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    Gate.io Blog Cryptopedia: An Auction for a Polkadot Parachain Slot

    Cryptopedia: An Auction for a Polkadot Parachain Slot

    18 May 18:08
    Polkadot Slot refers to Polkadot Parachain Slot, which is the interoperability between the Polkadot network’s relay chains and parallel chains. The Polkadot network is linked to other blockchain projects through multiple parallel chains to increase transaction throughput. The relay chain is the central chain of the Polkadot network, which serves to verify the parallel chains and provide consensus and security. The parallel chains need to be connected to the Polkadot relay chain through "slots".

    The relationship between slots, parallel chains, and relay chains can be analogized as follows: In the relationship of home appliances, relay chains are like circuits, slots are plugs, parallel chains are various home appliances. Home appliances need to be connected to slots in order to operate inside the circuit ecology.

    Why Polka slots

    Due to the limited resources of the Polka network, the relay chain cannot maintain the same level of security as a large number of parallel chains, so the slot is designed as the "access point" of the parallel chain. Initially, the number of slots is very limited, and users need to bid for slots by participating in auctions and locking a certain amount of DOT tokens to win a slot.

    How to Participate in the Slot Auction

    The auction of slots is also known as the auction of parachain slots. Currently, the auction of slots will be conducted through candle bidding, and the initially proposed auction mechanism is as follows: once every two weeks, 4 parallel chain slots will be auctioned. It is worth noting that the slot auction is not permanent, but is spread out over six months with two years as the lease period. Polkadot will choose the bidder with the highest bid amount as the final winner based on different lease periods and bidding offers.

    The two-year lease period is divided into four phases. For example, Party A, Party B, and Party C all participate in the auction. Party A wants the full two-year lease period and bids 65 DOT per half-year; Party B wants to lease for the first year, i.e. the first two phases, and bids 100 DOT per half-year; Party C wants to lease for the second year, i.e. the next two phases, and bids 40 DOT per half-year.
    There are two options for a full two-year lease: Party A alone for two years, with a total rent of 260 DOT; Party B and C together for two years, with a total rent of 280 DOT. Based on the highest bid amount, Polkadot will decide if Party B and Party C are the winning parties.




    Related information:

    Parachain Auction Starting Date: Polkadot has not officially given a specific date for the auction. Gavin Wood, the founder of Polkadot, responded to this question by saying that "the Kusama parallel chain auction will precede the Polkadot parallel chain auction". Some media believe that Polkadot may open the slot auction in November or December.



    *Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.

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