Generic crowdloan information

What is a Parachain?

A Parachain slot is a custom, project-specific blockchain which is integrated into the Polkadot blockchain, also known as the Relay chain. The Polkadot ecosystem is unique in that it’s what’s called a “sharded” and “heterogeneous” system. Put simply, Polkadot is built in such a way that it can have the best of both worlds: the advantages that come with the unity of a single chain (the relay chain) and the advantages of having a separate, purpose-built chain (the parachains).
A parachain is a dedicated slice of the Polkadot network that can operationalize a project’s blockchain, leading to interoperability, shared security, and scalability.
Parachain slots are leased for 96 weeks at a time, which can be renewed either through a second crowdloan or by paying DOT from a project’s treasury. The Polkadot ecosystem is slated to have about 100 parachains. The vast majority of slots will be leased, but, outside of the leasing process, a few will be granted as “public good” chains through a collective decision of DOT holders via on-chain governance.

What’s a Relay Chain?

In general, the Relay Chain is responsible for the network's security, consensus, Polkadot governance, and transaction settlements. Thus, Parachains share the added benefits of the Relay Chain.

What is a Parathread?

Not all projects want a parachain slot. Some may want to experiment with the Polkadot ecosystem, while others may want to run a one-time event. A “pay-as-you-go” means of accessing Polkadot, a parathread allows projects to take advantage of Polkadot’s power and features without the commitment of a parachain.

What are Slot Auctions?

The Polkadot parachain auctions are for securing “slots” on the Polkadot network. Each slot (parachain) connects to the Polkadot Relay Chain. By securing a parachain slot, projects become long-term participants in the Polkadot ecosystem and benefit from its security and scalability.
Polkadot envisions that approximately 100 parachain slots will be auctioned. As there’s competition for these slots, not every project that wants to join Polkadot will secure one. To ensure a fair process that accurately gauges support for a parachain slot, Polkadot has implemented a specific kind of auction called a “candle auction”. At the close of a slot auction, the Polkadot Relay Chain randomly and retroactively chooses an effective end time within the auction, and whichever project had the highest bid at that time wins the slot.
Each lease has a slot lease period of 96 weeks which is divided into eight, twelve-week periods. When the lease period expires, one of two things may happen: the slot occupant may try to renew its lease, or leave it and let it go for bid to another parachain hopeful. The ongoing lease model is good for the Polkadot ecosystem—it ensures that network space isn’t taken up by slot squatters while rewarding parachains that are active, providing utility, and providing value to their stakeholders.

What is Crowdsourcing / Crowdloaning?

By Crowdlending or Crowdsourcing, DOT holders signal their support for Nodle's Parachain auction by bonding their DOTs to Nodle. If Nodle wins the candle auction, the DOT bonded tokens become locked to the Polkadot Network for the duration of the Parachain slot, which is 96 weeks, after which the tokens become unlocked and can be reclaimed by the DOT holder. It is impossible for Nodle to access any DOT securing the Parachain during the lease period.

What is Unbonding?

Holders of DOTs may bond their DOTs to stake services. Unbonding usually takes 28 days, but may vary based on where the DOT is staked. There is no need to worry if you currently do not stake.

What are Lease Periods?

A period of time that Nodle will occupy the Parachain. These last 96 weeks (2 years).

Last modified 16d ago