The much-anticipated launch of parachains on the Polkadot (DOT) network is nearly here. The buzz has driven Polkadot costs to $50 on Nov 1, a new all-time high.
Like its “canary network” Kusama, auctions and crowdfunding should be held for projects competing for a parachain slot.
The Polkadot team tweeted on Nov 1 that the proposal allowing crowd loans and parachain enrollment had passed the council and gone to a public referendum.
“If passed, parachain teams can register their parachain and open their crowd loan on Nov 4, 2021, at approx. 19:15 CET.”
On Oct 13, Polkadot announced it was ready to start auctioning parachains. The first auction should begin around Nov 11.
Parachain Contestants Ready
The crowd loan process allows contending projects to amass funds in DOT tokens to bootstrap their parachain auction. The auctions function on a candle system where the winner is the highest bidder when the candle goes out.
Those supporting the project will need to secure their DOT tokens into a sponsored account for a designated period. Rewards for doing so are generally airdropped tokens from the project contending in the auction.
Several projects are competing for the initial slot. For example, Ethereum Virtual Machine compatible platform Moonbeam, which enables programmers to port from Ethereum to Polkadot with little difficulty.
Victors of the first 12 Kusama parachain auctions are likely to be among the first competitors. Overall, there are more than 100 projects, according to Parachains.info; however, only 12 have won auctions for Kusama parachains.
Development and testing will continue on Polkadot’s sister network seeing as Kusama approved 48 more parachain auctions over the coming year. It held its first one in June.
DOT Briefly Flips XRP
Polkadot has increased by 55% in the last month. DOT also briefly surpassed the marketplace cap of XRP at $52 billion, taking the 7th spot. It has since fallen behind, now trailing XRP by around $500 million.
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