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Proposal for First Parachain Auctions on Polkadot Successfully Executed

| Updated
by Steve Muchoki · 3 min read
Proposal for First Parachain Auctions on Polkadot Successfully Executed
Photo: Depositphotos

Following the execution of parachain auctions on Polkadot, the native token DOT jumped approximately 18% on Thursday to trade around $41.56 at the time of reporting.

The Polkadot ecosystem has undertaken a major step towards its goal maturity. Notably, the ecosystem has successfully executed a proposal to enable parachain auctions that have successfully been tested on the sister network Kusama over the years. With the proposal, comes the schedule for the first set of parachain auctions on Polkadot. Additionally, the proposal dubbed referendum #39 is meant to get Council buy-in to a recommended strategy for scheduling auctions on a 3-6 month basis.

Following the execution of parachain auctions on Polkadot, the native token DOT jumped approximately 18% on Thursday to trade around $41.56 at the time of reporting. According to market analytics provided by CoinGecko, Polkadot is ranked position 8 by market capitalization. Notably, the ecosystem boasts $43.4 billion in market capitalization with DOTs daily traded volume at approximately $5.1 billion.

Polkadot was developed to help create a platform for existing blockchains to communicate seamlessly. In a bid to suppress chances of system error, the Kusama network was developed to provide an early incubator platform.

Since its inception, there has been no parachain on the Polkadot ecosystem. Rather, they have been successfully deployed on the Kusama network.

Consequently, the Kusama ecosystem has tremendously grown over the past years to thousands of unique address users. The Kusama native coin KSM that is used for governance purposes traded 17% higher today, around $372.52 at the time of reporting.

The KSK token has a market capitalization of approximately $3.34 billion, thereby ranked position 55 by market valuation. Additionally, the token reported a daily traded volume of approximately $267 million.

Polkadot and the Crypto Market

The upgrade means that Polkadot can now proceed with its initial plan of connecting existing blockchains in the market. Several features are expected to be deployed immediately to enable parachain auctions on the mainnet.

“Based on the performance of parachains on Kusama and the state of audits, the Parity engineering team believes that the code for parachains, auctions, and crowd loans is ready for an initial production release,” the firm noted in a blog post.

Notably, the auctions have been proposed to take place in two batches. Whereby the first batch will encompass five auctions set to begin on November 11. The second batch of parachain auctions is expected to encompass six auctions and begin on December 23, 2021.

The proposal, however, suggests that the number of parachain auctions remains under control and 25% lesser than those on the Kusama network.

“In order to ensure stability guarantees, I suggest along with this proposal that the Council and network governance limit the number of parachain slots on Polkadot to 75% of that on Kusama,” the proposal reads.

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Steve Muchoki

Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Haha, Take it easy. Let us all WIN!

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