Polkadot native token, DOT, hit a new all-time high of $51.47 a few hours ago as excitement over its first ever parachain slot auction, which is just 9 days away.
Last month, the Polkadot ecosystem 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 you should know
The Polkadot network is a sharding, multichain protocol designed to facilitate cross-chain transfers of any data or asset type and the project is focused on increasing interoperability between separate networks across the blockchain ecosystem.
As previously mentioned, the price rally is largely due to the upcoming launch of parachain auctions on the Polkadot protocol. It’s likely that traders are looking at the success of the parachain auctions that took place on Polkadot’s sister network, Kusama, and expecting the same to occur for Polkadot.
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 like 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.
The Polkadot official Twitter handle tweeted yesterday that, “The motion to enable parachain registration and crowdloans has passed Polkadot’s council and gone to a public referendum. If passed, parachain teams will be able to register their parachain and open their crowdloan on Nov. 4, 2021 at approx. 19:15 CET.”
DOT now trades $48.41, down 5.77% from its all-time high, as of the time of writing this report.