Polkadot could introduce ‘common good’ parachains with DOT-based smart contracts

As Polkadot (DOT) gets ready to launch parachain auctions, a combined fundraising and market interest discovery mechanism, the team is realizing that some core features may be ill-suited for the auction mechanism.

Polkadot parachains are somewhat analogous to the sharding proposal for 2.0. Each parachain is a largely independent blockchain built for a particular purpose. Many projects building on Polkadot, like Moonbeam, Equilibrium or Acala, are developing their own parachains where the project’s tokens would act as a native currency used to pay for transactions. The parachains are able to communicate with each other through the Relay Chain, a central coordinator where Polkadot’s staking-based consensus mechanism is executed.