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Polkadot (DOT) Parachain Slot Auction Rules

Polkadot (DOT) Parachain Slot Auction Rules

2021-11-03 12:25

Polkadot (DOT) Slot Auction frequently asked questions

1. What is Polkadot (DOT) Slot Auction and how does it work?
Polkadot (DOT) Slot Auction is a parachain auction. It adopts a modified version of the candle auction mechanism to distribute the available parachain slots. To acquire a parachain slot, projects need to bid in the auction by staking DOT. Teams with the most DOT support can lease the parachain slot and become Polkadot parachain. Slots can be leased for 3 months per period, with a maximum duration of 96 weeks.
You can vote for different parachain slot auction projects on Binance and receive rewards. In addition, if the project you vote for wins the bidding, you will also receive voting rewards. Please note that your DOT will be locked on the chain until the end of the lease.
2. What rewards can I earn if I participate in the Polkadot (DOT) Slot Auction?
You will receive the “Warm-up Bonus” provided by Polkadot parachain projects during the Warm-up Period (approximately 30 million USD worth of rewards). You will also receive all the rewards distributed from your chosen projects during the Auction Period and Lease Period.
3. What are the Binance Warm-up Bonus Rewards provided during the Warm-up Period?
7 days before the official start of the DOT parachain Slot Auction, Binance and the parachain projects will provide a special warm-up bonus to Binance users (approximately 30 million USD worth of rewards). All rewards will be distributed during this period. To claim the rewards, you need to stake DOT in the project you support before the Slot Auction. The rewards are cumulative, you don’t need to claim them every hour.
Please note that if the projects you voted for win the slot bidding, your DOT will be locked for 2 years, and in return, you will receive lock-up rewards from the projects. If the projects fail, your staked DOT will be expected to return to your Spot Wallet on December 18, 2021.
4. How is the Warm-up Period APY calculated?
Earnings during the warm-up period are calculated every hour, according to the DOT you have staked in proportion to the total DOT staked in the project in an hour. APY will be updated every hour, you can see the APY of the last hour on the page. No APY will be displayed during the first opening hour of voting.
5. What is BDOT? If I sell my BDOT, can I still receive the voting rewards of my chosen projects?
BDOT is a tokenized asset representing your staked DOT on a 1:1 basis. It provides liquidity for users during the staking period.
When the project successfully bid for a slot and 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 can still receive the voting rewards from your chosen projects. However, when the lock-up period ends, you can swap your BDOT back to DOT on a 1:1 basis.
6. How long do I need to lock my DOT? When can I redeem my DOT?
Your DOT will be locked starting from the Warm-up Period. If your chosen project wins the slot, you can redeem your DOT after 96 weeks. After that, it will take 3 days for funds to be returned to your Binance account.
If your chosen project loses the bidding, your staked DOT will be returned after the Slot Auction ends (Estimated on December 18, 2021).
7. Why couldn’t I vote? Can I still receive the voting rewards?
Voting is conducted on-chain and might experience voting delays or failures. If your DOT voting has failed, your DOT will be returned to your Spot Wallet in approximately two days, and you cannot receive any voting rewards.
8. Why can’t I withdraw my reward tokens from Binance?
As some parachains are still in the early development stage and haven’t launched, you can’t receive reward tokens yet. After the projects successfully bid for the slot and launch their respective parachains, you can receive the rewards when Binance fully integrates the networks. It may take some time for the withdrawal functions to be enabled too. According to the expected launch time given by the projects, Binance will support all bonus reward token withdrawals before June 30, 2022. If the project's mainnet launch time is postponed, Binance will also postpone the token withdrawal time. Supporting the withdrawal of these tokens does not guarantee any listings as per its internal policy.

Staking rules

1. Where can I find my DOT after the Warm-up Period ends?
After the Warm-up Period ends, the Auction Period begins. The DOT tokens you used during the Warm-up Period will automatically be locked through Binance to vote for the project you chose.
2. What is the Auction Period? When does it start and when does it end?
Binance supports the first five rounds of DOT slot auctions. Each auction lasts for 7 days, for a total of 35 days. The auction period starts on November 11, 2021, and ends on December 16, 2021. After each round of auctions, the winner of the slot auction will be announced. As the next round of auctions begins, the projects that did not win the last round will continue to participate in the auction. After all five rounds are over, the Auction Period will end.
3. I voted in the Auction Period, where did my DOT go?
After you vote, Binance will regularly aggregate your votes and other users' votes to proxy votes on the chain. Your DOT tokens will be locked on the chain in the crowdloan pool of your chosen projects.
4. Can I vote multiple times? How many projects can I vote for?
There is no limit to the number of votes. You can vote for multiple projects you support.
Please note that every time you vote, the corresponding amount of DOT will be locked, and Binance will proxy your vote on the chain for the corresponding projects. DOT will not be returned to your Spot Wallet until the corresponding lock-up period ends.
5. What is the Lease Period? When will it start? When will it end?
After the Auction Period is over, projects that win the slot auction have the right to use the Polkadot slots for a maximum of 96 weeks. The Lease period is expected to start on December 17, 2021 and end on October 20, 2023.
If the project you support has won the slot auction, your DOT will be locked-up until the end of the Lease Period (96 weeks). After settlement, the corresponding DOT will be returned to your account in approximately 3 days.

Reward rules

1. What rewards can I get for participating in the Polkadot Slot Auction?
There are three types of rewards: Binance Warm-up Period Extra Bonus rewards, Slot Auction Period rewards (available for certain projects only), and Lease Period lock-up rewards. Binance will distribute 100% of the rewards to users.
  • If you participate in Binance's DOT Slot Auction Warm-up event, you can get extra Warm-up Period rewards provided by Binance and the listed parachain projects;
  • Some projects might subsidize supporters’ income during the 35-day Auction Period;
  • If your chosen projects win, you can get the lock-up reward set by the projects based on the amount of DOT you locked up.
2. How can I receive the Warm-up Period rewards?
All users who vote during the Warm-up Period can claim their rewards every hour, or accumulate the rewards to claim at the end of the period.
3. If the project I voted for lost the slot auction, can I still get rewards?
If you participate in the Warm-up Period voting, even if the projects you voted for lost the auction, you can still receive the Binance Extra Bonus rewards.
4. If I participated in the Warm-up Period and voted for the winning projects, will I receive multiple rewards?
Yes, you can receive the Binance Extra Bonus rewards every hour during the Warm-up Period, and you can also receive the lock-up rewards after the auction ends. Therefore, it is highly recommended that you participate in the Warm-up Period voting.
5. Why can't I see rewards after participating in the Warm-up Period?
During the Warm-up Period, rewards will be issued every hour. Please wait patiently after you vote, you will see the [Claim Rewards] button after one hour. You can click to claim your rewards.
6. Why are there no rewards to claim during the Auction Period?
During the 35-day Slot Auction Period, rewards will be distributed by each parachain project (if any). Some projects will subsidize users' income during the 35-day voting period and some won’t. If the projects distribute any rewards, Binance will distribute 100% of it to voting users based on the amount of DOT they have locked, approximately 5 days after the Auction Period ends.
7. What are the lock-up rewards during the Lease Period? How long will the rewards be distributed?
If the projects you voted for win the slot, your DOT will be locked until the end of the Lease Period for 96 weeks. You may refer to the projects for their corresponding lock-up rewards.
The lock-up rewards will be distributed in 9 sessions. The first lock-up reward will be distributed approximately on February 16, 2022, and subsequent rewards are expected to be distributed every 92 days. You will see the reward distribution on the DOT Slot Auction page and you can click to claim the rewards.
Please note:
1. The reward information displayed on the Binance Polkadot Slot Auction page (including but not limited to the total rewards during the lease period, the proportion of the Warm-Up Bonus to the total supply, the minimum reward ratio, etc.) are extracted from the public information of the projects and are subject to change. Binance reserves the right to make adjustments without notifying users.
2. If the Polkadot team postpones the auction, the DOT staked during the Warm-Up period will remain locked until the auction is officially reopened. Please note that the Auction Period and the Lease Period will be postponed accordingly.
3. If the Polkadot or the parachain projects encounter unexpected circumstances, such as suspension, termination of business, bankruptcy, etc., Binance will not bear any responsibility for asset losses caused by potential risks, such as but not limited to abnormal suspension or cessation of trading.
4. Not every Polkadot (DOT) Slot Auction parachain project tokens will be listed on Binance, and any projects participating in the Polkadot Slot Auction don't indicate that they are in business cooperation with Binance. Any projects that claim they will be listed on Binance in the future or is in cooperation with Binance will be disqualified from listing review.
This document may have been translated and published in different languages. In the event of any inconsistency, misstatements, omissions, or errors appearing in any translated version, the English version shall prevail.