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- The second round of Parachain will be live with 12 Parachains participating for 12 weeks.
- The auction will conclude when a candle is out, leaving the players in the dark about when the sale would end.
- Enjin’s ruling token, Efinity, lets users create, trade, and integrate their own NFTs. This new environment has sparked a lot of interest, so it’s one to keep an eye on at the auction. It has also guaranteed NFTs to the top 250 donors.
What is Parachain?
Parachain auctions are auctions performed on the Polkadot or Kusama network, which was created as a fast-moving ‘canary in the coal mine’ for its cousin Polkadot, the Polkadot relay chain, to choose which blockchain will connect to the Parachain slot. When the auction starts, any project on the network can make a bid to the relay chain. In an inappropriate candle auction, Parachains are auctioned.
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In the 16th century, this was a method of auctioning ships in which the winner was the highest bidder when the flame went out, which ends after a random period of time decided by the system. Polkadot auctions work in a similar way, with teams bidding using two pieces of information: their bid amount and slot length. DOT is used by project teams to submit bids (or KSM for Kusama).
Crowdloan enables a team to lock DOT for the duration of the lease. People can contribute to Crowdloan by choosing to lock up their own DOT (KSM) until the lease ends. Teams may reward their contributors in any manner they want, and they can arrange their crowd loan in any way they want, whether it’s hosted natively on Polkadot (Kusama) or a third-party platform.
Polkadot Parachain auction is now in its second round
The team announced on tweeter that the second round of bidding is live.
“The second set of Parachain auctions has started, as scheduled by Referendum 39! Over the following 12 weeks, auctions 6-11 will take place, with a new auction starting every two weeks. There are now 12 Parachains participating!”.
The twelve Parachains involved are:
Ares Odyssey, Crust, Equilibrium, Litentry, Composable Finance, Efinity, Darwinia, Nodle, Coinversation, SubGame Gamma Centrifuge, and Interlay. As the fight for victory heats up, residents are keeping an eye on many projects.
Candle Auction
To secure the process against auction bidding, Polkadot designed a customized version of the candle auction. When buyers know when the auction will conclude, they are more inclined to make a larger bid at the final possible minute and “steal” the auction.
To get around this, the team designed a candle auction, which allows an auction to conclude when a candle is out, leaving the players in the dark about when the sale would end.
The Polkadot para chain auction has a definite start date of yesterday, but after the 25th, the system will randomly determine the exact moment to cease accepting bids, putting bids received after that date at danger of being invalid. Acala, Moonbeam, Parallel Finance, Astar, and Clover were the first-place winners.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
