Polkadot Next Stop $ 5 trillion TVL as DailyCoin generates more auctions

While the focus has shone and this year, the interoperable blockchain platform has achieved several significant milestones in its own right.

The network has not only allocated the slots of its first parachutes through the Kusama network this year, but also announced the creation of several untrustworthy bridges to connect the substrate-based chains. In the meantime, the complete audit of Polkadot’s codes was completed. Unsurprisingly, the price of Polkadot’s original DOT token has responded in the same way, reaching a high of $ 55 on November 4th, starting below $ 10 a year.

A Billion Reasons to Be Bullish

Against this backdrop, the first round of Polkadot parachute auctions recently began with ten promising projects worth nearly $ 3.5 billion. Cross-chain defi hub Acala Network was the author of the story, rejecting the Ethereum compatibility layer Moonbeam, claiming the girl slot. Of course, when Acala is included in block # 8179200 on December 18th, it will be joined by five other lucky auction winners.

Parachains are specialized blockchains that connect to Polkadot’s main Relay Chain, and represent the latest piece of basic technology described in Polkadot’s white paper. By March of next year, about 11 of those parachutes will be fully operational, with each slot “rented” for 96 weeks. This long-term commitment is apparently blocking users from the ecosystem, and everyone is speculating that the value of the DOT will increase during the lease period. To date, nearly 200,000 people have helped crowdloans to help with their favorite projects.

With $ 3.7 billion currently blocked, it is unthinkable that the figure will be closer to $ 5 billion at the end of the first auction. That’s the loan of the DOT crowd promised by the fan fans who have the cover on the game.

Of course, the success of Polkadot will ultimately depend on the application and use cases that pioneered projects like Acala and Moonbeam. With the 96-week clock running, a slot owner can’t stop or despair of the community that funded his auction campaigns. At least they didn’t go down without explaining themselves first.

DOT’s Tokenomics

The tokenomy of DOT is worth noting. Unlike many other crypto-assets, DOT has many uses within the Polkadot ecosystem, operating as a governance token, as a staking token, and for connecting purposes to a chain with Polkadot as a parachute.

Interestingly, those who choose to co-assign their DOT with the crowd have an impact on the APR for participation, as only unrelated DOTs can be used to participate in the former. Thus, the removal of DOT from partitioning reduces the DOT offer that is blocked in the participation contracts, while the APR increases. With that, the DOT demand can go up, and with it the price, following the compensation for crowdfunding. That’s the theory, anyway.

Surely, we can see that this dynamic is underway as the number of DOTs already shared has decreased and the betting rewards have increased.

One thing is for sure, the momentum that Polkadot has garnered so far seems to continue in 2022 as its auction calendar grows at a faster pace.

WOMAN’S MAGAZINE

Register to get the reverse of the crypto

Upgrade your inbox and receive our DailyCoin editor options 1 time a week directly from your inbox.

[contact-form-7]

You can always unsubscribe with a single click.

Continue reading in DailyCoin