Take part in the Polkadot parachain auction (DOT) thanks to Just Mining

This article is written in partnership with Just Mining (find out more)

Parachains, an opportunity offered by the Just Mining platform

The development of investment opportunities offered by cryptocurrencies is exponential. Parachains are part of this rapid evolution of the sector.

Participating in parachain auctions means allowing your tokens to serve a purpose: the financing of a project. You can choose the latter from a predefined list.

Good news, the French platform Just Mining, which holds the PSAN registration, now allows its users to participate in parachain auctions.

After having launched into lending to generate passive income in stablecoins, it is therefore a new feature for Just Mining.

๐Ÿ‘‰ Find our complete presentation of Just Mining

What is a parachain?

Parachain is a term that has recently appeared in the cryptocurrency sphere. Parachains come from the Polkadot ecosystem (DOT) and are part of its DNA.

As its name suggests, a parachain (or para-chain) is a chain parallel or secondary to an infrastructure blockchain, the main blockchain.

Within the Polkadot ecosystem, the infrastructure blockchains are of course Polkadot, but also Kusama (KSM). In a nutshell, Kusama is a bit like Polkadot’s โ€œtest blockchainโ€.

The parachain provides access to the infrastructure offered by Polkadot and Kusama. It is thus created through a space dedicated to it, called a slot.

Obtaining a slot provides considerable advantages: benefit from the Polkadot infrastructure, possibility of creating your own blockchain in association with one of the most promising blockchains for the future, a guarantee of seriousness for the winning project. .

This is because for a project to get a location, it must do so with authority. Places are limited and, to avoid any favoritism, an auction system has been planned.

Ultimately, it is expected that there will be 100 parachains, including 30 at most in the first year. In order to be able to participate in the parachain auctions, it is essential to have DOT tokens.

What are the roles of the DOT token?

The DOT token is at the heart of the auction system and the Polkadot ecosystem in general. Without DOT, it is simply not possible to participate in the auction.

All DOT holders can participate in parachains without discrimination. On Just Mining, the undeniable advantage is that it is possible to participate with a single DOT, the value of which has been growing steadily for a few weeks.

At the start of an auction, several projects are in the running. You then have the possibility of supporting one or more projects thanks to your DOT, which will notably allow to finance it / them and to obtain a famous slot: a parachain.

The duration of an auction is one or two weeks. At the end, if the supported project is a winner, your DOTs are blocked on-chain within a smart contract. The blocking period may vary depending on the project and can be up to two years.

On the other hand, if the supported project loses, your DOTs are returned to your Just Mining wallet within 24 hours.

Just Mining Parachains

The complete workings of a parachain auction on Just Mining

What are the first auctions of parachains?

Just Mining will offer three projects to bid on. It is already possible to place DOTs on the first two.

The first is Moonbeam. It is a decentralized smart-contracts platform, with the objective of interoperability between Polkadot and Ethereum (ETH), then other blockchains thereafter.

The second project is Acala, which focuses on decentralized finance (DeFi) on Polkadot. The platform can be compared to Aave or Curve in principle.

Finally, Phala Network aims to set up confidential smart contracts and cloud services. The project focuses in particular on the protection of user data.

What rewards are planned for the winning projects?

The main interest of participating in parachain auctions is the possibility of obtaining a reward. These rewards are different depending on the project and are, to date, unknown.

If we draw a parallel with crowdloans (participatory loans) on Kusama, the rewards will most likely be an airdrop of tokens native to the winning project.

The immense advantage is to be able to position oneself very early on an ambitious project. Tokens received at zero value can therefore be worth very large in the future.

Of course, when participating in an auction, it is not possible to know the value of tokens once they are listed on an exchange platform. There is therefore no guarantee of obtaining financial gain.

Regarding the fees charged by Just Mining, the company keeps 5% of the native tokens issued by the winning project. For example, if the airdrop foresees 100 X tokens, you can keep 95. If the project loses, no fees will be applied by Just Mining.

Likewise, when your DOTs are released, they will be returned to you free of charge.

Participating in a parachain auction with Just Mining is therefore an excellent opportunity to get involved in a project very early on. If the latter is successful, your tokens can be worth very large.

In addition, your DOTs are not given, but loaned. They will be returned to you in one or more installments. It is therefore a unique opportunity for those who want to invest in a project at its beginning and this possibility is facilitated by Just Mining.

๐Ÿ‘‰ If you have other questions about parachains, see the Just Mining FAQ at the bottom of the page

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About the author: Benjamin Allouch

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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.

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