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.
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.
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Author: Daily Hodl Staff