Polkadot, Kusama Jump Ahead of Next Parachain Auction
Polkadot and its canary network Kusama have rallied ahead of the second round of parachain auctions, which go live later today.
The Polkadot Ecosystem Rallies
Many Layer 1 blockchains soared in August, and now Polkadot is stealing the limelight.
Both Polkadot and Kusama, the two cornerstones of the Polkadot ecosystem, have put in significant gains ahead of the second round of parachain auctions. The DOT token has recovered from recent lows of $23.90 last week, rallying more than 25%. Kusama’s KSM token has done even better, soaring 50% over the past week before cooling off. They’re two of the crypto market’s biggest gainers of the last 24 hours, rising 16.4% and 28.4% respectively.
The bidding for the first slot of the second round of parachain auctions will go live today at 11:00 UTC, allowing participants to back their favorite project using KSM tokens.
Once allocated, the tokens will be locked up until one of two outcomes is reached. If the project wins the auction, KSM tokens will be bound to the project until the end of the one-year parachain lease, with contributors receiving additional native tokens from the project. On the other hand, if the project does not win the auction, KSM tokens will be returned to contributors.
As KSM tokens are needed to back projects in the auctions, demand has soared. Similar activity was observed in June, with Kusama jumping 36% before the first round of parachain auctions.
Kilt protocol has already gathered over 200,000 KSM tokens, close to the 220,000 contribution threshold, and looks likely to win. The winner of the first auction will be announced on Sep. 8.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article