Currently the Polkadot network and its followers are waiting for the end of the first auction of their parachains, a tender where those who want to take part as financing bidders, must place their DOT in guarantee to support the blockchain project that they would like to see. connected to the parachain space of the network.
It should be noted before commenting on the current events of the auctions, which will not be the first to be held, the auction schedule:
- Auction 1: from November 11 to 18, 2021. The winning parachain will be announced on November 18, 2021.
- Auction 2: from November 18 to 25, 2021. The winning parachain will be announced on November 25, 2021.
- Auction 3: from November 25, 2021 to December 2, 2021. The winning parachain will be announced on December 2, 2021.
- Auction 4: December 2-9, 2021. The winning parachain will be announced on December 9, 2021.
- Auction 5: December 9-16, 2021. The winning parachain will be announced on December 16.
News of the first auction
As of today, November 17, the day before the end of the first auction. The projects that are currently auditioning are; Acala, Moonbeam, Astar, Parallel Finance, Clover Finance, Manta Network, Litentry, SubDAO, Darwinia, SubGame Network, and Efinity. All together they have raised the sum of 83,617,329 DOT tokens which represents in dollars, a figure of USD 3,429 146,667. Below to have a better overview, a screenshot of the ranking at the time of writing this note:
As we can see, the list is led by Moonbeam and Acala, projects that have received as funds a little more than 75% of the DOT corresponding to this first auction, and that as of today, it is also important to note that Moonbean surpassed Acala , to be ranked number one, In the previous days Acala had been leading the list, an example of this can be seen in the following capture made on the list yesterday, the day also on which the news that Astar Network, the project ranked third behind Acala and Moonbeam, received 300,000 DOT coins from DFG Group, a global blockchain investment company, which at the time was worth USD 12.65 million.
The behavior of financing or funding to the projects participating in the audition can also be observed in the following graph, where Acala (Celeste) and Moonbeam (Purple) They have always been leading the auction since it started.
An already announced winner?
It is very likely that one of them two, Acala or Moonbeam, be the winner of this first auction of the Polkadot parachains, However, the position by the number of DOTs offered at the moment of the end of the auctions will not determine the winner, since the award or auction system is carried out by a method called ¨Candles Auction¨, Unlike traditional auctions, where bidders bid higher and higher, and the highest bidder at the end of the auction is the winner.
In these types of candle auctions, when the candle flame goes out, the auction would suddenly end and the current bid won. That same system is the one that Polkadot is using for its parachain auctions but it does so in a linear way, with blocks, which implies that when candle auctions are used online, they require a random number to decide the time of completion. , in the case of Polkadot it differs that they do not use a random number to decide the duration of their opening phase, for example: the parachain auction starts at block 48,700 and will last until block 60,000, in this example “the candle is lit” from block 54,854 to block 58,275. This means that if at the end of the auction Moonbeam raised more DOT than the others, but during the period of the lit candle or block count Acala raised more DOT than the others, then the winner of the parachain will be Acala. This type of mechanism is made so that it is partial and there are no last minute offers that modify the decision in the open phase where offers will continue to be accepted, but offers with a greater probability of losing, since it can be found that the determined closing time it has retroactively preceded the time these offers were submitted.
Having said all this, knowing that despite tomorrow we will meet the first winner, it is also necessary to clarify that Polkadot already owns a parachain, which is a project called “Shell.” This is an empty parachain, whose main functions are to allow the commands of the Realy Chain (the brain of the network) to be updated, to guarantee the production, inclusion and completion of the blocks. Also, the winners of the first auctions will be incorporated on December 17, 2021, and will be guaranteed during the period from December 17, 2021 to October 20, 2023.
Impact on the DOT price
Since Polkadot made the operation of the parachains official on October 13, a lot of expectation was created around them, generating a rise in their value of 64.10% the following days.
As we mentioned before, Given that many current projects are competing to be the winner, this hype was reflected in the price of DOT, the network’s native cryptocurrency, which with that rise of 64% managed to exceed its previous ATH (USD 49.60) to thus registering a new historical maximum of USD 55.09, decision zone, golden pocket 1.618 in the Fibonacci extension of traders for taking profit.
And despite the fact that DOT has been one of the most affected in the last market correction, falling to USD 38.10, it has once again positioned itself above USD 40, the price zone of the lower Bollinger band, and which also coincides with the Fibonacci level of 50% in the 1-day chart, thus indicating that if Bitcoin keeps lateralizing or rising, it is likely that DOT will lateralize perhaps a few days between 40 and 45 dollars, to mark a new ATH, while the auctions continue since despite being an inflationary cryptocurrency without a total maximum supply, this would be achieving the withdrawal of a growing number of coins from the supply in circulation, and accompanied by the fact that the 50% Fibonacci level was also defended that would represent signals quite bullish fundamentals and techniques around the cryptocurrency.
It is important to point out that you should not consider this as an investment recommendation or trading operation, it is only an informative and technical note that the editor makes according to the behavior of the movements that occurs in the market, and does not expressly represent the overview of Cointelegraph in Spanish.
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