a popular altcoin the one which Polkadot (DOT)rallied after a management vote approved the addition of parachain auctions to its protocol.
Cryptocurrency recently submitted a proposal on open-source governance platforms Polkassembly to allow two mass parachain auctions for the network to begin in November. According to CoinGecko, this confirmation ignited a rally that allowed the DOT to rise 26 percent in one day from $32.21 to $42.16.
Parachains are layer-1 blockchains connected to the Polkadot network. The auction determines which blockchains will integrate into Polkadot’s transit chain to access the network’s interoperability features. These auctions include investors backing a particular blockchain, users bidding with DOT tokens to try their luck at securing a parachain slot.
The vote to bring parachain auctions to Polkadot took place after the successful launch of parachains on DOT’s canary network, Kusama (KSM). canary (a physical or virtual device that can emulate almost any type of device in any configuration) is a blockchain designed to test features that are planned to be developed on the mainnet in the future.
As Polkadot points out in a recent blog post:
“Parachains have already been running successfully on Kusama, Polkadot’s ‘canary network’, since Statemine was launched on June 3, 2021. Since then, 11 parachain slot auctions have been successfully held in Kusama for a total of 12 live parachains.
The fact that this type of activity has been taking place in Kusama for over four months without major issues is a huge factor given that parachains are ready to launch in Polkadot.”
The price of DOT has since stabilized and is currently changing hands at $40.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.