The highly anticipated Parachain auction process, where projects are allocated slots for construction on the Polkadot cryptocurrency network, will begin next month.
The first auction is scheduled to start on November 11, according to the Polkadot Council. A proposal has been submitted to the governance forum a few minutes ago.
Looking back, the parachain auction process is an important step in realizing the vision of Ethereum co-founder Gavin Wood for an interconnected blockchain framework. (Parachains have already operated successfully on Polkadot’s already active ‘canary’ network, Kusama, with 11 parachain slot auctions since the launch of Statemine June 3.)
“Almost exactly five years after the vision of a heterogeneous multichannel framework was first described in the Polkadot white paper, parachaines are now officially ready to launch on Polkadot,” said Polkadot founder Robert Habermeier, in a blog post shared with CoinDesk.
The last technical steps to accomplish before launching parachaines on Polkadot were the finalization of parachain disputes and the full Polkadot code audit, both now complete, according to Habermeier.
The ongoing parachain Kusama auctions have seen some 2.4 million KSM, Kasama’s native token, contributed to crowdloans with more than 49,000 unique addresses. DOT, the native asset of the Polkadot network, will be used in the next auctions.
So far, a group of decentralized projects have won parachain locations including Decentralized Identity Protocol Kilt and Decentralized Finance (DeFi) building blocks such as Acala’s Karura Network, Moonriver Network from Moonbeam, the Shiden network from Astar and the Khala network from Phala.
Regarding the projects that are leading the queue for a location in Polkadot, Habermeier told CoinDesk via Telegram:
“While I obviously can’t guarantee a particular parachain or try to predict winners, Polkadot’s parachain auction model certainly benefits projects that are able to garner substantial community support through its crowdfunding mechanism. this on Kusama and I suspect we will see a similar enthusiasm for the first parachains on Polkadot. ”
The DOT required to secure a niche is purely based on an efficient market mechanism, Habermeier said. “Having said that,” he added, “Polkadot’s economy is designed in such a way that a 20% DOT target ends up being tied to the name of parachains over time.”
Expected ‘boring’ parachain launch
As with Kusama, each seven-day auction on Polkadot will have a one-day and 9-hour start period, followed by a five-day end period. Auctions end on the seventh day, when the precise time of auction closing is retroactively determined by a Chain Random Function (VRF).
Auction can end at any time during the end period, which prevents last minute “auction snipings” for better price discovery.
The first five projects to win an auction would be integrated into Polkadot simultaneously on December 15, 2021, rather than being integrated immediately after each auction (as happened in Kusama). Each auction on Polkadot will allocate a parachain slot for a total of 96 weeks (divided into eight 12-week rental periods) compared to 48 weeks for Kusama.
Under this proposal, which is currently the subject of a public referendum, the first batch of five auctions will take place with a new auction every week.
A second batch of six auctions will follow with a new auction every two weeks. The second batch of six auctions would be incorporated for rental period seven, which will begin on March 9, 2022.
The weekly sliding auction process starting Nov. 11 will run until the number of parachains on Polkadot does not equal more than 75% of those on Kusama, according to Polkadot representatives.
This conservative approach to how many parachains can be integrated in the first three months is necessary, Habermeier said, because the code in the initial production version is not necessarily completely mature and may still contain undetected bugs.
The launch of the Kusama parachain was a dress rehearsal, Habermeier said, and I hope all chaotic elements are ironed out for the main event.
“Similar to how the launch of Kusama Genesis was a bit chaotic – as advertised – we hope the lessons we learned and the bugs we fixed when launching the Kusama parachaine will lead to a parachaine launch. comparably “boring” on Polkadot, “he said.