NewsFlash Articles Data Fundraising BlockBeats Pro

On the eve of the contention of a hundred schools of thought, 8,000 words explain "Polca Parachain Slot Auction"

Read this article in 56 Minutes

With the long-term support of the Web3 Foundation, the collaborative efforts of the project parties in the ecosystem, and the investment in the layout of capital institutions, Polkadot's future will surely be prosperous.

Original Author: Azuma

Original Source: Odaily Planet Daily

In the past year, the blockchain industry As always, rapid change. Bitcoin is still Bitcoin, but many of the "mainstream currencies" we have known in the past can be said to be gone. The price of the currency is sluggish, and the ecology is lacklustre. Instead, a batch of new potential projects have been replaced.

Among them, the most striking one is Polkadot.

Image from: Parity Technologies

The popularity of Polkadot lies not only in The strong appeal of the founder Gavin Wood, DOT has ranked among the top five market capitalizations shortly after its launch, and it is also due to the enthusiasm and enthusiasm of developers who agree with the Web 3.0 vision to invest in the Polkadot ecosystem. Outside of Ethereum, there is almost no public chain like Polkadot. Like Polkadot, it has such a vibrant community scene at the beginning of its launch.

The big exam is coming! According to the official information disclosed, Polkadot will officially launch the parachain slot auction as soon as possible in the next few months. As one of the most critical milestones in the Polkadot roadmap, the auction is closely related to all parties in the ecology and has long been the focus of attention.

Gavin Wood said on October 10 that the Polkadot mainnet It is planned to launch the parachain at the end of the year or early next year, and will be tested on the Kusama network before that.

Parity Technologies Asia Technical Director Jia Yaoqi also told Odaily Planet Daily, Polkadot has been debugging the parachain function through the dedicated test network Rococo, which will soon release a new v1.0 version.

Auction is approaching, although there are many uncertainties about the specific plan However, in the world of blockchain, if you fall behind, you may lose the opportunity to grasp the future. An important juncture is approaching, and many projects and the capital behind them are ready to compete for the top spot.

Recently, Odaily Planet Daily interviewed dozens of deeply involved Developers, projects, investors, exchanges and mining pools of the card ecology, we will systematically sort out the "Polkadot Parachain Slot Auction" from different perspectives, and analyze the following issues in detail:

What is Parachain Slot Auction? Why is the project going to auction? And how to participate? What are the different incentives given by each company? What do investment institutions, exchanges, and mining pools think, and what roles do they play? What impact might the auction have on DOT?

(The content of this article is long and there are many dry goods, it is recommended to save it.)

Tell you what a "parallel chain" is from the basic structure of Polkadot

Before explaining what is called a parachain slot auction, let’s briefly introduce Polkadot’s basic vision and structure. (Friends who already understand this part can skip to the next paragraph to read.)

"Cross-chain" is the core vision of Polkadot.

In order to realize this vision, Polkadot designed the "relay Chain (Relaychain) + Parachain (Parachain)" double-layer structure. The relay chain is responsible for the verification of information interaction and maintaining the security of the entire network; the parachain is responsible for handling various "trivial matters". Different parachains can focus on different businesses and serve different needs.

Theoretically, any two parallel chains in the future can be directly or borrowed The following chain completes the cross-chain interaction.

Image from: Plasm Network

Note: Based on different areas Block generation logic, parachains can be divided into homogeneous parachains and heterogeneous parachains. Isomorphic parachains are created based on the Cumulus consensus engine, have the same block generation logic as Polkadot, and can interact directly with each other; although heterogeneous parachains follow different block generation logics, they can be accessed through a "bridge structure" , and then use the relay chain to realize the interaction with other parachains.

The operation of the parallel chain needs to consume certain network computing resources, so There is an upper limit to their number. Gavin Wood said at the Polkadot China Tour event in July this year that the upper limit of the number of parachains will be around 100.

For the project party, it needs to rent through bidding Parachains can only be accessed through limited slots.

Because the early system optimization work has not been completed, the network load capacity It needs to be improved, and it is expected that the number of slots that will be opened in the initial stage will not be too many.

Jia Yaoqi explained to Odaily Planet Daily that in addition to participating in the auction, Some lightweight projects can actually choose other ways to access the Polkadot network, such as using parallel threads (parathread), or directly deploying to some parachains that support smart contracts, but these methods need to wait for the parachain to be real It will be gradually realized after landing.

Note: Parathreads are designed for those who cannot afford slots Auction fees, or the design of projects whose business model does not require long-term rental slots, can be simply understood as "shared parachains", which support multiple projects to share some specific parachain slots on a block-by-block basis.

Why do we need to auction "parallel chain slots"?

After explaining the basic concepts, let’s briefly analyze what the slot auction means for Polkadot What is going on, why project parties are preparing to actively participate, and why investors will pay attention.

For Polkadot:

The parachain slot auction is an important milestone in Polkadot's roadmap, which means that Polkadot's cross-chain vision has really begun to land. It can enrich the usage scenarios of DOT. It will affect the DOT locking structure and total locking rate of the entire network.

For the project party:

Successfully winning the slot means that the project will be able to share the security of the Polkadot network and achieve cross-chain interoperability with other projects. Since key information such as the number of initially open slots and the release interval have not yet been determined, winning the first batch of slots will bring a certain first-mover advantage to the project, allowing the planned development work to be advanced as soon as possible. For some isomorphic projects that are ready but have not officially launched the main network, the main network can be launched synchronously when the slot is taken, and the verification mechanism of Polkadot can be directly used. This will reduce the development work of starting the main network first and then changing the code access. Therefore, the auction is also related to the main network launch process of such projects. Taking the early slot itself is a high-profile marketing promotion, which is conducive to the later ecological construction. Other access methods such as parallel threads are more suitable for lightweight projects, and development still takes time. Projects that urgently need access in the short term can only choose to participate in parachain auctions.

For investors:

The IPO design of the slot auction (initial parachain crowdfunding, which will be explained in detail below) provides a new way to participate in the Polkadot ecosystem. What kind of incentives, so the income from participating in the auction is more imaginative than NPoS pledge (hereinafter collectively referred to as "node pledge"). For investment institutions that have already deployed the Polkadot ecosystem, helping invested projects win slots as soon as possible can indirectly obtain greater benefits. How to auction the "parallel chain slot"?

Let’s talk about the auction method again, its design is quite novel, and it also contains many mysteries .

According to the now disclosed plan, Kusama will be ahead of Polkadot net to test slot auctions.

Before the auction is officially launched, some system-level parachains will be released first. The system-level parachain is also a parachain in nature, but it will not participate in the auction. Its main significance is to reduce the burden on the relay chain, and generally will not generate new tokens.

About the auction, the matters needing attention include: ;

The slots are only rented and not sold. The auction offers bids for four lease terms, each 6 months in length. Projects that intend to participate in the auction can bid for a single or multiple adjacent lease periods. After simple mathematical calculations, it can be known that there are a total of 10 combinations.

The auction will only release one parachain slot each time, and the release of the next slot will have a certain time interval (the interval is still undetermined, it may be several weeks).

Reduce bid sniping with candle auctions. The slot auction will be divided into two phases - safety period and random period. DOT can be freely pledged in the two stages, and the auction will not end within the security period, but will drop the hammer at any time according to the random number on the chain after entering the second stage. In order to successfully win the slot, projects need to stake as many chips as possible before entering the second stage.

The slot auction has designed the "Initial Parallel Chain Crowdfunding (IPO)" scheme, allowing projects to Leverage, that is, through a series of incentives to attract others to lock more DOT to themselves. In turn, this also opens the door for investors to participate in the auction, and you can choose the project you want to support in the auction module to lock your own DOT.

The slot auction will only lock DOTs and will not sell them. After the lease period ends, all DOTs participating in the auction will be refunded. DOTs that have participated in regular pledges cannot participate in the auction at the same time. Conversely, DOTs that have participated in the auction can no longer receive regular pledge rewards—instead, they receive different rewards from various auction projects.

On the whole, Polkadot’s parachain slot auction is a good way to enter this ecology The project provides a brand new token distribution mechanism.

The process of auction is actually a process of community building. Investors choose After locking DOT to a certain project, the principal will be locked during the entire leasing period, and the subsequent incentive income often needs time to be released gradually, and the interests of both parties will be bound for a long time.

In the arena: a hundred schools of thought contend

What is certain is that most projects that intend to build in the Polkadot ecosystem will try to bid before the parathread lands.

As mentioned above, the design of the auction rules is open, and the project party External leverage can be leveraged through the IPO model, and incentives are not limited. Therefore, it is expected that the project parties will show their talents - come up with the most attractive incentives to leverage the DOT chips in the hands of more investors. This makes us believe that the subsequent "contending of a hundred schools of thought" must be very interesting.

At present, many projects have announced that they will participate in the auction, but No full incentive package has been announced. Tong Lin, the founder of Phala, told Odaily Planet Daily that part of the reason is that the auction is a game process, and disclosing the complete plan too early will cause him to fall into a passive position. It's like the "flop" stage in Texas Hold'em, and it's not yet time for the second round of opening and calling.

Based on this, Odaily Planet Daily had the honor to interview Acala, Phala, ChainX, Darwinia, Bifrost, Stafi, Litentry and other projects. As contestants who are about to participate in the auction, their answers will reveal various potential possibilities in the slot auction competition.

Acala: will fully bid for the first parachain and start a new Web 3.0 DeFi ecosystem

Currently, there is a high voice in the ecology, and it is one of the most competitive projects in the first parachain auction It is the DeFi platform Acala. Phala founder Tong Lin also said that there is a high probability that the first parachain will be taken over by Acala.

Acala council member Fuyao said that the Acala network and its advanced Karura will participate in the auction on Polkadot mainnet and Kusama network respectively, striving to become the first parachain on Polkadot mainnet and Kusama network.

The reason why Acala will try its best to bid for the first slot, Part of the reason is that the auction is directly related to its mainnet launch process. Fuyao said that Acala will create a founding block simultaneously after successfully bidding on the slot, and officially launch the pioneer network Kararu and the main network Acala.

On October 27th, Acala held a private meeting on Karura Part of the incentive plan for Karura’s online bidding for the Kusama parachain was disclosed at the conference. For example, the earlier the KSM (Kusama token) is locked or the longer the lock time, the greater the incentive may be obtained; when Karura successfully bids for the slot, The KAR (Karura token) in the reward part will be released linearly according to the lock cycle and quantity, but all KAR can participate in network governance and the use of other network functional rights. Acala also said that the details of the bidding package, such as the scope of the lease period, will be determined by investors who support Acala's bid.

Fuyao also mentioned that the Acala test network Mandala has been launched on Polkadot Cross-chain interactions with Laminar, Plasm, Interlay, Phala, Darwina and other projects have been successfully tested on the parachain test network Rococo.

After the mainnet launch, Acala is scheduled to launch in 2021 In the first half of the year, the derivative product PDOT was launched to release the liquidity of DOT locked in the auction and enrich the gameplay for users to participate in slot auctions.

Phala: We want to take the first slot on the Kusama network

The privacy infrastructure Phala has announced the general plan for slot auctions, and is currently discussing whether to set a hard cap and how to motivate tokens Release and other details.

Phala will allocate a certain proportion of the native token PHA as a successful auction Rewards, the current plan is Kusama slot allocation 0.5% - 1% (5-10 million), Polkadot main network slot allocation 3% - 5% (30-50 million). Tong Lin said that the specific reward parameters may still change. In the new white paper released in September, Phala reserved 9% of PHA for Polkadot ecological construction and slot auction, and 1% of PHA for community and testnet incentives.

Image from: Phala Trusted Network

Lin Tong said that Phala plans to "compete for three guarantees and ten" in the slot auction on the Polkadot mainnet, but hopes to compete for the first parachain on Kusama. In this regard, Phala’s advantage is that it will directly take out the main network token (PHA) to motivate investors who support the project to bid for Kusama slots, while most other projects in the ecology will only take out the first token during the Kusama network auction. Web tokens.

Phala will also communicate with some centralized institutions (such as exchanges), but how to allocate the incentive pool ratio between centralized institutions and retail supporters still needs to be carefully considered. Tong Lin explained: "Cooperating with centralized institutions can obviously help the project quickly obtain a lot of chips, but too much reliance on centralized institutions is not conducive to the community building of the project itself.

"In addition, the current DOT pledge rate of 66% in the entire Polkadot network is actually a relatively healthy state. There are not many DOT chips in the hands of the exchange. Therefore, it will cause harm to the entire Polkadot ecology. As a project party, we have the responsibility to balance the incentive pool distribution of centralized institutions and retail supporters.”

ChainX: 90% of the overall incentive plan has been finalized

The cross-chain project ChainX has already officially announced that it will participate in the slot auctions of the Kusama network and the Polkadot main network.

In an interview with Odaily Planet Daily, ChainX COO Kristen Said that the ChainX main network was launched in May last year. After taking the Kusama slot, ChainX will set up another Kusama parachain to test functions such as smart contracts and X-BTC; After the slot, the ChainX main network will also be officially connected and become a parachain of the Polkadot network.

Kristen says, "For first-mover advantage, ChainX will do its best to take the slot as soon as possible. The ChainX mainnet has been online for more than a year, and it can be said that we are just waiting for the parachain slot to start.”

When talking about the specific incentive plan, Kristen said that ChainX plans to use the parliamentary fund and the entire network computing power (which can be 15-20% of ChainX native token PCX) to motivate supporters; at the same time, ChainX is also exploring how to release the liquidity of KSM and DOT locked in the auction; in addition, ChainX also plans to attract users to lock their Chips to seize the opportunity.

Kristen revealed that ChainX’s overall incentive plan has been finalized for 90 %.

Darwinia: Infrastructure projects deserve more attention

Alex Chien, the co-founder of Darwinia, a cross-chain transfer bridge network, said in an interview with Odaily Planet Daily: "Darwinia has already made a general decision on the auction. Idea. Of course, we hope to take the slot as soon as possible, but due to cost-effective considerations, we have not yet decided whether to take the first slot. Before that, Darwinia’s testnet Crab will first bid for the Kusama slot.”

Alex Chien said that the number of early access to parachain projects is not There will be too many, so the so-called cross-chain interaction significance is not very significant within a certain period of time, but taking the slot as soon as possible will definitely bring better marketing effects.

In addition, it is still uncertain how many slots can be released in the initial stage. The most suitable for access in the early stage are actually those infrastructure projects that can bring more value to other parachains and even the entire Polkadot network. Darwinia belongs to this category, and its cross-chain transfer bridge network can be used for external heterogeneous areas. The block chain opens the door to enter the Polkadot ecology.

In terms of incentive plans, in addition to regular tokens ( Ring) incentives, Darwinia will also provide Land rewards to investors who support its bidding in the cross-chain virtual world game "Evolution Land". Alex Chien said that for projects like Darwinia whose tokens have been listed, the calculation of income is relatively transparent, and the imagination space is slightly insufficient compared with those projects whose tokens are not listed, so it is necessary to have some features in addition to the native tokens motivation.

Bifrost: We can unlock the liquidity of locked assets

Bifrost, which specializes in the release of pledged asset liquidity, said in an interview with Odaily Planet Daily: "Bifrost will participate in the auction of parachain slots, because Bifrost Bifrost’s mainnet needs to use Polkadot’s consensus and verification mechanism, and we will start the mainnet synchronously after the successful auction of the slot. But to take a step back, if the auction does not go well, Bifrost can also choose to use parallel threads.”

Bifrost announced in the recently released new white paper that it will launch IPO Liquidity The solution can provide vsDOT and vsKSM (Voucher Slot DOT / KSM) derivatives for other parachains to solve the liquidity problem of DOT and KSM in the slot auction process, and realize the transfer of rights and interests of users participating in the parachain IPO process at any time.

Bifrost also stated that it will use the internal transaction pool, parachain DEX , CEX and other methods provide trading scenarios for vsDOT and vsKSM.

Give an example to explain, for example, an investor is bidding A project is selected to support in the module and 100 DOT / KSM is locked. According to the original design of the slot auction, the 100 DOT / KSM locked by the investor will be locked for the entire lease period, but Bifrost can distribute the freely negotiable derivative tokens vsDOT / vsKSM to investors 1:1, in this case It is 100 vsDOT or vsKSM, and the value of the derivative token is equal to the sum of the locked original asset value and its locked income.

Stafi: We have planned for slot auction

In an interview with Odaily Planet Daily, Kaba, the founder of Stafi, the pledged asset liquidity release project, said: "We have known about slot auctions for a long time. planning.”

Kaba said that parachain slot auction There are still many uncertain factors in this matter, so Stafi is still discussing the specific bidding plan. In Stafi's vision (to solve the liquidity problem of pledged assets), Polkadot is an extremely important relationship chain, so Stafi has a demand for slots, but it needs to judge when it is suitable to access according to the relationship between supply and demand. There is an option to wait on a parathread or smart contract layer.

For projects like Stafi that have launched the main network, How to adjust the code to connect to the parachain is actually not too difficult. The most difficult thing to change is the economic model of the project itself. Stafi has reserved 40% of the community tokens at the beginning of its launch, which can be used to design IPO incentive schemes. In addition, Stafi has made preparations for whether it will be able to successfully access the parachain in the future, as well as the different situations after the slot lease expires.

Litentry: During the seed round, I have considered how many DOT chips the investor holds

Decentralized cross-chain identity protocol Litentry is the latest star project emerging in the Polkadot ecosystem. Litentry recently completed a $1 million seed round of equity financing, with participation from FBG Capital, Candaq Group, Signum Capital, NGC Ventures, BlockVC, D1 Ventures, Altonomy, Hypersphere Ventures, PAKA Fund, Digital Renaissance Foundation, RockX and LD Capital et al.

In an interview with Odaily Planet Daily, the founder of Litentry Cheng Hanwen said that the specific bidding plan has not been confirmed yet, but it is expected to launch the main network before the auction. In the previous seed round financing, Litentry also considered the DOT chips in the hands of investors.

In summary, although each company intends to carry out All construction projects hope to participate in the auction, but each project is different in terms of development progress, capital reserve (token reservation), business level, etc., and their enthusiasm for slot auctions is also slightly different.

For the project party, the size of the incentive is related to The success of the auction is directly linked, but excessive incentives—such as taking out a large proportion of native tokens, or providing too many external token incentives—will also bring huge pressure to itself, which is not conducive to the long-term development of the project.

While the number of slots to be released initially is still uncertain, However, as the development work progresses, the number of slots will gradually increase, and there will be alternative functions such as parallel threads in the future. The project party should do what it can according to its own development needs.

Beyond the arena: Undercurrents are surging

In addition to the project parties directly participating in the bidding, other roles in the Polkadot ecosystem (investment institutions, exchanges, mining pools, etc.) have already accumulated The huge chips in their hands will be the potential military force behind the charging project party.

What do investment institutions think?

In an interview with Odaily Planet Daily, Hashkey Capital (investment portfolio Including Acala, Darwinia Network, Edgeware, Moonbeam, Zenlink), Digital Renaissance Foundation (portfolio includes Acala, Darwinia, Zenlink, Bifrost, Plasm, Litentry, Dipole), Delian Capital (portfolio includes Bandot, Litentry, BOOL, Opensquare) and other institutions have expressed their intention to participate in the auction, and will give priority to helping projects that have already invested in the auction, and will also pay close attention to other high-quality new projects.

Li Kunyun, the founder of Delin Capital, mentioned that some project parties have come to ask for help in private, hoping to "borrow currency" to bid.

In this regard, Li Kunyun said: "In fact, from the project side itself For better development, this step (borrowing currency) must be taken. Whether it is borrowing currency from large households, institutions or exchanges, it is actually for project construction considerations, in order to be able to obtain in the Polkadot ecosystem. After all, no matter how powerful the publicity is, it is only showing soft power.”

"The matter of borrowing money is not simple. Behind it is a set of feedback mechanism, just like Staking, which must have certain benefits. Now everyone may be more sensitive to this matter, but in a few months, slot auctions will At the beginning, this situation will be very common. On the contrary, I have a little good opinion of the project parties who start to borrow coins now, because it shows that they are treating the slot auction as a big event, preparing in advance, and fighting for chips. I also hope that wave Card holders will be able to actively participate in the slot auction.”

In addition to the above three institutions, other investment institutions are also paying close attention to the slot auction.

NGC Ventures partner Zhu Weiyu said: "The slot auction is For Polkadot itself, successful bidding projects and investors, it will be a win-win opportunity in the medium term, so it may support high-quality projects to bid. NGC has been deeply cultivating the Polkadot ecology, in DeFi, storage, aggregator, privacy protection There are a lot of layouts in other directions, and it has also invested in multiple ecological native projects including Polkastarter, Crust Network, Litentry, and Bifrost.”

Yuan Hao, a partner of Fundamental Labs, said that he is indeed paying attention to the slot auction, but currently he will only hold the currency (DOT / KSM) to wait and see, waiting for some stars Participation will be considered after the project has passed the process.

For ordinary investors, if you intend to participate in the slot auction , in addition to simply calculating the book incentives given by each project, it is also necessary to carefully consider the release time of tokens, the long-term prospects of the project, whether the economic model can support lease renewal fees, and many other details.

For reference, Cao Yin, Managing Director of the Digital Renaissance Foundation Gives his own investment logic - focus on the fundamentals, that is, whether the project provides the lowest infrastructure; whether it can prove the ability to realize the product; whether it has close technical contact with Polkadot officials, and can quickly deploy the latest Polkadot Technical achievements.

What about exchanges and mining pools?

Different from investment institutions, institutions such as exchanges and mining pools With a large number of user resources, you can choose to directly cooperate with the project party and open up a channel for users to participate in the auction in the exchange (it can be compared to the fact that exchanges and nodes will provide staking services when many PoS projects were popular before).

Binance told Odaily Planet Daily: "Parallel chain insertion The slot auction may bring higher benefits to our users, so we have been paying attention to it. We have made some product preparations and will officially announce it after the parachain slot auction starts. Some projects are also actively contacting us , Since the time for the official opening of the auction has not been determined, we currently have no formal cooperation projects, but we will keep in touch with the Polkadot ecological project, and participate in the development of the Polkadot ecosystem while increasing our user revenue.”

The person in charge of Huobi’s related business also said: “It is expected that the slot auction will Boosting the exponential ecological explosion and technology upgrade of the entire Polkadot circuit. Huobi will cooperate with the Polkadot Foundation and developer community as soon as possible to provide professional and convenient service channels to help users participate in slot auctions.”

Hashquark mining pool CEO Li Chen was interviewed by Odaily Planet Daily Shi said: "Hashquark is also paying attention to the auction. For the mining pool business, if a large number of DOTs participating in node pledges are transferred to participate in slot auctions, then the rate of return of node pledges will also increase accordingly. This is for us. It is beneficial, so Hashquark will continue to focus on node staking. As for whether to choose to participate in the auction, there are still too many uncertain factors. From an ecological point of view, we will also consider participating.”

Whether it is for investment institutions, exchanges or mining pools, slot auctions It is a brand new battlefield, and whether to participate and how to participate still need to be carefully considered. Conversely, the project party has already "eyes" on the huge bargaining chips in the hands of these institutions, and is expected to do its best in the next few months to absorb and hoard more "food and grass".

Since the organization can help the project side win the slot, of course You can directly enter the auction by yourself. Many interviewees mentioned to the Odaily Planet Daily their concerns about this extreme situation-some institutions may take slots for arbitrage purposes and resell them to project parties that urgently need slots.

Zhu Weiyu said that if some well-known public chains or exchanges Going to the auction in person, some high-quality projects with relatively insufficient financial strength may not be able to get slots. This problem requires the Web3 Foundation and the ecology to consider how to solve it.

However, institutions also need to assess risk factors when directly bidding As mentioned above, the value of slots will gradually be diluted as the development work progresses, and organizations may not rush to make a move until the situation becomes clearer.

In addition, some project parties are also worried about the chips of the official background ( For example, whether the DOT held by the Web3 Foundation and Parity Technologies will participate in the auction. In this regard, Jia Yaoqi told Odaily Planet Daily: "It is likely to support excellent functions and projects."

How will the slot auction affect DOT?

According to the only information so far, guess the specific currency The price trend is too arbitrary, but we can lower one dimension to talk about the impact of the slot auction on the DOT pledge structure and pledge rate of the entire network.

Note: The parachain auction brings a new DOT locking method. In order to distinguish, the word "pledge" below It only represents node pledge.

As shown in the figure below, Polkadot adopts a nonlinear inflation model. When the staking ratio (x-axis) exceeds 50%, the staking yield (green line) will drop significantly.

x axis: DOT pledge rate

y axis: (inflation rate and yield) percentage

Blue line: inflation Rate

Green Line: Pledge Rate

Image from: PolkaWorld

Polkacube data shows that the current DOT pledge rate of the entire Polkadot network is about 66.52%. Therefore, it is expected that after the parachain slot auction starts, the DOT pledge rate of the entire network will gradually fall back to 50%, and the rate of return of node pledges will also gradually rise. Fuyao predicted that when the first parachain is launched, it is expected to attract 3% - 5% of the DOT participation in the entire network.

With the release of more parachains, it is expected that the The total lock rate of DOT (node pledge + auction lock) will exceed the current pledge rate (66.52%).

Tong Lin predicts that this number will exceed 70%, or even break through 80%; Alex Chien also gave a similar prediction, saying that more than 20% of DOT will choose to participate in the auction - if calculated according to about 50% of DOT will choose to participate in node pledge, the total lock-up rate of DOT will also exceed 70% %.

As an important indicator of fundamentals, the locking rate of the entire network The increase in DOT is expected to have a certain positive impact on the performance of DOT's secondary market, but the direction of the currency price still needs to be comprehensively judged in conjunction with the market environment at that time.

Afterword

Although the forces of all parties are gearing up, there is still a period of time before the official launch of the slot auction, and the finalization of various key information still needs to wait for the actual test results of the new version of the Rococo network.

Polkadot's vision for Web 3.0 is a grand picture, which It is not achieved overnight, and requires the long-term collaborative construction of all parties in the ecology. Project parties also need to be more patient and maintain reasonable expectations while actively preparing to participate.

For Polkadot, the landing of the parachain is just a long way to go One of the important junctures on the long road, but from this microcosm, we can be full of expectations for the future of this ecology - with the long-term support of the Web3 Foundation, the collaborative efforts of project parties within the ecology, and the layout of capital institutions, The future of Polkadot will surely be prosperous.