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Don't Sleep on Polkadot Parachain Auctions!

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Agr8buzz
@agr8buzz
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Starting Nov 11th we will see a series of Auctions take place on the Polkdot network, at a rate of one auction per week. Polkadot governance leases individual parachain slots for a period of two years, then the slot goes back to auction.

What is a Polkadot Parachain

A parachain is a Layer 1 blockchain on Polkadot, which connects to the Polkadot relay chain for security, scalability, and interoperability. 100 Parachain slots are available on the Polkadot network. Winners of a slot auction receive a slot to build on, with the remaining slots going to what's known as "common good chains", or chains that benefits the entire network.

A parachain slot is required in order for a project to build on the Polkadot or Kusama network.

If the project wins, the bonded DOT or KSM is locked by the network for the duration of the parachain slot, after which the tokens are unlocked and may be re-claimed by those who contributed. source

While some projects will participate directly in an effort to win an auction and acquire a slot many will utilize the crowdloan system to raise funds in an effort to win an auction and acquire a slot. This is where the fun comes in!

Parachain Crowdloan Rewards

The crowdloan is where is it's at in terms of potential earnings. You will need to lock up some DOT/KSM for a period of 2 years if the project wins a slot (which you hope it does!). Keep in mind you don't need to send DOT from your wallet to participate in the crowdloan, it stays put safe and sound.

Projects utilizing the crowdloan system will offer their own set of rewards as a thank you for participating the raise. These rewards often include receiving some of the new projects native tokens, this is where money can be made.

Upcoming Projects To Watch For!

Acala

Acala is the all-in-one DeFi hub of Polkadot.

Here's an option if you want to get into a DeFi project early! This is one of my top picks, and while there's no sure why to pick a winner I have more confidence in DeFi. Participating in Acala crowdloan rewards 3 ACA for each KSM contributed. As with all of these projects, read the details as you'll see some of the rewards are vested for a period of time.

Efinity

Efinity is a cross-chain NFT ecosystem project, built by Enjin!

We've formed a US$100 million Efinity Metaverse Fund to formalize support for our ecosystem partners, and help make the decentralized Metaverse a reality. source

Efinity will try to solve some key problems faced by the NFT space. Starting with a user friendly interface for NFT publishers, which included access to "flexible" smart contracts, and an interoperable platform with extremely low transaction fees. Win win and win!

Not financial advise, just my picks based on what I like.

I'm more info DeFi, Gaming, and NFT's but there are other projects up for auction that I would describe as key ecosystem pieces that are a little less fun but will inevitably prove to be essential for long terms success.

Ciao for now,

@agr8buzz

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