Kusama network will start its next five parachain auctions

Kusama is a platform that serves as a test environment or so-called “canary network” for developers to experiment and determine their efficiency before the blockchain code and applications are officially released to the Polkadot network.

Due to the trial-and-error nature of Kusama, developers can benefit from a less stringent governance framework and lower staking requirements than they experience on Polkadot.

Following the successful debut of its parachain auction As early as June of this year, the Kusama committee will conduct another five auctions in the coming weeks.

Parachain auctions on Kusama use a rare historical auction analysis method called the candle method, where users will bid within a fixed allocated auction time and use their Kusama (KSM) tokens for their favorite projects. The winner of the auction is the project that receives the largest amount of funds.

In modern times, retail consumers will become familiar with this hourglass method through its application in the bidding process on the e-commerce platform eBay.

However, this method also has drawbacks. Most notably, preemptive transactions and last-minute bidding wars that encourage internal knowledge features can distort the data set because every bidder knows when the time runs out.

With the addition of blockchain technology, case For candle auctions-as mentioned in this year’s Web3 Foundation research-there are two aspects: “The existence of smart contracts between preemptive transactions and bidders.”

Although the bidding participants know the time of the start block and the end block, they do not know the time of the key termination block with a five-day end period. This ensures that no participant can predict when the auction will end, thereby providing an equal opportunity for each project to obtain value.

The first new round of Parachain Slots auction will begin on September 1, the sixth auction. The initial auction period will last two days, followed by a five-day end period. In total, five auctions will be conducted in five weeks, and a suspension will be arranged to evaluate network performance.

The auction time is scheduled for 12:00 PM on September 1, 8, 15, 22, and 29 GMT.

In the first round of parachain auctions between June 15 and July 20, 18 independent teams have registered to participate in crowdfunding activities, received funds from nearly 20,000 unique accounts, and contributed more than 1.3 million KSM (approximately 450 million U.S. dollars).

Crowdloaning is a mechanism designed to promote cross-parachain decentralization by distributing tokens to users in exchange for their pledged assets. This method is similar to the liquidity mining on Ethereum. Participants can get token grants from their favorite decentralized financial projects.

If the crowdfunding campaign is successful, the parachain will be added to the relay chain, and the collective token will be locked in the parachain’s account during the entire active period of the parachain.

In the first five auctions, most of the time period was purchased at high prices, which is a positive sign of decentralization and sharing the value of a single project.

The cryptocurrency exchange Kraken announced its support Part of the parachain auction that allows customers to pledge Kusama’s KSM tokens on its platform.

Among the participating teams, the decentralized trading platform Karura topped the list. register The initial total value locked is more than 500,000 KSM and is valued at 90 million USD at the time of writing.The platform subsequently advanced to emission On Polkadot and Kusama next month. Other notable auction successes are Moonriver and Shiden, which won over 205,000 KSM and 138,000 KSM, respectively.

Crowdfunding contributions for three major projects every day. source: polka dot