The first slot auction for Kusama will continue for a period of five days thereby facilitating the addition of parachains to the Kusama Relay chain.
On Tuesday, June 15, Polkadot’s Kusama council passed Motion 310 while confirming the first slot auction on the Kusama network. Polkadot governance platform Polkassembly shared details of the developments.
Nearly 66% i.e. 13 out of 19 “seats” on the Kusama council voted to commence the slot auction process. Last week on June 8, Kusama and Polkadot co-founder Gavin Wood published a schedule for the Kusama slot auctions. These slot auctions will facilitate the addition of parachains to the Kusama Relay chain.
As per the schedule shared by Wood, the first slot auction will continue for a period of five days. Of this, the first two days will facilitate preliminary bidding. The second slot auctioning will commence soon after announcing the winner for the first slot.
Earlier this month, crypto exchange Kraken also announced a parachain auction platform that allows clients to participate in the process directly from the exchange. As announced by Kraken, clients will be able to support bids for Kusama’s DeFi hub Karura along with the smart contract protocol Shiden.
Interestingly, the start of the slot auction has yet to trigger any price action for Kusama’s native KSM tokens. On the other hand, Polkadot’s DOT crypto registered a larger price rally of 15% on Tuesday.
Polkadot’s DOT Shoots 15% to $25
The news of the first-ever parachain auction for Polkadot’s Kusama triggered major price action for the DOT token. On Tuesday, the DOT price also surged by 15% moving to $25. With a marginal price correction today, DOT is trading at a price of $24.29 with a market cap of $23.2 billion.
In addition, the Coinbase Pro exchange announced that it will be listing DOT. The Nasdaq listed exchange noted:
Starting Today Monday June 14, transfer DOT into your Coinbase Pro account ahead of trading. Support for DOT will generally be available in Coinbase’s supported jurisdictions with the exception of Singapore. Trading will begin on or after 9AM Pacific Time (PT) Wednesday June 16, if liquidity conditions are met.
Besides, a large part of the Polkadot price rally has also been because of the surge in the development activity on the Polkadot blockchain network.
? #Polkadot is seeing one of its breakout days in quite some time, jumping +20% as #Bitcoin crossed back above $40k for the first time since May 26th. A promising sign that $DOT can fully recover is its continued rising #Github development activity. ?? https://t.co/nf3Sdj07Wj pic.twitter.com/1SpCSzs5JZ
— Santiment (@santimentfeed) June 14, 2021
Also, many market analysts think that the demand for DOT and KSM will continue to increase based on the competitive auction process. Alex Siman, founder of Subsocial — a Polkadot-based decentralized social network said that projects winning the Polkadot auction will contribute more value to the community.
“On the Polkadot parachain, the slots for projects to build on the chain is limited to 100, making the auction process notably competitive,” he explained. “A non-innovative project may not be able to win such auctions, and those who do will not want to waste the opportunity to go down in history.”
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.