Popular altcoin Polkadot (DOT) is surging after a governance vote approved bringing parachain auctions to its protocol.
The crypto recently passed a motion on their open-source governance platform Polkassembly that authorized two batches of parachain auctions for the network starting in November. The approval kicked off a rally that saw DOT rise 26% from $32.21 to $42.16 in one day, according to CoinGecko.
[adinserter block="1"]Parachain auctions involve users bidding crypto assets during determined amounts of time to see which network will receive a parachain slot, a custom blockchain that confirms transactional accuracy.
The vote to bring parachain auctions to Polkadot comes after parachains were successfully launched on DOT’s canary network, Kusama (KSM). A canary network is a blockchain intended for testing future mainnet features.
As Polkadot stated in a recent blog post,
“Parachains have already been running successfully on Kusama, Polkadot’s ‘canary network,’ since the launch of Statemine on June 3rd, 2021. Since then, 11 parachain slot auctions have successfully taken place on Kusama, for a grand total of 12 live parachains.
The fact that such activity has been taking place on Kusama for over four months without significant issues is an important factor in considering parachains ready for launch on Polkadot.”
DOT’s price has since stabilized and is currently exchanging hands at $40.49.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
[adinserter block="1"]
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/dgtl.escapism
