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Polkadot unveils new details on its on-chain auctions for parachains

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  • Polkadot has released new details about its on-chain auctions and parachain slots, specifically “common good parachains”.
  • Parachains that serve as a common good to the network as a whole do not have to participate in the auctions or lock DOT tokens.

As CNF reported, Polkadot first published its roadmap for the rollout of parachains last week. Parachains are the final piece of the protocol’s core functionality outlined in the whitepaper to realize a scalable multi-chain architecture. About a key component, the parachain slots and on-chain auctions, the Polkadot team has now published a new blog post to introduce the component in more detail.

Since the Polkadot network will be composed of myriad parachains – each optimized for its own domain, such as smart contracts, identity, DeFi, or robotics – and the relay chain can support a limited number of parachains, chains must be selected that have access to their compute capacity. This is where on-chain auctions come into play.

The parachain teams “or perhaps even the chains themselves” can bid by expressing their willingness to lock DOT tokens for the duration of the parachain slot lease. The highest bidding parachains will be awarded the lease of the slot. However, there will be exceptions, slots that are allocated to parachains because they are “beneficial to the network as a whole.” These Parachains will also not be required to lock DOT tokens.

Polkadot’s common good parachains

To promote those very parachains that are beneficial to the commons, Polkadot introduces the concept of “common goods” as part of its governance process. Through a public referendum, network stakeholders can decide which parachain to register outside the auction process. The blog post explains:

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As with all decisions that go through public referenda, the network’s stakeholders have the final say in what passes and what does not. Understanding this, we may initially see two categories of blockchains that qualify as common good chains in the Polkadot network: system level chains and public utility chains.

System level parachains shift functionality from the relay chain to parachains, minimizing the administrative use of the relay chain. Examples, according to the Polkadot, include “parachains for balances, elections (for both staking and Council), governance, and identity.”

Eventually, the Relay Chain could become transactionless, as in, it would only validate parachain state transitions and all of its current transactional functionality would exist within parachains.

Public utility chains add new functionality that does not yet exist and that stakeholders believe adds value to the entire network. Examples could include “bridges, generic asset chains, and DOT-denominated smart contract platforms” that operate without a new token but with DOT or KSM (Kusama). Ultimately, however, system level parachains will likely play a more important role:

Because public utility chains add functionality beyond the scope of the Relay Chain, we expect the network stakeholders to approve them only in rare scenarios. The vast majority of common good chains will likely be the unopinionated system level chains.

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Polkadot-based DAO aims make decentralized governance more accessible

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A new decentralized autonomous organization is determined to become the DAO that serves all other DAOs.

Looking at it narrowly, the goal of SubDAO Labs is to provide small to mid-size organizations with the tools they need to move beyond centralized governance models and form feature-rich, effective, and sustainable decentralized autonomous organizations.

Arguing that the DAO governance model “has gone from obscurity to the preferred form of governance for most blockchain projects,” SubDAO believes one of the biggest stumbling block to its widespread adoption is that “it is not practical for smaller organizations or those without sufficient fund to develop their own governance tools.”

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While organizations like Aragon and DAOHaus have made available tools and smart contracts that meet basic governance needs like voting and fund management, other more advanced but common needs — like decentralized arbitration, credit-based lending platforms, DOA-governed social media platforms, and decentralized communication platforms — “are difficult to satisfy with the existing toolchains,” SubDAO says.

More broadly, however, SubDAO is on a mission it refers to repeatedly in blog posts, and its ambitions extend far beyond crypto and blockchain:

“Our vision is to integrate DAO governance into every aspect of life, by exposing everything in the sunlight and eliminating oppression. Ultimately, the hierarchical concept will be removed, and everyone will be able to embrace freedom.”

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The DAO structure “makes it possible for the old social system to go through earth-shattering changes,” SubDAO says, predicting that “when DAO is mature enough to replace traditional organizations, there will be a major social change.”

The nitty gritty

To achieve that integration, SubDAO is building a DAO creation and management platform on Polkadot, a nominated proof-of-stake decentralized blockchain. Created by Ethereum co-founder Gavin Wood, Polkadot powered its way from sub-100 into the top 10 cryptocurrencies by market capitalization in just a few weeks in August and September.

The core of that creation and management platform is the four-part SubDAO Network, designed to make the creation of customized, feature-rich DAOs a quick-and-easy process of a few clicks in just 15 minutes. The Substrate-based platform includes nodes, a software development kit, a user interface for apps, and a library of SubDAO smart contract templates.

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Polkadot price presents buy opportunity before DOT triggers 65% breakout

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  • Polkadot price is currently consolidating inside the $40.06 to $48.34 supply zone.
  • DOT might dip to the $37.50 support floor from where it may catalyze a 65% bull run.
  • A decisive close below $33.27 will invalidate the bullish thesis.

Polkadot price is facing enormous resistance as it sits inside a supply zone. Clearing this barrier will open the path for DOT to retest its all-time high and set a new one.

Polkadot price prepares for massive move

Polkadot price has risen 321% since its bottom on July 21 at $10.37. DOT is currently trading inside a supply zone, ranging from $40.06 to $48.34. This barrier has prevented Polkadot price from moving higher over the past eleven days and shows the same will continue going forward.

Investors can expect Polkadot price to retrace to the $38.76 support level before moving to the said supply zone. In some cases, DOT might briefly dip into the demand area, ranging from $33.27 to $37.50.

Either way, these retracements provide market participants with an opportunity to accumulate DOT for the incoming yet explosive move higher. If Polkadot price produces a decisive close above $48.34, it will indicate the start of an uptrend. In this case, DOT will head to retest the 100% trend-based Fibonacci retracement level at $53.88 or a new all-time high.

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This move will likely extend further to the next level at $71.43, where Polkadot price will make another record high after a 65% ascent.

DOT/USDT 1-day chart

DOT/USDT 1-day chart

Regardless of the bullishness surrounding Polkadot price, a breakdown of $33.27 will indicate a weakness among buyers. This move will also invalidate the bullish thesis.

Under these circumstances, Polkadot price might revisit the $25.49 foothold.

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Polkadot price analysis: Bullish momentum faces break down at $43.6 level

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  • Price has receded down to $43.64.
  • Polkadot price analysis confirms bearish return.
  • Support is rigidly standing at $30.19.

The price is going down once again as the latest Polkadot price analysis is confirming the bearish comeback. The price has undergone a decline during the last 24-hours, as the bears interrupted the bullish current by bringing the price down. The price is now following bearish movement momentarily and has moved down to the $43.64 level in the last 24-hours. The bearish momentum has been trending in the last four hours as well.

DOT/USD 1-day price chart: Bears drag price down to $43.64 level after gaining strength

The bears are striving for reestablishing their position on the price chart as can be observed from the one-day Polkadot price analysis. Today, a bearish price movement has been observed as the DOT/USD price devalued to $44. Although the bulls have been reigning on the whole, the price has decreased during the day because of bearish momentum. The moving average (MA) for the day is standing at the $42.73 level.

Polkadot price analysis: Bullish momentum faces break down at $43.6 level 1

The volatility has been decreasing which is why the Bollinger band average is now at $39.06. Whereas the upper Bollinger band value is at $47.93 for now whereas the lower Bollinger band value is at the $30.19 position. The Relative Strength Index (RSI) score is yet to reach 70 and is still standing at 64.66.

Polkadot price analysis: Price decrements to $44 as downward trend continues

The four hours Polkadot price analysis shows that the bears have been at lead for the past few hours. The price has been falling down quite consistently with a few bullish price movements recorded here and there. The price has undergone a decline in the last hours as well and is now settled on the $43.64 mark. The moving average, on the other hand, is dictating its value at the $43.94 position.

Polkadot price analysis: Bullish momentum faces break down at $43.6 level 2
DOT/USD 4-hours price chart. Source: TradingView

A crossover between SMA 50 curve and the SMA 20 curve was recorded earlier, which is another confirmation of a downtrend. The Bollinger bands indicator is showing the following values in the four hours price chart; the upper value is $45.59 whereas the lower value is $42.3. The RSI score is at a quite average position and is at 51.22.

Polkadot price analysis: Bullish momentum faces break down at $43.6 level 3
DOT/USD technical indicators chart. Source: TradingView

The overview of cryptocurrency progress shows promising results which is why the technical indicators chart for DOT/USD is going bullish. There are 15 indicators settled on the buying mark, nine indicators on the neutral mark, and two indicators on the selling mark.

The moving averages indicator is displaying favorable results for the buyers as well as it is giving a strong buy signal for the day. A total of 13 indicators are there on the buying position while one indicator each is sitting on the selling and neutral positions. The Oscillators, on the other hand, are showing neutrality with eight oscillators at the neutral position, two oscillators at buying position, and one oscillator at the selling position.

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Polkadot price analysis conclusion

The one-day, as well as the four hours Polkadot price analysis, is showing slightly unfavorable results for the cryptocurrency. That is because the price has covered downward movement during the day and has undergone a decline up to the $43.6 level. It can be expected that the price will go down even further as the bears have been dominating for the last four hours as well.

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