Polkadot, the creators of the DOT token, has laid out a schedule to debut Parachain slot auctions following a unanimous approval from the blockchain’s on-chain governance council members.
The first of the auctions is slated to begin on the 11th of November 2021, according to the Polkadot Council.
The news marks a landmark achievement as it fulfills the final core technical element of the whitepaper published five years ago.
What are parachain slot auctions?
Parachains are uniquely distinctive layer-1 blockchain platforms that operate laterally alongside the main Polkadot network, in addition to being tethered to the Polkadot Relay Chain.
Parachain slot also acts as an access key because it is required by a developer in order to build or create on the Polkadot blockchain. Due to the fact that many developers intend to build on the Polkadot blockchain, and rather than give the developer with the most funding a parachain slot, the Polkadot team came up with parachain slot auctions as a method to distribute the available slots in a more equitable manner.
During a parachain slot auction, DOT holders can bond their cryptocurrency to support the project that they believe should receive a parachain slot. In return, the project may commit to airdrop tokens (or provide other rewards) to their supporters.
Simply put, parachain slot auction is where projects are allocated slots for building on the Polkadot cryptocurrency network and it is an important milestone in realizing Ethereum co-founder Gavin Wood’s vision for an interconnected blockchain framework.
As previously mentioned, the first Polkadot parachain slot auction of the initial batch is slated to begin on the 11th of November 2021 and will continue at a rate of one per week for five consecutive weeks until the final auction on the 9th of December 2021.
The initial bidding period will last for two days, followed by a five-day ending period. Two unique features about the proposal of this auction schedule are that unlike the immediacy of Kusama’s project onboarding after auctions, Polkadot auctions will be held in transit for a period of one month. In addition to this, there will be a 75% capacity of projects to that witnessed on Kusuma, in a bid for quality over quantity.
Polkadot founder, Robert Habermeier stated, “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 DOT token is trading $41.22, up 20% as of the time of this writing.