The long-awaited Polkadot ecosystem parachain auctions have finally begun, with the Kusama parachain auctions being the first to open to the public.
On June 15, Kusama officially launched its five-round parachain slot auction. Successful bidding projects will gain access to a Kusama slot for 48 weeks (or one year). Current data indicates that Acala's sister network is likely to win the first Kusama slot.
As an IoT project within the Polkadot ecosystem, it is crucial for Robonomics to establish a presence on Kusama promptly. Therefore, Robonomics plans to participate in the third Kusama slot auction and aims to raise the required 1 million KSM from its community.
Robonomics Crowdloan Starts on June 28
The first round of the Kusama parachain slot auction began on June 15, 2021, with a new auction starting every seven days thereafter.
Polkadot enables parachains to raise the necessary funds for auctions through decentralized crowdloans. Once initiated, anyone can participate by initiating a special transaction with the campaign index. The tokens used for the crowdloan must be liquid and not locked due to staking, vesting, governance, or other reasons. All funds from the crowdloan are transferred to a dedicated account for the campaign.
Following the conclusion of the second parachain slot auction, the Robonomics auction module will go live to participate in the third round, aiming to secure the third slot. Users can participate in the Robonomics crowdloan starting June 29 until the project successfully wins the auction.
Users' KSM will be locked for the entire lease period once the Robonomics parachain is operational, expected to last 48 weeks. After the lease period ends, the KSM will be returned. During the leasing process, participants will receive rewards from Robonomics.
There are two reward options: the first is to receive 100% of the parachain's native token (XRT) after the Robonomics parachain goes live. The second option is to receive 25% of the reward in ERC-20 tokens immediately after a successful auction bid, with the remaining 75% in native tokens distributed after the parachain is operational (approximately 2-4 weeks later).
If the project does not win another auction after 48 weeks, the parachain will transition into a parathread. However, the developers have already prepared a strategy for future slot auctions. Additionally, Robonomics plans to integrate an algorithm into the protocol to automatically generate yield for KSM/DOT holders.
Step-by-Step Guide to Participating in the Robonomics Crowdloan
You can participate in the Robonomics crowdloan through its dedicated interface.
By default, Polkadot developers provide a native interface on the Substrate portal to track the progress of crowdloans.
Example: The crowdloan page as of June 11, 2021.
In early April, Robonomics simulated an auction using the crowdloan module on the Rococo testnet. You can review this post to familiarize yourself with the interface and process for community participation in Polkadot auctions.
Furthermore, the crowdloan module will soon be available on the official Robonomics website.
This is what the interface for participating in the crowdloan on the Robonomics website will look like after June 28.
👉 Explore advanced crowdloan participation strategies
Development Plan After the Auction
Upon becoming a parachain, Robonomics will activate the following functions:
- Transfer of XRT between accounts.
- Using XRT to send IoT device telemetry data and pay transaction fees.
- Establishment of a superuser (Sudo) function.
- Formation of a technical committee.
After the initial functions are launched, Robonomics will proceed with the following update schedule:
- Genesis State: Core Functions (Week 0) - Launch of the initial functions listed above.
- Update 0.1: Staking (Weeks 1-3) - Allows users to stake XRT with a 10% annual yield. For crowdloan participants, the staking annual yield will be 125%.
- Update 0.2: Treasury (Weeks 4-6) - Enables the transfer of a portion of DAO funds from Ethereum to the parachain.
- Update 0.3: RWS Token Launch (Weeks 7-8) - Introduces IoT management functionality, allowing for commission payments or monthly subscriptions.
- Update 0.4: Robot-as-a-Service (Weeks 9-10) - Facilitates automated control flow services and uses in-transaction payments for device deployment.
- Update 0.5: Robobank (Weeks 11-12) - For details, please refer to this article.
- Update 0.6: Sudo Removal (Weeks 13-14) - At this point, developers will no longer be able to influence network operations without the involvement of the technical committee.
- Ecosystem Integration Update (Before Year-End) - This update will focus on integration with other parachain projects to enhance the potential of IoT projects interested in Polkadot.
Frequently Asked Questions
What is a Kusama crowdloan?
A Kusama crowdloan is a decentralized fundraising method where users lock their KSM tokens to support a project's bid for a parachain slot on the Kusama network. In return, contributors receive rewards from the project.
How long are my KSM tokens locked for?
Your contributed KSM tokens will be locked for the entire parachain lease period, which is expected to be 48 weeks. After this period, your KSM will be returned to your wallet automatically.
What are the reward options for participants?
Participants can choose between two reward structures. Option one is to receive 100% of the rewards in the native XRT token after the parachain launches. Option two provides 25% of the reward in ERC-20 XRT immediately after a successful auction, with the remaining 75% in native XRT distributed 2-4 weeks after the parachain goes live.
What happens if Robonomics doesn't win a future auction after 48 weeks?
If the project does not secure another slot in a subsequent auction, the parachain will downgrade to a parathread. A parathread is a more flexible, pay-as-you-go model for connecting to the Kusama relay chain.
Is participating in the crowdloan safe?
The crowdloan mechanism is a native feature of the Kusama and Polkadot networks, designed with security in mind. Your KSM is sent to a dedicated, on-chain account for the crowdloan campaign, not to a private wallet. Always ensure you are using the official Robonomics or Polkadot.js portals to contribute.
Can I participate if my KSM is staked or bonded?
No. To participate, your KSM must be liquid and transferable. You cannot use KSM that is currently locked for staking, vesting, governance voting, or in any other bonded state. You must unbond or unlock your tokens before the contribution period begins.