It has been confirmed that crypto exchange Kraken has decided to add support for parachain auctions before the first rounds planned to take place on Polkadot’s cousin project, Kusama.
The crowdloan period has already begun today while the Kusama parachain auctions will begin on June 15th.
If one wins an auction for a slot, the entity will be allowed to leverage the Kusama relay chain, the place where transactions are finalized, for their projects. This mechanism will allow them to create new crypto assets and decentralized applications while relying on Polkadot‘s security ecosystem.
“Rather than give the projects with the most funding a parachain slot, the Polkadot team came up with parachain auctions as a method to distribute the available slots in a more equitable manner,” reads the official announcement.
Meanwhile, Kraken’s chief product officer, Jeremy Welch, declared: “Parachain auctions open up a whole new vista for cryptocurrency holders so they can back projects that will likely make substantive changes to various aspects of our lives.”
The auctions “enable free and fair community support for early-stage projects to flourish, while discouraging bad actors from attempting to exploit the mechanism as a quick cash grab,” declared Brian Hoffman, Kraken’s crypto platform lead. “By offering support for Parachain Auctions through our platform, Kraken clients can directly participate … without having to move their KSM off the exchange.”