Kusama's next round of parachain slot auctions is set to begin on September 1st. This batch will feature five slots, and numerous projects are preparing to compete. Below, we explore the potential participants and their crowdloan strategies.
Understanding Parachain Slot Auctions
Parachain slot auctions are a core feature of the Kusama and Polkadot networks. They allow projects to secure a slot to run their own blockchain in parallel with the main relay chain. Projects typically raise funds through crowdloans, where users lock their KSM tokens to support their favorite project in exchange for rewards.
👉 Explore more about crowdloan participation
Projects Competing in the Second Kusama Auction
SherpaX by ChainX
SherpaX is the canary network of ChainX, one of the earliest projects in the Polkadot ecosystem. It focuses on Bitcoin Layer 2 expansion, digital asset gateways, and secondary relay chain development.
Crowdloan Plan:
- Reward: 10 KSX per 1 KSM locked.
- Bonus: Tiered rewards based on amount, 5% extra for referrals.
- Additional: 5 extra KSX per KSM and a limited-edition CID NFT.
- Distribution: No lock-up period; rewards released upon chain launch.
Darwinia Crab Network
Crab Network is Darwinia's canary network, positioning itself as the first cross-chain NFT chain in the ecosystem.
Crowdloan Plan:
- Planning to bid for a 48-week slot.
- Rewards: 240 million CRING and 6 million RING distributed proportionally.
- Release: 30% unlocked immediately, 70% vested linearly over 48 weeks.
- Extra: NFT mining packages and a Bitcoin grand prize.
Altair by Centrifuge
Altair enables real-world asset tokenization, allowing users to use assets as collateral for financing via Tinlake.
Crowdloan Plan:
- AIR tokens distributed 1:1 to CFG holders based on a genesis snapshot.
- Reward: 50+ AIR per 1 KSM locked (final amount depends on total participation).
- Release: 25% upfront, the rest vested over the lease period.
Crust Shadow
Crust Shadow is the canary network for Crust, a decentralized cloud storage platform supporting IPFS and other protocols.
Crowdloan Plan:
- Base Reward: 0.07 CRU + 14 CSM per KSM, even if the bid fails.
- Success Bonus: 1.5 CRU + 300 CSM per KSM (if total KSM ≤ 50,000), or a share of a fixed pool.
- Release: 30% immediately, then 10% per lease period.
KILT Protocol
KILT is a protocol for creating self-sovereign, verifiable credentials and decentralized trust markets using zero-knowledge proofs.
Kintsugi by Interlay
Kintsugi is building a bridge to bring Bitcoin to Kusama, enhancing liquidity in the ecosystem. Its detailed crowdloan plan is expected within a week.
Kapocha by Edgeware
Kapocha is the canary network for Edgeware, a smart contract platform with a community-managed treasury and decentralized governance system.
Calamari by Manta Network
Calamari is the privacy-focused canary network for Manta, aiming to provide privacy-preserving DeFi services like private payments and AMM trading.
Crowdloan Plan:
- Reward: 10,000 KMA per 1 KSM locked.
- Bonus: 10% extra for top 500 contributors; 5% for next 500.
- Lease Period: Bidding for a 48-week slot.
Sakura by Clover Finance
Sakura is the canary network for Clover, a Substrate-based platform aiming to reduce development barriers and costs.
Crowdloan Plan:
- Reward: At least 200 SKU per 1 KSM locked.
- Total Rewards: 200 million SKU (20% of total supply).
- Lease Period: Targeting a 48-week slot.
Basilisk by HydraDX
Basilisk is a cross-chain liquidity protocol for nascent crypto assets, working alongside HydraDX.
Crowdloan Plan:
- Reward: 15 billion BSX (15% of total supply) allocated to contributors.
- Lease Period: Bidding for a 48-week slot.
Robonomics
Robonomics is an IoT platform that allows devices to connect to the Kusama and Polkadot ecosystems, creating digital twins for physical objects.
Genshiro by Equilibrium
Genshiro is a canary network offering a full-service, cross-chain DeFi platform on Kusama with lower risk.
Crowdloan Plan:
- Reward: 1000 GENS per 1 KSM locked.
- Total Rewards: 240 million GENS (20% of supply).
- Bonus: Up to 50% allocation bonus and 20% early bird reward.
Loom Network
Loom is a multi-chain ecosystem that allows developers to build DApps that work across major blockchains, now expanding to Kusama.
Crowdloan Plan:
- Reward: 100 LOOM per 1 KSM locked.
- Total Rewards: 24% of total supply (12 million LOOM).
- Release: Full rewards distributed immediately upon a successful bid.
Kpron by Apron Network
Kpron is the testnet for Apron, a decentralized infrastructure service network supporting multiple blockchains.
Crowdloan Plan:
- Tiered Rewards: 80 KPN per KSM for first 20,000 KSM; 40 for next 30,000; 10 for next 50,000.
- Release: 35% upon success, 35% after one month, 30% after two months.
PolkaSmith by PolkaFoundry
PolkaSmith is a canary network serving as a production hub for DeFi and NFT DApps on Kusama.
Crowdloan Plan:
- Reward: 350+ PKS per 1 KSM locked.
- Total Rewards: 10.5 million PKS (15% of supply).
- Release: 35% at launch, the remainder vested linearly over 10 months.
SORA Network
SORA is a decentralized economic system and network with built-in DeFi tools, aiming to connect to the Polkadot ecosystem.
Parallel Heiko
Heiko Finance is the canary network for Parallel Finance, a decentralized money market protocol for lending, staking, and borrowing.
Crowdloan Plan:
- Reward: 5% of total HKO supply allocated to crowdloan.
- Bonus: 5% extra reward for referrals.
Frequently Asked Questions
What is a Kusama parachain slot auction?
A parachain slot auction is a mechanism where projects compete to secure a slot on the Kusama relay chain. This allows them to operate their own sovereign blockchain while benefiting from the shared security and interoperability of the Kusama network.
How can I participate in a crowdloan?
To participate, you lock your KSM tokens to support a project's bid for a parachain slot. If the project wins, your KSM is locked for the duration of the lease period, and you receive the project's native tokens as a reward. You can typically do this through the project's website or a dedicated crowdloan platform.
What happens to my locked KSM if a project loses the auction?
If the project you support does not win a slot, your locked KSM will be returned to you unlocked and without any penalties after the auction concludes.
Are there risks involved in participating in crowdloans?
The primary risk is the opportunity cost of locking your KSM for the lease period (up to 48 weeks), during which you cannot trade or stake it. There is also the inherent risk associated with the value of the reward tokens you receive from the project.
What is the difference between Kusama and Polkadot auctions?
Kusama is Polkadot's "canary network," a faster-paced, experimental environment. Its auctions often feature canary networks of major Polkadot projects. Slot leases on Kusama are shorter and generally less expensive than on the more stable and conservative Polkadot network.
Can I contribute to multiple crowdloans simultaneously?
Yes, you can split your KSM holdings and contribute to multiple project crowdloans at the same time. However, your tokens will be locked for each respective auction's duration.
Disclaimer: This article is for informational purposes only, providing a summary of projects that may participate in the upcoming auctions. It is not financial or investment advice. Always conduct your own research (DYOR) before committing funds to any project.