The Kusama network has successfully concluded its sixth parachain slot auction and immediately initiated the seventh. This continuous process highlights the vibrant ecosystem and growing demand for blockchain interoperability and specialized functionality within the Kusama relay chain.
The Conclusion of the Sixth Auction
On September 8th, the sixth parachain slot auction on the Kusama network concluded. The winning project was KILT Protocol, which successfully secured its slot by locking 219,999.9 KSM tokens. Shortly after winning, at approximately 18:27, KILT was integrated into the Kusama relay chain and began producing blocks as a fully functional parachain.
This integration marks a significant milestone for KILT, enabling it to leverage Kusama's shared security and cross-chain messaging capabilities to further its goals of providing decentralized identity and verifiable credentials.
The Seventh Auction Begins
In a swift move following the sixth auction's conclusion, the Kusama Council passed Motion 350, officially initiating the network's seventh parachain slot auction. This demonstrates the seamless and automated nature of the governance and auction processes on Kusama.
The current frontrunner in the bidding for this new slot is Calamari Network, the canary network for Manta Network. Calamari has gathered significant community support, with 190,490 KSM committed to its crowdloan campaign. Other notable contenders include:
- Basilisk: 77,872 KSM
- Altair (Centrifuge's canary network): 47,125 KSM
- Heiko (Parallel's canary network): 35,762 KSM
These projects are competing for the right to lease a parachain slot for a duration of 48 weeks, connecting their blockchain to Kusama's core infrastructure.
Overview of the Kusama Parachain Ecosystem
As of now, the Kusama network supports seven active parachains:
- Statemine: A common-good parachain allocated via governance for issuing assets.
- Karura: The decentralized finance hub and canary network for Acala.
- Moonriver: A smart contract platform and companion to Moonbeam.
- Shiden: A multi-chain decentralized application layer on Kusama.
- Khala: The privacy-focused cloud computing network.
- Bifrost: A protocol providing liquidity for staked assets.
- KILT Protocol: A blockchain for issuing self-sovereign, verifiable credentials.
This diverse set of parachains showcases the wide range of use cases being built on Kusama, from DeFi and smart contracts to digital identity and privacy.
Economic Impact on the KSM Token
The crowdloan model for securing parachain slots has a substantial impact on the KSM token's economics. To date, all crowdloan activities—including both successful and ongoing campaigns—have locked approximately 1,749,000 KSM. This represents 15.25% of the total KSM supply.
When combined with the current staking ratio of 42%, the total percentage of KSM tokens locked in the network (for both staking and parachain slots) rises to 57.25%. This significant lock-up reduces the circulating supply, potentially influencing the token's market dynamics. For those looking to understand the mechanics of these auctions and their opportunities, 👉 explore more strategies for participating.
The Role of Canary Networks
Many projects participating in Kusama auctions are "canary networks" or pioneers for larger projects destined for the Polkadot network. Kusama acts as a proving ground, allowing teams to test their technology, economics, and community governance in a real-world environment with real value at stake before deploying on the more conservative Polkadot mainnet. This iterative process is crucial for enhancing security and functionality.
Frequently Asked Questions
What is a parachain slot auction?
A parachain slot auction is a candle auction where projects on Kusama or Polkadot bid to secure a slot to connect their blockchain as a parachain to the central relay chain. Projects typically gather bids through crowdloans, where token holders contribute their native tokens (KSM or DOT) to support their favorite project.
How long does a parachain slot lease last?
On the Kusama network, a parachain slot lease lasts for a period of 48 weeks. The duration is different on the Polkadot network, which uses a longer lease period to align with its more stable environment.
What happens to the KSM tokens contributed to a crowdloan?
The KSM tokens contributed by users to a successful crowdloan are locked for the entire duration of the parachain slot lease. They are returned to the contributors after the lease period ends. It's a way for users to support a project without spending their tokens, often in exchange for rewards from the project itself.
Can a project win multiple slot auctions?
Yes, a project can win consecutive slot auctions to extend its lease and maintain its status as a parachain. This requires ongoing community support and successful crowdloan campaigns for each new auction they enter.
What is the difference between Kusama and Polkadot?
Kusama is a canary network for Polkadot. It is faster, more experimental, and has lower barriers to entry for new projects and governance proposals. Polkadot is more stable and conservative, focusing on enterprise-grade reliability and security.
What if a project doesn't win an auction?
If a project does not win a parachain slot auction, the KSM tokens contributed to its crowdloan are automatically returned to the contributors. The project may then choose to wait for the next auction cycle, explore other ways to connect to the ecosystem (e.g., as a parathread), or build on a different platform.