What is DOT Slot Auction? Details how to participate to get maximum rewards
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Binance Earn just launched the DOT Slot Auction event with the participation of many crypto investors and had an incredible impact on the DOT price. What is DOT Slot Auction? What does the DOT Slot Auction event take place for? After reading the article below, investors will understand the working mechanism of the auction event and the know-how to participate in voting and receive the maximum rewards of this auction.
What is DOT Slot Auction?
DOT Slot Auction is a vote for Polkadot slot (DOT) auction projects on Binance. Currently, there are only about 100 Parachains positions. Therefore, tasks that want to rent space in the Polkadot (DOT) ecosystem on Binance must participate in the auction. Participants use DOT tokens to vote for favorite projects. The project that receives the most votes and bets on DOT will win the auction.
The winning project can rent parachain slots on Binance for three months per period, up to 96 weeks. The participant’s DOT number who bet is locked during the rental period. If the projects do not win, the auction participants will get their staked DOT tokens back to the Spot wallet on December 18, 2021.
What rewards do participants receive?
Participants in the auction will receive a reward of Binance Extra Bonus (approximately 30 million USDT) provided by Polkadot parachain projects during a 7-day Warm-up (Startup Phase). All rewards will be distributed according to their voting rights during this time before the auction begins. The prize the participant receives is proportional to the set amount of DOT in the total DOT of that project. Participants get updated rewards every hour. However, these rewards can be cumulative and not required by the participant every hour.
In addition, Binance will distribute 100% of the rewards from the projects to the voting participants during the auction and rental phases. Rewards are distributed to participants based on reward progress.
DOT Slot Auction Auction Process
The DOT Slot Auction auction process includes four steps:
Step 1: Warm-up stage
The warm-up period lasts seven days on Binance. Everyone participating in the auction will receive a total reward of 30 million USDT. The reward will be divided equally according to the number of DOT participants used to bid.
Step 2: Auction time
Auction time is the main stage in an auction. This is the time when participants vote and stake DOT for their favorite Parachain projects. The auction period consists of 5 rounds to select the winning project. The project that does not win the prize will be eligible to participate in the next auction round.
Step 3: Distribution of rewards
After the end of the auction period, the winning projects receive the right to use Polkadot (DOT) slot slots on Binance. The project period in which these positions are used is three months per term, up to a maximum of 96 weeks.
If the project wins, the person who voted gets 100% of the project’s reward, and the DOT used for voting is locked until the end of the Parachain lease period.
Step 4: Auction ends
After the auction ends, the leased Parachain project period is over, the voting participants’ DOT is unlocked and transferred to BDOT for 45 days.
How to participate in the DOT Slot Auction?
Step 1: Log in to the Binance account.
If you do not have a Binance account, register at the link below:
* See more: The complete guide Binance from a to z
Step 2: Prepare DOT for voting
To participate in the auction, participants need to have a minimum of 0.1 DOT available. If DOT is not available in the wallet, participants need to buy DOT with cash or convert other coins to DOT.
Step 3: Access the auction feature
- Click the Finance tab, select Binance Earn.
- Scroll down, click Go to DOT Slot Auction.
Step 4: Vote for your favorite project
On the auction page, read the information of the projects participating in the auction, click Vote for a favorite project. Vote window appears, fill in the required information, and click Confirm:
- Enter the number of DOT you want to deposit.
- Check the box to [I have read and agreed to Binance’s Staking Service Agreement].
After the confirmation, the voting for the project is officially completed, the participants are formally allowed to participate in the auction process and receive the rewards from the voted projects.
Above is information on how to participate in voting to receive rewards from the DOT Slot Auction event. Binance is a multi-functional platform, and there are many ways to make money and invest in Crypto. If investors are interested in investment forms on Binance, they can learn here.
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