Instructions to join DOT Slot Auction on Binance

Overview of Parachain Slot Auction

Polkadot Network has two types of blockchain:

• Parachain: Individual blockchains use Relay Chain to secure their networks.
• Relay Chain: The central blockchain of the Polkadot Network.

Relay Chain currently supports up to 100 parachains, which means The number of Parachain positions is limited and projects must compete with each other for a place in it. So to distribute parachains positions fairly, Polkadot created an auction of Parachain slots (Parachain Slot Auction).

More specifically, Parachain auctions will be open for a certain period of time, during which time DOT holders can Staking their DOT for the projects they want.

After the auction period ends, Polkadot will take a snapshot of the DOT that has been staked at this time. The project with the most DOT staking at the time of Snapshot will become the winning project.

Once a winner has been determined, all DOT that users Staking will be locked for a period of 96 weeks (almost 2 years). During this lock-in period, the winning project will distribute their Native tokens as a reward to the project’s supporters.

In addition, Binance will issue bDOT to qualified investors at a 1:1 ratio. bDOT token will be usable as DOT token on Binance while DOT is locked. If the project fails in the Parachain auction, the entire amount of DOT that the user has staked for the project will be returned to the user.

How to join Dot Slot Auction on Binance exchange

Here is an overview of how Dot Slot Auction works on the Binance exchange:

First, you log in to the Binance exchange. DOT tokens need in Spot account, if you have DOT elsewhere just transfer them to Binance Spot account, otherwise you need to buy DOT on Binance exchange.

If you do not have a Binance exchange account: Instructions to register and use Binance exchange

Voting stage

Next, access the interface “DOT Slot Auction” in: https://www.binance.com/en/dotslot

During the auction period (Auction Period), you choose “Ongoing”, this is where you vote by staking your DOT on your favorite project(s).

If the project ends up winning the Parachain Slot, your DOT will be locked for up to two years. However, Binance will issue bDOT for investors to use while their DOT is locked at 1:1 ratio.

Conversely, if your project does not win the Parachain Slot, your staked DOT will be returned after the auction period ends.

Claim rewards stage

After the Voting period ends, in the “DOT Slot Auction“, you choose “Claim Rewards” to process your reward, the reward will be transferred to your Binance Spot Wallet.

Advantages of joining Binance’s Dot Slot Auctions

One advantage when people join Binance’s Dot Slot Auctions:

• SAFU funds: Binance has a SAFU fund for users, in case there is a loss, Binance will have a fund to compensate for the loss of related users.
• Simple Voting Mechanism: Simple voting process on Binance’s Dot Slot Auctions, all it takes is one click for staking and voting. In addition, the cost of joining Binance’s Dot Slot Auctions is almost free.
• New user-friendly interface: Even if you are not a crypto expert, you can easily join and use Binance’s Dot Slot Auctions.
• There is no minimum: There is no minimum DOT staking, you can start with as little as 0.1 DOT.
• Liquidity solution: Your DOT may be locked, but Binance will issue a 1:1 pegged bDOT for you to use while your DOT is locked.

Frequently Asked Questions about Binance’s Dot Slot Auctions

Here are some frequently asked questions about Binance’s Dot Slot Auctions:

What is bDOT? If I sell my bDOT, can I still get the voting rewards for the selected projects?

bDOT is a crypto asset representing your DOT staked in Dot Slot Auction at a ratio of 1:1. It is a solution that provides liquidity to users during staking.

• If the project successfully bids for a Slot Auction, after the auction ends, you can choose to convert your DOT to bDOT on Binance.
• If you sold your bDOT during the lock-up period, you will still be able to receive voting rewards from your chosen projects but you will need bDOT if you want to redeem your DOT.

When joining Binance’s Dot Slot Auctions, how long will my DOT lock up? When can I redeem my DOT?

Your DOT will be locked starting from the voting period. If your chosen project wins the Parachain Slot, your DOT will be locked for about 96 weeks, after which you can redeem your DOT, it will take 3 days for the DOT to be returned to your Binance Spot account.

If the project you chose loses the bid, the DOT you staked will be returned after the first auction ends (scheduled for December 18, 2021).

Why can’t I participate in voting? Can I still get the voting rewards?

Voting is conducted on-chain and there may be delays or failures in voting. If your voting fails, your DOT will be returned to your Spot wallet in about two days and you will not be able to receive any voting rewards.

Why can’t I withdraw my reward tokens from Binance?

As some parachains are still in early development and have not launched yet, you may not receive the reward token as they promised. After projects successfully bid for parachain slots and launch their respective parachains, you can get rewards when Binance fully integrates.

In addition, it may also take some time for the withdrawal functions to be activated. According to the expected launch time given by the projects, Binance will support all reward token withdrawals before June 30, 2022.

If the project’s mainnet launch time is postponed, Binance will also postpone the token withdrawal time.

summary

Dot Slot Auctions is one of the basic ways for DOT holders to earn tokens of projects in the early stages of Polkadot ecosystem and Binance’s Dot Slot Auctions is one of the easy ways to join so if you intend to participate PLO then Binance is one of the top places.

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Disclaimer: All information in this article is for informational purposes only and NOT to be considered investment advice. Investing in cryptocurrencies involves extremely high risk and you should only invest the amount that you are willing to lose.

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