Binance Launches $ 30 Million Warm Up Program For Users Entering DOT Slot Auction

Binance Exchange has notification Polkadots (DOT) Parachain Auction started warm-up from 8:00 p.m. on 4/11 (Synthetic Team time) to 7:59 p.m. on 11/11. All users who take part in the week-long warm-up share the $ 30 million worth of rewards.

Users choose the project they support and vote, enter the number of DOTs they want to participate in | Left: Binance

In addition to the bonus from the warm-up program, users will also receive any rewards distributed from the projects they vote on during the auction period and the DOT rental period.

The auction results will be announced at the end of each auction round. The results of the closing auction (round 5) will be announced on December 16, 2021 at around 7:59 p.m.

After the auction period has expired, the projects that win the placement auction have the right to use Polkadot slots for up to 96 weeks. The rental period should start on December 17th, 2021 and end on October 20th, 2023.

What is Polkadot (DOT) Slot Auction?

DOT Slot Auction is a parachain auction that uses the candle auction mechanism to distribute parachain positions on the Polkadot network. In order to receive parachain positions, projects must bid in the auction by staking DOT. Projects with the most DOTs win and become Polkadot Parachain. Slots can be rented for 3 months per term, with a maximum term of 96 weeks (2 years).

11/11/2021 is the start date of slot 1 of Polkadot with a total of 100 parachains to be auctioned.

What is BDOT?

Binance will provide a liquidity solution by issuing BDOT. Users can convert their staked DOT to BDOT at a 1: 1 ratio, and when the rental period for the Parachain location ends, users can convert DOT to BDOT at a 1: 1 ratio and vice versa. If you sell your BDOT during the parachain lock-in period, you can still receive token rewards from the coordinated projects. Once the blocking period has expired, you can exchange your BDOT 1: 1 back for DOT, with transaction fees and slippage (if applicable).

Reward

There are three types of rewards: warm-up rewards, slot auction phase rewards (select projects only), and DOT lock-in rewards. Binance will distribute 100% of all rewards to the users.

If your projects voted to win, you will be able to receive token rewards set by the projects based on the amount of DOT you have blocked. For example, if you vote for the Acala project, you will get the reward of ACA tokens back based on the amount of DOT you gave up.

During the 35 day slot auction, rewards will be distributed according to each Parachain project (if any). When projects distribute rewards, Binance distributes 100% of these rewards to users approximately 5 days after the auction period ends.

If the auction wins, the DOT will be locked until the end of the 96 week rental period. You should refer to the projects for the appropriate key reward. The main rewards are distributed over 9 sessions. The first token reward will be distributed 5 days after the auction period ends (approximately December 21, 2021) and subsequent rewards are expected to be distributed every 92 days. You can see the reward distribution on the Binance DOT slot auction page and can click to claim the reward.

If you don’t have a Binance account, register here to receive a 10% discount: shortcut

Note: This is the case when you join the Binance exchange, it does not apply to other exchanges or other crowdloan-enabled decentralized wallets. We will have separate tutorials on these wallets.

Bao Cong

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