Parachain slot auctions follow a modified candle auction format.
Generally speaking, the exact endpoint of an auction is determined. However, the Polkadot Parachain auctions don't have the exact endpoint. The endpoint is randomly chosen after the auction and the winning Parachain at the specific point wins the auction. Hence, the best strategy is to encourage contributers to lock KSM as early as possible.
Polkadot and Kusama Network have the same auction mechanism as described below.
Step1: Choose the lease period We bid the longest periods and the amount of KSM/DOT we are willing to lock up for the duration of the chosen range.
Step2: Open bidding Open bidding and accept KSM/DOT tokens from our community for the duration of the auction.
Step3: The end point was randomly chosen At the end of the auction, the precise moment of the auction’s close is randomly determined by a verifiable random function.
Step4: Become a Parachain The winning Parachain is automatically becomes a Parachain. KSM/DOT tokens remain locked for the duration of the lease.
Step5: Bid another slot Before expiring the lease period, we will bid another slots to become a Parachain again.