Polkadot has been walking into the limelight lately. The digital asset is rising on the charts through word of mouth by traders and investors in the space. As the launch of the parachain auctions near. Consecutively, the DOT price hit its ATH of $50.87 a couple of hours ago.
DOT hodlers have pinned high hopes on the asset, and the analysts have also set their targets. Polkadot team has made announcements regarding the parachain auctions and crowd loans on a public platform.
Parachain Auctions Will Be a Game Changer for Polkadot!
The Polkadot team has made announcements stating that the motion to enable parachain registration and crowd loans has been passed by Polkadot’s council. If passed by public referendum, the team will be able to register their parachain and open their crowd loan on the 4th of November 2021.
The parachain auctions start from the 11th of November 2021. The ending period starts on November 13th, and the bidding ends on the 18th of November. Onboarding of winning parachains is scheduled for the 17th of December. For the period December 17th, 2021 to October 20th, 2023.
Each auction takes place over the course of 1 week and assigns a total slot duration of 96 weeks, which is divided into 8-12 weeks. The schedule is tentative, based on fixed block numbers. To bid in an auction, parachain teams agree to lock up their holdings for the time period. Where the digital asset cannot be used for other activities.
The ending period of the auction begins a day and 18 hours after the start of the auction. And lasts until the end of the one-week bidding period. However, the endpoint could be anytime in the time frame. And would be done automatically and randomly.
Polkadot’s Crowd Loan
Participants of crowd loans need to agree to lock up a portion of DOT for the duration of the parachain slot lease period. After which they can be unlocked. If tokens are locked due to staking, users will need to unlock them in advance of the campaign. The unlocking period is currently at 28-days.
Crowd loan contributors get their DOT back at the end of their tenure. And parachain teams can choose to reward them in various ways. Such as the network’s native token, certain goods, among others as directed by the project teams. And accepted by the community members.
The makers aim at approximately 100 parachain slots to be made available on Polkadot. Which will take place at a gradual pace. Similar upgrades are ongoing in most of the other platforms like Cardano. And hence may also believe that ADA could give a good fight to Polkadot to grab the attention of the traders for the investments.
Collectively, Polkadot parachain auctions could revolutionize the platform and also give a good boost to the DOT price. And hence the target of $100 could be achievable by the end of 2021 or by the first quarter of 2022.