About Polkadot Parachain Auction

Polkadot reaches new ATH, Here are the Information about Parachain Auction You Need to Know

On November 1st, Polkadot Council approved Motion 122 and entered the referendum phase, which aims to open parallel chain registration and Crowdloan for the Polkadot network. Once approved, the Parallel Chain team will be able to start parallel chain registration and Crowdloan on November 4, 2021.

Along with the announcement, Polkadot’s native DOT coin has been on the rise for over 100% from a low of $26.05 on Sept. 29 to a new all-time high at $53.35 on Nov. 2.

It’s likely that traders are looking at the success of the parachain auctions that took place on Polkadot’s sister network, Kusama, and expecting the same to occur for Polkadot. Polkadot communities are also looking forward to contributing DOT to Polkadot Crowdloan module to support their favourite Polkadot projects.

Polkadot’s Parachain Auctions Approach

The Polkadot parachain auction is a way for parachains (Substrate-based independent blockchains) to connect to the Polkadot Multi-chain universe via an open, permissionless auction. The purpose of the auctions is to allocate parachain slots to projects that want to operate on either network.

These parachain slots are intentionally scarce to encourage competition and the best possible allocation of fixed Relay Chain resources. By limiting the number of available slots, aspiring parachains must outbid each other to earn a lease, both for the initial launch and again for renewal once the lease period expires (On Polkadot, the maximum lease period is 96-weeks). The competition is a great way to help ensure the quality of parachain projects launched on the Polkadot network.

Projects Eyes on First Batch of Highly Anticipated Polkadot Parachain Auction

Many Polkadot ecosystem projects have made announcements of their participation in the upcoming first batch of five Polkadot Parachain slot auctions starting from Nov. 11. Five winning projects would be onboarded to Polkadot simultaneously on Dec. 15, 2021, rather than being onboarded immediately following each auction.

For one, Clover Finance, a highly regarded blockchain infrastructure platform that focuses on multi-and cross-chain compatibility, interoperability and applications, has just announced their plan to participate in the first batch of auctions. Like many other projects, details of their Crowdloan reward scheme should be released approaching the starting of Polkadot Crowdloan on Nov. 4.