Polkadot Parachain Auctions are here! The Polkadot blockchain started the first process of parachains auctions for its network, with various projects participating in them, relying on their communities to seek to gain a slot within the Polkadot multi-chain ecosystem.
The multi-chain nature of Polkadot allows you to build an ecosystem of individual blockchains that run in parallel, called parachains or parachains, connected to a main blockchain, called Relay Chain, a fact allows to give scalability, characteristics and unique development to each chain for the development of a particular project and its needs.
As part of the development of Polkadot and the integration of these parachains, an auction mechanism is established, where projects that seek to link as a parachain to Polkadot, can compete with each other to win their space, so that only well-funded projects and with an active community they will be worthy of connecting to the blockchain infrastructure.
If you want to know more about Polkadot parachains auctions and their sail auction format, we recommend you read our article about it. In addition, you will be able to see when the next auctions are scheduled.
First Parachains Auction Starts in Polkadot
This November 11, formally marks the beginning of the first Polkadot parachain auction, where different projects are bidding for the next seven days to obtain a slot and lease the parachain for periods between 12 and 96 weeks, to formally connect to starting next December 17, 2021.
It should be noted that to participate, projects can do so through direct bids or offers in DOT, Polkadot’s native cryptocurrency, or also, through crowdloans, a kind of financing through public loans requested from the community, where the Users can use their DOT balances to boost bids for a project, who can offer rewards and returns in their native tokens, for example, as an incentive.
In this sense, the projects that are currently taking part in the first Polkadot parachain auction are doing so through the crowdloan format. In this way, 10 projects are currently bidding with their crowdloans to take over the slot, being led by the smart contracts platform focused on interoperability, Moombean, who leads the auction with more than 22.3 million DOT, which they currently represent. over a billion dollars, as the data from Polkadot.js.
A little behind, comes the open and decentralized finance protocol between chains, Acala Network, which has just over 17.6 million DOTs blocked, more than 803 million dollars. Behind, other projects such as Astar, Paralell Finance and Manta are established, which complete the first five positions in terms of total funds raised. In total, the 10 participating protocols have raised more than $ 2.5 billion in DOT, according to data from Parachains.info, as of press time.