridge will have 2 confirmations.