The slot auction is ready to go, take a look at the whole picture of Polkadot slot auction

Original title: "The Slot Auction is Ready to Go, A Panorama of the Polkadot Slot Auction"

Original Source: Blockchain Institute

Polkadot is a well-known public chain in the industry with a high reputation. The Polkadot mainnet was officially launched at the end of May this year, and it has not yet been fully "available".

The most important node of Polkadot is the parachain launch, only the parachain After it goes online, the Polkadot network can run applications. The current Polkadot network can only perform some basic functions such as staking, block generation, and transfer. Therefore, the launch of the parachain is very important to Polkadot.

At present, many projects in the Polkadot ecosystem have completed code development and auditing work, and can go online directly after the parachain goes online. Looking forward to a big market for DOT/KSM during the slot auction.

From the current news, the   Rococo v1 test network will be launched before Christmas, and its The official launch of  Rococo v1 means that the slot auction has officially kicked off. This article will use concise language to give you an overview of the Polkadot slot auction, and help you understand the important event of the Polkadot slot auction.

1. What is Polkadot?    

Polkadot was founded by Gavin Wood, former CTO of Ethereum, and is committed to becoming a cross-chain network for Web 3.0 infrastructure.

The reason for Polkadot is to solve the low performance problem of Ethereum, using the relay chain and parachain expansion scheme. In the Polkadot network, all blocks submitted by the parachain are verified by the relay chain nodes, and the relay chain is responsible for the finality of the parachain. The following picture is the core concept map of Polkadot:

The relay chain is responsible for the finality so that all parachains have the same security as the main network. The parallel chain saves a lot of security costs, and at the same time can freely design different structures to meet its own business needs.

Second, why is the slot important?

Due to the limited network resources, parallel chains cannot be accessed without restriction. Polkadot designed 100 slots are used for parachains, and the way to obtain them is through auction. Only by obtaining the slot can you stably access the Polkadot network and enjoy the security of the main network. The essence of the slot is the right to use the Polkadot network. The slot period is 6 months, and one auction can obtain the right to use for up to 2 years.

Each chain can design its own structure according to needs, and at the same time can enjoy the Polkadot mainnet equal security. Many parachains have been designed as smart contract platforms, attracting project parties who do not want to bid for parachains to build applications on their own chains, thus forming their own small ecology within the Polkadot ecology. At this level, the importance of sockets is even more prominent. Because slots may allow parachains to form their own ecology and realize their own network effects.

Because many projects have already made sufficient preparations and are in urgent need of slots, and the first item auctioned to the slot will have a huge advertising effect, so the first slot Slots can command sky-high prices.

Third, the steps of slot auction

Gavin Wood mentioned Polkadot in early December Parachain launch is divided into 6 steps. As follows:

Launch Rococo v1 and wait for its stable operation;

Launch Kusama’s system (public interest nature) parachain;

Open the auction on Kusama;

Launch the successful parachain on Kusama;

(After the audit is completed) launch Polkadot’s public interest parachain;

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Open the auction on Polkadot; launch the parachain that successfully bid on Polkadot.

The Kusama mentioned above is Polkadot's leading network, which has an independent organization and community, and is an independent blockchain with real value. Kusama is the leading network of Polkadot. New functions and features that appear on the Polkadot network will be launched on Kusama first, and the same is true for slot auctions. Just because the slot auction will be held on Kusama first, it is expected that the secondary market of Kusama will perform well under the blessing.

Wave on November 17 At the press conference of Rococo V1, the card parachain test network, the official news revealed that Rococo V1 is expected to be launched on the test network on Christmas Eve.

At the official Polkadot Decoded conference, Parity core development engineer and Polkadot co-founder Robert Habermeier revealed:

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It is expected that the parachain will release the parachain testnet in January 2021, and "product-level delivery" is expected to be achieved in February 2021.

The parachain test network released in January mentioned here is the first phase of the six phases mentioned by Gavin Wood, the launch of Rococo V1.

From the roadmap mentioned by Gavin Wood above, the first stage of the parachain launch is "Launch Rococo v1 and wait for its stable operation", and the current progress is that the Rococo v1 testnet will be launched on Christmas Eve. After the testnet, Rococo v1 will be officially launched. The launch of Rococo v1 means that the Polkadot slot auction is officially launched. The curtain has been drawn, and this time node may be in February.

4. Will too expensive slots affect ecological development?

Can be very expensive due to the huge advertising effect of the early slots.

Slots are not available for bidding at any time, but are released at a rhythm of several weeks. With the increase in the number of releases in the later period, the price of slots will increase compared with the previous period. will be reduced. At the same time, the slot price is closely related to the development status of the Polkadot network. If the development of the Polkadot network is booming, it is possible that the slot will continue to remain high.

But not all projects want to spend a lot of money to bid for slots, what about these projects?

In fact, for some non-financial businesses, it may not be very suitable to go to the Polkadot main network to bid for slots. is a better choice.

Secondly, if it is some business that does not require frequent interaction, using parachain threads will be a more cost-effective choice. Parachain threads can also access the Polkadot mainnet, but they don’t have fixed positions like parachains, and the payment mode is pay-as-you-go. When there is business, it is necessary to link to the main network and pay fees.

There are also some project parties who only want to do applications and do not want to do chains, they can choose to build parachains that have been connected to the Polkadot mainnet. Judging from the current news, many parachain projects are designed as a platform model, and the applications that come to build are very welcome. This will help the parachain to form its own ecology and increase user coverage. Why not do it?

So if you think the slot cost is too high, in fact there are many flexible ways, developers can Choose a method that suits you to access the Polkadot network, and obtain the security and user ecology of the Polkadot main network.

5. What are the risks and opportunities of slot auctions?

The slot is expensive, and it is difficult for the project party to bid alone with its own strength. Polkadot officially designed a special bidding system, so that other users can help the project party to bid together.

In order to achieve the purpose of auction, many project parties have come up with their own tokens to encourage community users to participate in the auction. The DOT/KSM that users participate in the auction will be locked for 6-24 months, and the project party will generally design different incentive shares for different locking periods.

Users who participate in the auction mainly face opportunities and risks. Users who do not participate in the auction can obtain the Staking income of the system and other investment opportunities. And if the participating projects do not develop well, the token rewards they receive may not be as much as those obtained by staking.

But if the project develops well, the income may be considerable. For most new projects, there is room for imagination here.

6. Who are the important players?

In the slot auction, in addition to the project party and its community, exchanges, institutions, and Polkadot officials will also be very important participants. After all, there are only a small number of coins in the hands of retail investors, and not all of them will be used to participate in the auction, so who can get the support of institutions, exchanges or even the official may have an important impact on the auction.

Currently, many projects have shown that they want to participate in the slot auction, such as Acala, Chainx, Bifrost, Darwinia, Stafi, Phala, SORA , etc. In fact, these are also projects that are often named by officials in public channels, and they are technically closer to Polkadot officials.

Let's take a brief look at the incentive programs provided by the above projects and see if they can attract you.

Acala

Acala is currently a well-known project in the Polkadot ecosystem. It wants to become the core of Polkadot DeFi, mainly including stable currency issuance, DEX, and DOT/KSM liquidity release business. The Acala team is strong, the investors are extremely luxurious, and the community building is also very good.

At present, Acala has not given a specific incentive plan. According to public information, Acala wants to become the first parachain on Polkadot and Kusama. Acala will build the Acala Pioneer Network on Kusama to benchmark against Polkadot's Kusama, and the bidding incentives will come from the corresponding chain. At present, Acala has not announced how many tokens will be used for incentives, but community users are actively preparing to participate.

Chainx

ChainX is the earliest Substrate chain in China, and its mainnet was launched very early. ChainX wants to become a cross-chain hub for digital assets, and has been doing digital asset cross-chain business.

According to public information, ChainX plans to use parliamentary funds and the entire network computing power (ChainX can be dug out 15-20 % of native token PCX) to incentivize supporters.

ChaiX’s token distribution model is computing power mining. Computing power can be obtained by locking the assets required by the network. Currently, 15%-20% The computing power is not small. However, considering that the business has grown significantly after connecting to the Polkadot network, the computing power may continue to increase. Whether the computing power is attractive needs further judgment.

Darwinia

Darwinia is similar to ChainX, and it is also a cross-chain project, but Darwinia 's cross-chain direction covers a wider range, which includes not only cross-chain assets such as ETH, but also game assets and non-standard Asset cross-chain, application chain cross-chain and other services.

According to public information, in addition to providing token incentives, Darwinia will also Land rewards are available in "Evolution Planet". No further auction details have been released at this time.

Bifrost

Bifrost It is a DeFi protocol focusing on the liquidity release business of pledged assets. Bifrost has already launched the liquidity release business of ETH 2.0 Staking, and it will also provide liquidity release business for slot auctions. When users use Bifrost's services, they can obtain bidding rewards and liquidity at the same time, which will increase the enthusiasm of users to participate in bidding.

According to public information, Bifrost has reserved 13.5% of the total tokens for slot auctions, It is used to bid for the right to use the parachain for 4 years. Specifically, 2.25% of the total tokens will be used for the Kusama parachain slot auction, and the remaining 11.25% will be used for the Polkadot parachain slot auction.

Stafi

Stafi Its business is similar to that of Bifrost. It has launched the main network and released a cross-chain bridge for the Ethereum network. It also recently released the ETH 2.0 Staking liquidity solution, but it has not yet launched.

Stafi has not announced the bidding rules at present, but according to public information, Stafi has reserved 40% of the tokens in the community incentives, which has great operational advantages room.

Phala   

Phala is the privacy infrastructure on Polkadot, and is currently a well-known player on the Polkadot ecological privacy track.

Phala date has announced some plans, Phala will take out 0.5% of the total amount of tokens -1% is used for the Kusama parachain slot auction, and 3%-5% of the total amount of tokens is used for the Polkadot parachain slot auction to participate in the auction.

SORA

SORA It is a Polkadot-based chain, and Polkaswap is a DEX based on  SORA . Although SORA is not well-known in China, it is a project worthy of attention.

The SORA team is strong, and the developed Polkaswap  is also unique in design. SORA will participate in the auction of parachain slots, and its incentive is 30% of the total amount of Polkaswap tokens, and plans to bid for the right to use the parachain for 6 years.

7. Summary

This article tries to use simple language to outline the Polkadot parachain for you The whole picture of the auction, the above is the key content of the Polkadot parachain slot auction.

In the slot auction, the liquidity release business provided by Acala and Bifrost is a bright spot in the fierce battle, and will provide additional help for users participating in the auction , prompting more users to participate in the auction.

From the current progress, the product-level delivery realized in February may be the launch of the public welfare parachain. As for the interval between the public welfare parachain and the auction, Not sure yet, but it won't be a long wait.

The parachain auction is ready to go, we will wait and see what kind of waves will come.

Extended reading:

1. "How to quickly understand the fiery Polkadot?" This introductory guide is worth collecting"

2. "Overview of Polkadot's 9 popular DeFi, who has more potential? Who could be the pit? "

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Disclaimer: This article is the author's independent point of view and does not represent the blockchain research institute (public account ) position and does not constitute any investment advice or recommendation.

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