The first Polkadot (DOT) parachain auction for Acala (ACA)
Long awaited for months, the auctions of parachains (or para-chains) of Polkadot began in early November. It goes without saying that the success was at the rendezvous with a battle between the two favorites that were Acala Network and Moonbeam.
As a reminder, these auctions allow everyone to deposit their DOTs by supporting participating projects. DOTs are blocked on-chain and, in exchange, the project winning an auction rewards investors who have supported them by granting them native tokens of the winning protocol.
Acala and Moonbeam traded first place several times during the week. But it was finally Acala, a DeFi platform, which won the first auction, beating its rival by a few hundred thousand DOTs.
Congratulations to @AcalaNetwork for winning Polkadot’s first parachain auction!
Acala will be onboarded at block # 8179200 [Dec. 18] at the beginning of lease 6 with the other first 5 auction winners. Over 81K network stakeholders locked up DOT in favor! Https: //t.co/ZFSzezZAFX pic.twitter.com/Xn0hItfHrm
– Polkadot (@Polkadot) November 18, 2021
In total, more than 81,000 wallets have contributed to Acala, for a total value of over $ 1.3 billion at the time the auction was won, yesterday at noon.
👉 To go further – Take part in the Polkadot parachain auction (DOT) thanks to Just Mining
The success of the parachain auctions at the rendezvous for Polkadot (DOT)
Acala is a decentralized finance platform operating on the Polkadot network. It is also compatible with Ethereum. With Moonbeam, a decentralized smart contracts platform, it is the most anticipated project of the Polkadot ecosystem.
For the latter, founded by Gavin Wood, co-founder of the Ethereum blockchain (ETH), parachain auctions are a life-size test for the future.
First of all, these auctions confirm the success of crowdloans on Kusama (KSM), Polkadot’s sister blockchain. It is also Karura (KAR), the Acala protocol deployed on Kusama, which won the first slot of the network.
Then, this auction system is quite simply a first for the entire crypto sphere. Unlike Initial Coin Offerings (ICO), the tokens deposited are not “given” to the project, but blocked thanks to a smart contract for a fixed period.
The blocking is therefore scheduled for 96 weeks, which leaves ample time for the winning protocol to deploy its project and make it profitable. At the end of these almost two years of blocking, the DOTs are returned to their owner.
It goes without saying that the success was therefore largely there, with approximately 70 million DOT already deposited. On the other hand, the suspense side plays a lot, with a winner designated only at a T moment.
👉 To go further – Polkadot (DOT), the interoperable protocol for building Web 3.0
What next for Acala (ACA) after winning the first auction?
The first parachain slots will be activated around mid-December and the first five winning projects will be online on December 17th. Unlike Kusama, there is therefore no particular advantage in winning the auction first for Acala.
What is certain, however, is that the Polkadot projects are in the spotlight. Indeed, it is possible to participate in auctions via many exchange platforms.
In addition to Just Mining for French platforms, Kraken and Binance also allow you to deposit your DOTs and receive in exchange, directly on the exchange, the tokens of the winning project to which the user has contributed.
The next few months will therefore be important for Acala Network, the other projects and the entire Polkadot ecosystem in general. The future of one of the most promising blockchains of recent years is at stake.
👉 To read – Polkadot: the DOT exceeds $ 50 for the first time as the parachain auctions approach
About the author: Benjamin Allouch
Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. Today, I am an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.