Binance launches a DOT Slot Auction Warm-Up bonus ($30M worth of rewards) to users

By Tsunami On Nov 4, 2021

Binance exchange has announced the launch a DOT Slot Auction Warm-Up promotion starting from 2021-11-04 at 13:00 (UTC) to 2021-11-11 12:59 (UTC). Users that participate in the 1-week Warm-Up promotion will receive a share of $30M in rewards.

Source: Binance

Users will receive the “Warm-up Bonus” provided by Polkadot parachain projects during the Warm-up Period (approximately 30 million USD worth of rewards). Users will also receive all the rewards distributed from your chosen projects during the Auction Period and Lease Period.

The auction results will be announced after every auction round ends. The results for the last auction round (round 5) will be announced approximately at 2021-12-16 12:59 (UTC).

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.

What is Polkadot (DOT) Slot Auction

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.

What is BDOT

Binance will provide a liquidity solution by issuing BDOT. Users will be able to convert their staked DOT to BDOT at a 1:1 ratio. When parachain slot lease period ends, users can redeem their staked DOT with BDOT at a 1:1 ratio. 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.

Reward

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.

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.

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 5 days after the auction period ends (approximately on December 21, 2021), 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.

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