Polkadot (DOT) Price Surges Ahead of Parachain Auctions

Polkadot (DOT), an open-source sharding multichain protocol is bullish, surging by over 17.5% in the last 24-hour ahead of its parachain auctions.

The platform that facilitates the cross-chain transfer of data or asset types is trading high today, reaching around $43. According to CoinMarketCap, Polkadot (DOT) token is trading at $41.26 at press time.

The price spike comes right after the proposal for Polkadot’s first parachain auctions was approved by its community on October 14. As per reports, these parachains are the “last piece of core functionality” that Polkadot needs to realize its goal of multichain interoperability.

Web3 Foundation member Joe Petrowski introduced the proposal on Polkadot’s community governance discussion platform, polkassembly.io. Petrowski said that the code for parachains, auctions, and crowdloans is ready for an initial production release, so Polkadot should be ready for this important move.

Note that the Parachain auctions decide which projects should receive one of Polkadot’s parachain slots. These slots are a limited number that can only be changed through a governance vote. Thus, the winners of these slots get the right to develop a parachain combined with the Polkadot blockchain.

According to the proposal, there will be 11 parachain auctions divided into 2 batches. The first batch starts on November 11, with 1 auction per week, and the second batch begins on December 23, but with 1 auction every 2 weeks. On top of that, both auctions will last for 7 days.