DOT Slot Auction is a parachain auction. It uses a candle auction mechanism to randomize the exact moment the winner of an auction is determined. Projects require the most DOT biddings for the parachain slot, which can successfully be leased to become a Polkadot parachain, thereby achieving "cross-chain". Slots can be leased for 3 months per period, with a maximum duration of 2 consecutive years.
2. What rewards can I earn if I participate in the DOT Slot Auction?
You will receive the Binance Extra Bonus provided by Polkadot parachain projects during the Warm-up Period (approximately 30 million USD of rewards), and 100% of all rewards from your favored projects during the Auction Period and Lease Period.
3. What is the Binance Warm-up Bonus Rewards provided during the Warm-up Period?
Seven 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 in rewards). All rewards will be distributed during this period. Users need to vote for their supported projects and claim the hourly rewards. The rewards are cumulative, so users don’t need to claim every hour. Please note that if the projects successfully bid for the slot, your DOT will be locked for 2 years, and in return, you will receive the lock-up rewards from the projects. If the projects fail to bid for the slot, your staked DOT will be returned to your spot wallet on December 18, 2021.
4. How the Warm-up Period APY is calculated?
Earnings during the warm-up period are calculated every hour, and your rewards within the hour are calculated according to the proportion of the number of DOTs you have staked in the total number of DOTs in the project. APY is updated every hour, and the currently displayed APY is the APY of last hour. No APY is displayed in the first hour of open voting.
5. What is BDOT? If I sell my BDOT, will I keep receiving the voting rewards of my favored projects?
BDOT provides liquidity to users. It is a tokenized asset representing your staked DOT on a 1:1 basis. Binance activates the "convert to BDOT" feature within 45 days when the total auction period ends. You can choose to convert or not. If you sell your BDOT during the lock-up period, you will continue to receive the voting rewards from your favored projects. However, when the slot lease expires, you can swap BDOT to DOT in accordance with the amount of your BDOT holdings at the time of the swap.
6. How long do I need to lock my DOT? When can I redeem my DOT?
Your DOT will be locked from the Warm-up Period. If your favored projects win the slot, you can redeem your DOT after 96 weeks plus 3 days for settlement. If your favored projects fail to bid the slot, your staked DOT will be returned after the Slot Auction is finished. (Estimated date is around 2021-12-18)
7. Why would my DOT votes fail? If my votes fail, will I receive the voting rewards?
Voting is done on-chain. However, there are certain exceptions, such as voting delays or failures. If any of your DOTs or partial DOTs voting has failed, your DOTs are expected to be returned to your spot wallet within two days, and you will not receive any voting benefits or 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 aren't able to 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 mainnets launch times are postponed, Binance will also postpone the token withdrawal time.
9. Does it mean the native tokens of these parachain projects listed on DOT Slot Auction page will be listed on Binance?
No. For the trading and listing of tokens of the Polkadot (DOT) Slot Auction parachain projects on Binance, they will go through the same strict listing review process as Binance does for any other coin/token. Supporting the DOT Slot Auction does not guarantee the listing of tokens of the Polkadot parachain projects. Binance does not guarantee any listings as per its internal policy. Any projects that claim to be listed on Binance will be disqualified from listing review.