ACALA Wins First-Ever Polkadot Parachain Auction

The Polkadot ecosystem has been a very unique and distinct one. It came with a non-common design and architecture. In the years to come, Polkadot will soar really high in valuation and use cases.

Acala recently made history after emerging winner of the first-ever Polkadot parachain auctions. The winning wasn't that easy as Moonbeam project was fighting for the spot aggressively. However, Acala won in the first parachain auctions.

At the end of the first auction, Acala had 24,934 contributions. From this contribution, a total of 32,515,980 DOT, which is equivalent to $1,143,261,865 was being raised. Note that, this first Polkadot parachain auction took place between November 11th, 2021 and November 18th, 2021.

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Understanding Polkadot Parachain Auctions

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Polkadot network has a heterogeneous multichain framework. This structure type is what you may call revolutionary and groundbreaking. By heterogeneous multichain, it means that the Polkadot network has the capacity to onboard other projects on it's network. Aside from just onboarding, after being onboarded to the Polkadot network, the project gets to enjoy all the features of the Polkadot relay chain.

In other words, Polkadot have slots for project to get onboarded. Now, there are two categories of slot namely, Parachain or Parathreads. Since many projects would always show interest, an auctioning is usually being done.

Parachain auctions are exclusive events carried on the Polkadot network where projects get to bid for a parachain slot. Bidding is done by locking up DOT tokens for a period of two years. In the end, the highest bidder gets to win the parachain slot. More so, the winner of the parachain auction then gets to the privilege of being onboarded on the Polkadot relay chain.

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After five years since the inception of the parachain auctioning idea by the Polkadot founders, the first auction took place from November 11 and lasted for one week only. Generally, there will be only 11 auctions in this initial stage with each lasting for a week. Acala happened to win the first-ever parachain auctions.

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More so, Moonbeam won the second parachain auction while the third auction is still underway. Both Acala and Moonbeam will onboarded on Polkadot central chain from December 17, 2021. The leasing will last for 96 weeks with an option for renewing. During this leasing period, DOT contributors cannot access their tokens but in the end, they get back their tokens

Sometimes, projects resort to crowdloaning where project teams call for contributors to lock their DOT tokens with the intention of rewarding them with the project's native token.

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