What is Polkadot Crowdloan?

Relay Chain can be thought of as <strong>the core of Polkadot.<\/strong> Essentially, it connects different parachains. Parachains, on the other hand, are similar to <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-plasma/">Ethereum Plasma chains<\/strong><\/a>. Basically, they can conduct transactions without relying on the Relay Chain. As a result, parachains can significantly <strong>improve blockchain scalability.<\/strong><\/p>\n<p>Parachain projects need to lease a slot for their parachains through the <strong>Parachain Slot Auction<\/strong> if they want to connect to the Relay Chain. Projects stake <strong>DOT<\/strong> tokens to bid for a spot in the auction. The ones that stake the biggest amount of DOT tokens become the parachains of Polkadot. They can lease a slot for around 3 to 22 months.<\/p>\n<p>The staked DOT is locked into the project's slot auction bid once the users engage in the crowdloan. The tokens stay locked in the parachain slot until the lease of a slot ends.<\/p>\n<p>You might be wondering how to get the DOT tokens. <strong>This is where Polkadot Crowdloan comes in <\/strong>since it can be used to obtain these tokens. Essentially, crowdloan is a <strong>crowdsourcing system.<\/strong> In a crowdloan, users stake DOT to support the parachain projects they favor. For doing that, they get various rewards, including tokens from the parachain they support.<\/p>","definition":"the process of staking DOT tokens in the Polkadot Slot Auction to support specific projects.","status":"published","meta_title":"What is Polkadot Crowdloan? Definition & Meaning | Crypto Wiki","meta_description":"Polkadot Crowdloan meaning: Polkadot Crowdloan - the process of staking DOT tokens in the Polkadot Slot Auction to support specific projects.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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