Starting today we are participating in our first Polkadot Parachain Slot Auction - vying for a spot in Polkadot ecosystem. This is a huge step forward for us, it will allow us to scale efficiently and securely, while accessing the suite of advanced governance tools that the Polkadot ecosystem offers.
Read our post "On Polkadot" for more on why we made this decision.
This is what you need to know:
- Our auction will last from December 28 to Jan 03
- If we do not win the slot for this auction, we just keep trying until we get a slot
- Our classification as a crowdloan is simply to allow our investors a portal to contribute DOT, we are not offering any incentive to contributors beyond the satisfaction of aiding our mission, as we are self-funded. If you want to contribute for purely altruistic reason, go here
- We are para ID 2097
If you're not already part of it, please join our discord here to follow the auction seamlessly.
Finally, if you're brand new, here is what a Parachain Slot Auction is, in a nutshell:
- Polkadot is a decentralized ecosystem of interoperable blockchains. The vision is to have 100 parachains (individual blockchains running in parallel with Polkadot and Kusama networks) connected to a central Relay Chain. This number was selected to create both abundance and tight competition.
- Parachain Slot Auctions are held on the Polkadot Relay Chain to determine which blockchain will connect to the next available parachain slot. Once the auction begins, every project in the network can submit their bid to the chain, with their DOTs tied up for the entirely of the auction and lease (teams are not really “spending” DOT, rather forgoing an opportunity cost because they can't use it for other things).
- Parachains are sold in the format of “candle auctions” (read this article for a deep dive into the fascinating history of this technique) - which means that the auction is terminated at a random time. The randomized ending encourages projects to deliver their best bids earlier, rather than chancing a final-hour bid that may or not make it through. There is an opening period (1 day + 18 hours) and an ending period of 5 days.
- There are two types of bidding: private bids and crowdloans. Crowdloans allow a team to crowdsource DOT to aid its auction, allowing participants to lock up their DOTs until the end of the auction (or auction and lease). Direct bids are made by the team itself. It is not possible to do both at the same time.
- If the project wins the slot auction, the DOT is locked up until the end of the lease period, (96 weeks) after which the DOT will be return to the account it came from.
Happy New Year!