1. Do Polkadot ecological projects need to bid for 2 slots?
PolkaWorld: This depends on the situation of the ecological project. Currently in the Polka Eco project:
If the ecological project has only one network, he can choose to bid only for Kusama parachain slots, such as KILT; or only bid for Polkadot slots, or bid for Kusama, and then switch to Polkadot for bidding, such as Bifrost.
If the project team has two networks, a canary network and a main network, they should run two parachains on Kusama and Polkadot at the same time, which means they will participate in the auction on both Kusama and Polkadot! Such as Acala, Plasm are like this.
There are also projects that have three networks, an independent chain network, a Canary network connected to Kusama, and a main network connected to Polkadot, such as ChainX. This is also auctioned twice, once on Kusama, and once on Kusama. When bidding on Polkadot, the independent chain is used to run alone!
In this, everyone has to figure out a concept, that is, the purpose of the auction is to use the security of the Kusama relay chain or the Polkadot relay chain, so it is not the Kusama slot that is auctioned, and then it will be translated to the Polkadot slot. Kusama and Polkadot are For two independent chains, which one needs to be connected to which parachain slot needs to be auctioned. You can bid for the Kusama Parachain first, and then bid for the Polkadot Parachain after the expiration date, but if there is no successful Kusama slot, you can move to the Polkadot slot. This is incorrect!
2. Will staking and slot-locked KSM/DOT cause KSM/DOT deflation in the secondary market? Will this promote higher DOT prices?
PolkaWorld: In Polka’s token design, the best allocation ratio is Staking: Slot Auction: Circulation = 50%: 33%: 17%. This is the ideal state of a game, that is, the staking rate is 50%. At the time, the validator and nominator’s income is the highest, any higher or lower than 50% will bring about a decrease in income, so this will cause the staking rate to gradually tend to 50%. The rest who want to maximize the value will naturally choose the parachain to lock, but this does not really guarantee the maximum value, because you have to measure the income of staking and the income of slot locking, so bidding for the parachain The project will provide its own tokens as a reward to incentivize everyone to lock in the parachain. Ideally, this is a deflationary process. In economics, deflation will increase value. I am looking forward to seeing what the market will look like in the end!
From another perspective, before the parachain, Polkadot was just Polkadot, just a meta-agreement with an infrastructure, and its value is only Polkadot’s own value. But after the parachain, it is the beginning of Polkadot’s ecology and the beginning of Polkadot’s value capture. The largest part of the value distribution may come from the incremental market of Polkadot’s DeFi ecosystem!
3. What impact does the slot auction have on the ecological development of Polkadot?
- As mentioned earlier, first of all, this really opened up the development of Polkadot’s ecology and also opened up the value capture of Polkadot!
- The second is that we can really screen out growing ecological projects through communities, markets, and capital. Through slot auctions, build a healthy Polkadot ecology from the very beginning!
- Immediately after the auction, we have truly entered the multi-chain era of interoperability. Together, we can look forward to what surprises there will be!
- 4. Regarding Polkadot, there have always been two voices in the market. One is that Polkadot is the next Ethereum, and the other is that Polkadot slot auctions and EOS node elections are highly similar, and it is the next EOS. What do you think of these two views? What role is Polkadot playing?
PolkaWorld: I’ve talked about this issue many times before… Briefly, Ethereum and EOS are both single-chain smart contract systems, and Polkadot is a scalable heterogeneous multi-chain system. This means that Polkadot is not like those existing Layer 1 single blockchains that focus on different functions. For example, Bitcoin is a system that implements peer-to-peer transactions, Ethereum and EOS focus on smart contract functions, and Filcoin focuses on storage functions, etc. These are all single blockchains, and Polkadot is a Layer0 meta-protocol that does not provide any inherent functions, but only provides security!
What’s more, the single-chain systems of Bitcoin and Ethereum mentioned above have in common that each chain needs a node that can maintain chain security. Especially for PoW chains, we know that mining machines that maintain chain security bring The cost is very high. The role of Polkadot is to provide security for these specific functions of the single chain. You only need to focus on your specific functions. While saving development costs and maintaining chain security costs, at the same time, Through the Substrate technical framework, you can also make your chain customizable and enjoy the interoperability brought by the Polkadot ecology! This is Polkadot’s role, providing security for Layer1!
Slot auctions and EOS campaigns are not the same thing. There is no so-called “highly similar” between the two. Slot auctions are essentially a process of locking DOT/KSM renting “validator nodes”, which is a real scarcity. Competition for resources! The main body participating in the auction is a chain, and the result is that this chain can be launched on the main network and run safely, and it is not about making any profits! EOS node election is a process of voting for nodes with EOS. It is a competition for “network income dividends”. The main body of the election is a node, and the result is that the node can pay dividends!
5. Compared with Ethereum, is Polkadot a new technological high point?
PolkaWorld: Polka World certainly represents the most cutting-edge blockchain technology at present! Ethereum is an innovation in smart contracts, but smart contracts have too many limitations, so Polkadot has realized the innovation of the chain. From the very beginning, we hope to provide a more low-level and more general Layer0 meta-protocol! Ethereum is currently the second largest blockchain, but it is a single-chain system. Polkadot has been a multi-chain system against one-chain dominance from the beginning! Just as we must move from the stand-alone era to the Internet era, this is the direction of technological advancement!