Polkadot introduced the idea of parachain auctions in late 2021, welcoming other blockchain projects to join the ecosystem through a bidding process. The idea is to have 100 parachain slots and launch auctions so different projects can become part of the Polkadot ecosystem. The auctions' dynamic is inspired by an auction system, popular in the 16th century to sell ships. A candle would be lit and the winner would be the one with the highest bid when its flame went out.
In order to benefit from Polkadot’s shared security features, Integritee intends to occupy parachain slots on both Polkadot and Kusama. A parachain slot is a limited resource. As demand for these slots is likely to exceed the supply, Polkadot has designed a unique auction framework to allocate the parachains to the projects generating the highest value for users. Each slot is allocated to the highest bidder in a modified candle auction.