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The shift from parachain auctions to Agile Coretime in Polkadot 2.0, as proposed by Gavin Wood, reduces the capital-intensive nature of auctions, potentially broadening participation and boosting DOT’s investment appeal. Previously, auctions locked significant DOT (e.g., 10% of supply by 2023), supporting price through scarcity but limiting liquidity. The new model, with on-demand and fractionalized coretime NFTs, lowers barriers for projects, likely accelerating ecosystem expansion by enabling more diverse applications without long-term lockups. This could attract more developers, as seen with 7 million unique accounts and 39 million transactions in Q2 2024. However, the transition risks short-term price volatility if unlocked DOT floods the market. Long-term, the ecosystem’s growth speed may surge as Coretime fosters agility and innovation.
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