What is a Polkadot Parachain?
Polkadot is a network protocol that allows data to be transferred across blockchains. Incredibly useful in this era of multiple chains. In layman terms, Polkadot is made up of a ‘Relay Chain’ and 100 ‘Parachains’. Parachains are project specific blockchains which connect to the Polkadot Relay Chain. They are the ‘multichain’ part of Polkadot’s architecture.
The Enjin blog paints a useful analogy to better understand the architecture.
“The Polkadot Network consists of a Relay Chain (that’s like a shopping mall building) and up to 100 Parachains (the individual stores that can be rented out).”
The question then arises, how do you obtain one of the parachains? How do you harness the power of the integrated, interoperable architecture and be part of the future of the decentralised Metaverse?
The answer is the Polkadot Parachain Auctions.
The Parachain Auctions
To quote Polkadot: “Parachains connect to Polkadot by leasing a slot on the Relay Chain for up to 96 weeks at a time, with the option to renew. Parachain slots are assigned by an on-chain auction, with auction winners locking up a bond in DOT for the duration of the lease.”
There have been three parachain auctions completed to date, with the fourth underway as of December 2nd. Competing technologies participate in a candle auction, the winner ‘receives’ the parachain. The winning parachain is onboarded the 17th December.
Efinity needs the community to stake their DOT to win the fourth auction. By lending your DOT, you add power and presence to Efinity. In return there will be financial rewards, but more than that, you will be part of something bigger, something which transcends financial wealth, the future of the Metaverse.
As part of the Enjin ecosystem, EnjinStarter is proud to support Efinity by participating in the auction.
In this article, we’ll delve into the Polkadot parachain auctions, and explain how you can join us and stake your DOT. We’ll also have a look at the rewards on offer to those who join.
How to Support Efinity in the Polkadot Parachain Auction
There are numerous ways you can participate in the Polkadot parachain auction and contribute to the Efinity Crowdloan. From using an exchange, to setting up your own Polkadot wallet, you choose the method which suits you.
Exchanges
Using an exchange is among the easiest ways to contribute. Binance, Huobi, OKEx, Kucoin, Gate.io, and Kraken all support the Polkadot parachain auctions. Simply log in to your exchange, follow the parachain auction links and vote for Efinity by staking your DOT.
This video from Enjin has a breakdown for each of the aforementioned exchanges.
Always remember to leave 1 DOT in your wallet after staking. Failure to do this will result in the ‘closure’ of your Polkadot address.
Polkadot.js.org
You can vote for Efinity in the parachain auction by using your Polkadot account and a browser extension. This method is slightly more complex but has the upside of not leaving your DOT locked up on an exchange for two years. This video from Polkadot explains exactly how to set up your Polkadot wallet and send DOT in support of the Efinity crowdloan.
Parallel Finance
Parallel Finance offers additional rewards in the form of the PARA token.
Bifrost
Bifrost has launched support for the Efinity Crowdloan on https://bifrost.app/vcrowdloan.
Wallets
In addition to the Enjin Wallet DApp Browser, you can contribute to the auction using the following wallets:
Again, remember to keep 1 DOT in your wallet so as to be recognised by the network.
Get Rewarded for Your Support
Pushing the interoperability and cross chain magnificence of an open Metaverse may not be enough for everyone to participate in a piece of blockchain history. Fortunately, there is a generous rewards program for those who participate.
Remember you will be locking up your Dot for 96 weeks, rewards will be available at the end of that period. An added bonus is that you won’t be able to sell your Dot during this time, meaning you will have all those gains on your original investment, as well as the rewards.
EFI Tokens
10% of the total Efinity supply is earmarked for rewards. That is 200,000,000 tokens. These will be distributed according to the amount of DOT you invest. It is calculated according to the following formula:
(Your DOT Contribution / Total DOT Contributions) * 200 Million EFI
You can calculate the rewards you will be entitled to on the Official Efinity Crowdloan website. Remember that these numbers will fluctuate as more people invest in the auction.
NFT Rewards
In addition to EFI tokens, Enjin is also offering NFT rewards for Crowdloan supporters:
- Degens: The Degens are coming! The top 250 Crowdloan contributors will each receive one special NFT, and 250 NFTs will be randomly distributed to lucky winners from the new Degens collection (10,042 total supply).
- Pluto Alliance: Enjin has partnered with BitBoy Crypto to reward select participants with limited-edition Pluto Alliance NFTs.
Join the Movement
The future of NFT gaming and the Metaverse is yet to be decided. The next few weeks could see great steps taken towards an open, decentralised, cross-chain future with Enjin and Efinity at its heart. If you want to make a difference and be part of the future, then Efinity is the only project to vote for in the Polkadot parachain auctions.