Polkadot (DOT) Records Double-Digital Price Spike Ahead of Upcoming

Polkadot, a sharded blockchain protocol co-founded by British computer scientist Gavin Wood, has announced that its much-awaited parachain auctions will commence in November.

The tentative date for the first auction is Nov. 11 after the Polkadot Council voted in favor of Motion 118, inching closer to a May 15 all-time high of $49.35.   

The proposal for parachain auctions has now gone to a public referendum that is going to last for six more days. 

The price of Polkadot (DOT) has spiked by more than 12 percent on the announcement.   

According to co-founder Robert Habermeier, Polkadot’s code has been fully audited, which was the final step before kicking off the rollout of parachains.   

The term “parachain,” which is a portmanteau of “parallelizable” and “blockchain,” denotes sovereign layer-1 networks that are connected to the relay chain. Parachains will potentially allow ensuring interoperability between hundreds of separate blockchains with different purposes.

In order to secure coveted parachain slots, a slew of projects has to compete through the auction process. Each auction on Polkadot lasts seven days. Winners will be assigned a parachain slot for eight 12-week lease periods.

Kusama, Polkadot’s sister network that performs the role of a test environment, successfully held its very first batch of parachain auctions in June and July, with decentralized finance project Karura becoming the very first winner.