Polkadot Announce Parachain Auction Process – DOT Price Jumps
Polkadot announced the much awaited parachain auction process – DOT price up 16% on a daily chart.
The much-anticipated parachain auction process, where projects are allocated slots for building on the Polkadot cryptocurrency network, kicks off next month.
The first auction is planned to take place on November 11, according to the Polkadot Council. A proposal was submitted to the governance forum.
The parachain auction process is an important milestone in realizing Ethereum co-founder Gavin Wood’s vision for an interconnected blockchain framework.
Parachains have already been running successfully on Polkadot’s already-live “canary” network, Kusama, with 11 parachain slot auctions taking place since the launch of Statemine on June 3.
Polkadot founder Robert Habermeier said:
“Almost exactly five years after the vision of a heterogeneous multichain framework was first outlined in the Polkadot [white paper], parachains are now officially ready for launch on Polkadot.”
The last technical steps to complete before launching parachains on Polkadot were the finalization of parachain disputes and Polkadot’s full code audit, both of which have now been completed, according to Habermeier.
DOT race
The ongoing Kusama parachain auctions have seen some 2.4 million KSM, Kusama’s native token, contributed to crowdloans by more than 49,000 unique addresses. DOT, the native asset of the Polkadot network, will be used in the upcoming auctions.
A gaggle of decentralized projects have won parachain slots so far, including decentralized identity protocol Kilt and decentralized finance (DeFi) building blocks such as Acala’s Karura Network, Moonbeam’s Moonriver Network, Astar’s Shiden Network and Phala’s Khala Network.
In terms of which projects are at the front of the queue for a Polkadot slot, Habermeier told CoinDesk via Telegram:
“While I obviously can’t vouch for any particular parachain or try to predict winners, Polkadot’s parachain auction model certainly benefits projects that are able to gather substantial community support through its crowdloan mechanism. We saw this on Kusama and I suspect we will see similar excitement for the early parachains on Polkadot.”
The DOT required to obtain a slot is purely based on an efficient market mechanism, said Habermeier. “That said,” he added, “the economics of Polkadot are designed so that a target of 20% of DOT end up bonded on behalf of parachains over time.”
DOT Price Rallies
DOT price rose 25% over 24 hours and went past $42 for a moment. On a weekly chart, DOT saw 36% gains. That’s the most expensive the asset has been since May, when it reached an all-time high of $49.35, according to CoinGecko. At the time of writing DOT trades for 41.33 with 16% gains on a daily chart. It’s market cap is $40.8 billion.
