What is the Polkadot Slots Auction (DOT) and How it Works at Binance

You can earn rewards by supporting your favorite Polkadot DOT projects.

Cryptocurrency holders now have the chance to get more tokens with the DOT Slots Auction at Binance Earn. This is the safest and easiest way to earn rewards supporting your favorite Polkadot (DOT) projects.

After years of development, the Polkadot project is ready to launch so-called “parachains,” parallel blockchains that connect to the main network but have their own governance and token.

Since there are a limited number of so-called parachain slots, the Polkadot team decided to hold an auction of these slots.

The anticipated DOT slot auctions started in November 2021 and Binance, one of the largest cryptocurrency exchanges in the world, supports the development of the Polkadot ecosystem by providing support for the auctions.

Binance users can participate in the Polkadot Parachain Slots auctions on the Binance Earn platform. 

In addition to supporting your favorite Polkadot projects you can also generate passive income rewards.

Find out how to use your DOT holdings and participate in the DOT slots auction to earn more tokens.

What is a Slot Auction 

The Polkadot Slots Auction (DOT) is a parachain auction that aims to allocate slots (vacancies) to projects that wish to operate on the network.

Simply put, parachains are customizable blockchains that run parallel to the Relay Chain of the Polkadot ecosystem.

When integrated, these parachains benefit from the basic features and security of the main chain.

The Relay Chain currently supports about 100 parachains running at the same time.

Since the number of slots is limited, the Polkadot team created the Parachain Slot Auction so that projects can compete and thus distribute the parachains more fairly.

To obtain a slot, the project must win an auction by staking DOT.

In other words, those who lock more DOTs than other bidding projects can rent the slot and become a Polkadot parachain.

This process will be valid for both initial release and renewal at the expiration period of the lease. 

The Polkadot lease period has a maximum duration of 96 weeks.  

The time limit for bids is determined randomly after the opening phase of the auction. 

The project with the most bids is the winner. 

For example, if the auction lasts 14 days and the random snapshot drawn is 48 hours, all bids made after that period would not count in determining the winner.

Once the winner is determined, all DOT wagered is locked for the entire rental period. 

During the lockout period, the winning project will distribute its tokens as a reward to sponsors on a quarterly basis. 

The auctions started on November 11 with 1 new auction each week for the first batch of 5 auctions.

A subsequent batch of 6 auctions is scheduled to begin on December 23, 2021 with an auction occurring every two weeks.

The auction schedule is determined by the Polkadot board and is subject to change.

What is the Binance DOT Slots Auction

Binance offers support for the slot auction. Through Binance Earn cryptocurrency Holders have the chance to staking DOT and get tokens from the most exciting and innovative projects on the market

This is an easy and safe way to participate in Polkadot’s Parachain slot auctions.

You can vote for different slot auction projects at Binance and get rewards. 

To participate, log in with your Binance account at Binance Earn. 

The steps to join are simple. First, wager your DOT through Binance’s DOT slot auction and vote for your favorite project. 

If the project wins, you will receive a share of the new project’s tokens.

Stages of the Binance DOT Slot Auction

Binance’s DOT slots auction process is different from other auctions in that it offers the opportunity to support innovative projects and still earn token rewards.

The DOT Slots Auction was launched on Binance on November 4, 2021 and consists of the following steps: 

Warm-up Period

The Warm-up Period or Preparation Period occurs in a 7-day period before the official start of the auction.

In the case of the first lot, it took place at Binance between November 4, 2021 to November 11, 2021.

Users who wager their DOT in advance during the warm-up period have their participation rewarded with a “warm-up bonus” of $30 million shared and distributed to users according to their voting power before the auction begins.

The DOT wagered is locked and is inaccessible until the auction period ends.

Auction Period

Auction Period or Funding Period is the time the auction is open for you to vote by wagering your DOT on your favorite project(s). 

Reward Distribution

Projects that win the slot auction will lock in the assets wagered according to the project’s lease period and Binance will begin distributing rewards to participants.

Auction Results

If the project you chose wins the auction slot, your DOT will be locked for a maximum of two years. 

However, Binance will issue the BDOT, a tokenized asset that represents the DOT staking in a 1:1 ratio to be used while your DOT is locked.

In other words, you will have liquidity even during the staking period. 

Benefits of Binance’s DOT Slot Auctions

The main benefit of voting for parachain slot auction projects at Binance is getting extra rewards by participating in the staging period.

In addition, if the project you support wins, you will also receive the rewards from the voting. Binance will distribute 100% voting rewards to participants based on the amount of DOT you have locked up.

Along with other Binance Earn products, the DOT Slot auction benefits from Binance’s robust ecosystem and security. 

The largest cryptocurrency exchange does all the hard work, leaving you with a simple way to earn passive income from your DOT. 

Binance’s DOT slot auction benefits include:

  • Warm-up bonuses of $30 million in rewards for the first participants who vote for DOTs;
  • User funds safe and secure on the Binance platform;
  • Simple voting mechanism;
  • User-friendly, even for those who are not cryptocurrency experts;
  • Bigger rewards;
  • No minimum bet amount. You can start with as little as 0.0001 DOT.
  • Liquidity. Even with your DOT locked, Binance issues an indexed BDOT token at a 1: 1 ratio for you to use.
  • How to participate in Binance’s DOT slot auction
  • Participating in Binance’s DOT slot auction is very simple. Here’s step by step how you can wager and maybe earn rewards.

First, log in to Binance Earn and search for DOT Slot Auction.

On the DOT slot auction page you will find the overview of the ongoing projects. By clicking on one of them you can see more information.

Once you have chosen your favorite project, click on [Vote] and enter the amount of DOT you wish to contribute.

Is the DOT slot auction worth it?

The DOT (Polkadot Slot Auction) is a new way to invest. It allows you to get involved with the Polkadot ecosystem by helping the project you find most innovative while earning rewards.

By using Binance Earn, you get all the support and security of the platform of the world’s largest cryptocurrency exchange.

Choose your project and make your DOT work for you.

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