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First round for Polkadot parachain raised over $1.4B so far

Updated: Jul 25, 2024
Published: Nov 11, 2021
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The first batch of Parachain auctions started on November 11th, attracting over 27 million DOT from over six projects, including Acala, Moonbeam, and Parallel being the favorites.

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Successful 1st round for the DOT parachain auctions

Polkadot parachain auctions are one of the biggest and most anticipated events in the decentralized finance sector. The so-called 'Polkadot council' recently passed the motion to enable parachain registrations and crowdloans for a public referendum. The first auction date was set for Nov 11, which successfully attracted 27 million DOT, equivalent to 1.29 billion USD. 

The leading project and liquidity hub of Polkadot, Acala (with 13M DOT), is expected to win the first slot in the parachain auction. Acala already gathered $608 million worth of DOT tokens in crowdloans from numerous participants. The next in line is the smart contracts platform, Moonbeam (with 8.25M DOT), followed by the Decentralized Money Market Protocol, Parallel (with 2.73M DOT).

The other networks succeeding the above include the multi-chain decentralized application layer, Astar (with 2.56M DOT), the private layer built for the entire Polkadot ecosystem, Manta Network (with 0.74M DOT), another smart contract platform, Clover (0.34M DOT) and a Decentralized Identity Aggregation protocol, Litentry (with 0.26M DOT).

Polkadot Crowdloans and Parachain auctions

Parachains are customizable and project-specific blockchains within the Polkadot (and Kusama) ecosystem that feed into the heart of the ecosystem, the Relay Chain. The Relay Chain is responsible for the network's security and other functionalities. As parachains are specifically-designed for certain use-cases, they are very beneficial for decentralized platforms built on Polkadot. 

However, there are a limited number of parachain slots available for each platform, looking to build a project atop the parachain. This is where crowdloans come into the picture. The Polkadot community decides who gets the slot by loaning their tokens for a two-year lease to the project they feel deserves the slot. Acala raised the biggest crowdloan amount and is expected to win the very first slot from the first DOT parachain auction.

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