Native tokens of sister networks Polkadot (DOT) and Kusama (KSM) have rallied today following a start of Parachain Auctions as Acala Network raised over USD 100m in KSM for its Karura network.
DOT has appreciated nearly 10% in the past 24 hours, and currently (09:30 UTC) trades at almost USD 24. KSM rallied over 18%, hitting USD 512.
Polkadot is a sharded protocol that enables different blockchain networks to operate together. It allows connecting and launching blockchain applications by using parachains (sovereign blockchains, or shards, with unique functions) to link to different networks. Kusama, the canary network of Polkadot, has its own parachain, Karura, that was built by the Acala Foundation.
As described by Polkadot and Kusama creator Gavin Wood, Parachain Slot Auctions are meant to allow projects to secure a place within the Polkadot and Kusama ecosystems. The auctions will continue to be rolled out during the coming weeks, when various projects will be able to make bids to secure a lease to build on Kusama. In his words, the auctions are “a market-efficient way of selecting which parachains will be added to the Kusama Relay-chain and have their functionality become a part of the Kusama network.”
According to Wood's post, the next five slot auctions will happen over the next five weeks with a brief pause for evaluation. Parachain auction dates on Polkadot are yet to be decided.
Acala Network, Pokaldot’s DeFi hub and parachain, seems to be winning the community’s support at the first Kusama Parachain Lease auction for its Karura network, as, at the time of writing, it raised over USD 100m in KSM. The funding came from more than 900 addresses on Kraken exchange and over 7,600 backers via the Karura portal, per data shared with Cryptonews.com.
“This level of support for our launch of Karura on Kusama, and later Acala on Polkadot, is proof of the positive demand for interoperable, decentralized financial products,” Ruitao Su, Co-Founder and CEO of Karura and Acala, said. _ Learn more: Polkadot Investors Unimpressed With Tether News Ethereum Needs to Try Harder To Keep Its Dominance in a Multichain Future