With the steady advancement of the Rococo Polkadot testnet, the parachain slot auction launch date is approaching. Many projects have stated that they will participate in the first batch of parasain slot auction for Kusama and Polkadot.
As an important project on the decentralized storage path in the Polkadot ecosystem, Crust Network is also actively preparing for the auction of the first batch of Kusama and Polkadot parachain slots.
Based on the latest information, Crust provides several analyzes and assessments related to the Polkadot Parachain slot auction.
Polkadot is a scalable heterogeneous multi-chain blockchain consisting of a collaborative decentralized blockchain network, which can be called the Relay Chain. The purpose of the Relay Chain is to protect the smooth operation of the parachain.
To illustrate, Parachain is like various network devices, and Polkadot chain relay slots are like router network ports.
When a device is connected to a router's network port, it can interact with other routers efficiently. At the same time, this router can also provide network security protection for the connected devices.
Slots are for rent only, not for sale: Each slot is divided into four rental periods, each rental period is 6 months, and the entire slot life cycle is two years. Projects can bid for several contiguous or single rental periods according to their needs.
Polkadot's parachain slot auction mechanism is very innovative. No case studies for reference. However, from the Polkadot Wiki and the current auction-related code, there is some information that can be obtained.
Among them are the combination of tenure periods, there are 10 types of combination of rental periods. Then there is a project tender mechanism that can use the DOT obtained from Crowdloans to bid on the combination of the above lease periods.
The bidding plan is not unique, and can bid repeatedly for different combinations of rental periods. Details on the auction mechanism can be found here.
After conducting the auction in the end there is a winning mechanism, which is entitled to use the parachain slots during the rental period not only the project with the highest bid, but the assessment based on the optimal combination. After the auction ends, he will enter the DOT auction lockup period, within a certain period of time.
To date, there are a total of 383 projects in the Polkadot ecosystem, 122 of which are substrate based. These projects can participate in the parachain slot auction.
Participants in the first batch of parachain slot auction will be projects with higher maturity date. Currently, the projects connected or waiting in line for access to the Rococo testnet will most likely become strong competitors in the first batch of slots.
As a project that wants to win the auction at Polkadot, Crust is also getting ready.
In the Crust economic model, we have included fees for bid and maintenance of slot auctions, which in total account for 40% of the community development token allocation, or about 2 million CRUs (project native tokens).
Using the current market price of the CRU, the value is $ 70 million USD. To be clear, we have budgeted for parachain auctions for ten years, not just for the first parachain slot.
"Crust will also comprehensively evaluate the strategic meaning of the first batch of parachain slots and allocate appropriate resources to form a concrete scheme for the forthcoming auction of Kusama and Polkadot's first parasain slots," said Crust's official statement.
Crust's Preview Network, Maxwell, has been operating smoothly since launching on February 4th. To date, there are more than 1,000 effective nodes and more than 100 PB of storage available on the network.
Simultaneously, Crust has successfully connected to Rococo and plans to test XCMP functionality with other connected projects.
If Crust can connect to the parachain slot at an early stage, enjoy the security benefits of Polkadot and start cross-chain information interactive innovation with each project team, it will have a major impact not only on the improvement of the Crust project but also in the development of Polkadot's ecology.
