Crowdloan refers to the process of raising funds for new projects through $DOT or $KSM tokens within the Polkadot and Kusama network. Being a part of the substrate framework for Polkadot, crowdloans can be achieved by securing a spot in the parachain auction to generate $DOT.

Prior to the parachain slot auction, each crowdloan has a dedicated timeline. During this time, teams borrow $DOT from the members for auction. Instead of straight out handing the $DOT, teams acquire the relay chain of the project. Overall, crowloans are a revolutionary concept for Initial Coin Offerings.