DOT, the native token of Polkadot, achieved a new all-time high of $51.47 just a few hours ago, fueled by anticipation for the company’s first-ever parachain slot auction, which is only 9 days away.
Following unanimous consent from the blockchain’s on-chain governance council members, the Polkadot ecosystem drew out a timeline to debut para chain slot auctions last month.
According to the Polkadot Council, the first of the auctions will take place on November 11th, 2021. The announcement is significant because it completes the whitepaper’s final key technical part, which was published five years ago.
What you should know
The Polkadot network is a decentralized, underlying blockchain system that allows for cross-chain exchanges of any data or asset variety, and the project’s goal is to improve interoperability between different blockchain networks.
As said before, the price surge is partly owing to the Polkadot protocol’s forthcoming introduction of parachain auctions. Traders are likely to be looking at the success of the parachain auctions on Polkadot’s sibling network, Kusama, and anticipating something similar to happen on Polkadot.
Parachains are layer-1 blockchain systems that, in addition to being linked to the Polkadot Relay Chain, operate laterally alongside the main Polkadot network.
Because a developer needs it to build or create on the Polkadot blockchain, the parachain slot also functions as an access key. Because many developers want to build on the Polkadot blockchain, rather than giving the developer with the highest financing a parachain slot, the Polkadot team devised parachain slot auctions as a way to more evenly distribute the available slots.
DOT holders can bond their money to support the project they believe should win a parachain slot during a parachain slot auction. In exchange, the project may promise to give supporters airdrop tokens (or other benefits).
“The motion to permit para chain registration and crowdloans has passed Polkadot’s council and gone to a public referendum,” the official Polkadot Twitter account announced yesterday. If approved, parachain teams will be able to register their parachain and start their crowdloan on November 4, 2021 at approximately 19:15 CET.”