Kusama Took Advantage of Polkadot To Start a Wave of Wealth Creation
Kusama’s first parachain auction will take place on June 15, 2021, and all KSM token holders will be able to participate. To release card slots, Kusama holds an auction. Most parachain teams will choose to crowdfund their card slot leases using Kusama’s built-in crowd loan mechanism (Crowdloan) to use their own KSM support Parachain, thereby obtaining the token reward the parachain.
Polkadot must be mentioned when discussing Kusama. Polkadot’s history begins with Ethereum, specifically with its founder, Gavin Wood. He is not only the founder of Polkadot, but also one of the co-founders of Ethereum. Polkadot is a cryptocurrency project that contributes to the Internet’s decentralized future (Web 3.0). Polkadot can achieve interoperability with blockchains other than cryptocurrencies and create smart contracts and new blockchains, allowing for cross-chain blockchains. According to Kusama, Polkadot’s “pre-test network,” whether or not the card slot auction is successful is related to whether or not Polkadot and Polkadot’s ecology can enter an entire development period. As a result, Kusama’s focus is as intense as that of last year’s Polkadot masters. The internet’s launch.
Kusama’s parachain auction has just finished the 11th card slot auction. Each Kusama auction lasts seven days and is divided into two parts: a two-day start period and a five-day candle period. So, what do you need to know as a KSM token holder? BigONE will provide you with answers to these questions. In addition, BigONE has answered some questions about the Kusama card slot auction so that everyone can understand the full picture of the card slot auction and how to participate in it more intuitively.
The origin of the card slot auction mechanism?
Polkadot is essentially a scalable heterogeneous multi-chain blockchain consisting of a collaborative, decentralized blockchain network, also known as a relay chain. The relay chain communicates with the parallel parachains. These parachains can be thought of as the relay chain’s clients. The relay chain’s purpose is to ensure the smooth operation of the parachain.
Polkadot enables multiple dedicated blockchains to communicate in a secure environment, allowing the blockchain to scale. The parallel chain is linked to the relay chain, which necessitates using a similar chain card slot. Only by acquiring a card slot can it truly become a “Polkadot parachain” because it can provide the security shared by Polkadot and cross-chain interoperability, on-chain governance, no-fork on-chain upgrades, scalability, and standard procedures. Fees and other benefits, However, the number of parachains that a relay chain can carry is limited, and the parachain slot becomes a scarce resource as a result. According to theoretical calculations, approximately 100 parachain slots will be available on Kusama, so many projects are interested. To gain access to Polkadot, there will naturally be an uneven distribution. The most appropriate solution for allocating the card slots fairly is bidding, which is how the parachain card slot bidding mechanism came to be.
What are the benefits of card slot auctions for the development of Polkadot’s ecology?
To begin with, the card slot auction can screen out those relatively high-quality projects through a higher entry threshold because participating in the card slot auction is more expensive, and not all projects can meet the requirements so that you can select the comparison to some extent. Of course, not all Polkadot ecological projects are consistent with its ecological development and require a card slot but are only appealing to those projects that want to become parachains.
Second, the card slot auction has the potential to revitalize the Polkadot ecosystem. When well-known projects participate in the card slot auction, they will bring their own heat and users into the Polkadot ecosystem, whether from attention or funding level. Bring a lot of people.
Finally, for Polkadot’s development, the card slot auction is the start of Polkadot truly ushering in the “cross-chain era,” as well as an exam to test its development over the last few years. As a result, if the past Polkadot remained theoretical, the official start of the slot auction is the real beginning of a historical moment that deserves our attention.
Which method does the card slot auction take?
Candle auctions are used in both the Kusama card slot auction and the Polkadot card slot auction. From the 17th to the 18th centuries, candle auction law was widely used in parts of England to sell goods and lease rights. Light a candle at the start of the auction; when the candle burns out, the auction hammer falls, and the auction ends. A public auction is a type of candle auction. Bids submitted by bidders are becoming increasingly high. The bidder with the highest bid at the end of a randomly determined auction time will be considered the winner. Candle auctions have been improved by the Polkadot and Kusama Parachain card slot auction rules.
Its rules are based on the “2+5” two-stage auction method. The first two days are standard auctions, in which the higher the bid, the more dominant, but after these two days, it enters an indefinite “Ending period.” The end period will last five days, but the system will continue to work. During these five days, a random block height will be chosen as the real auction end time. In other words, even if you pay a higher price after the end of the block height, the person with the highest bid at the end will win, even if their bid is lower than yours. So, for example, if the system randomly ends at the 10000th block height, A’s bid at the 9999th block height is the highest 100 DOT previously, and B’s bid at the 10001st block height is the highest 200 DOT previously, then A is still the successful bidder.
Kusama Parachain card slot auctions are held on the blockchain and are essentially decentralized; once the auction begins, all participating data is publicly accessible and traceable on the chain. Furthermore, if the auction participant wins, he does not need permission to deploy his parachain, and the non-winner of the card slot auction can participate in the next round of the card slot auction.
What is the crowd-loan in the Kusama card slot auction?
Because anyone can participate in the card slot auction, you must pay special attention to two factors if you want to win the parachain card slot auction: the number of tokens participating in the auction and the timeliness of the auction’s card slot usage.
Not all project participants have enough KSM to bid in the auction. Many project parties will give up their own KSM wallets to participate in the auction and use Crowd-loan funds better to implement the blockchain spirit of community building ecology. We frequently hear about the card slot auction crowd loan. Crowd-lending is the only way for a new project to become a parachain, and the project must be connected to the Kusama network as a parachain. Crowdlending is a pledge reward mechanism rather than a literal “loan.” By staking KSM, users can obtain Token rewards for parachain projects. The KSM pledged by users is typically used to pay the rent of the parachain card slot. During the rental period, users can receive the parachain native token rewards as a reward. The KSM pledged by users will be returned in full at the end of the parachain lease.
Teams seeking Kusama Parachain Card Slots conduct a market-wide decentralized and undifferentiated PLO. The abbreviation for Parachain Lease Offerings is PLO. In a nutshell, it is to lend your DOT to those who wish to bid on the Parachain Card Slot auction. The project party, and then you will receive the project party’s native Token. Polkadot founder Gavin Wood refers to it as a Crowd-loan (crowd-loan) method, which is similar to Crowd-funding (crowd-funding) in that the funds raised are used to achieve something. The project party spends the extra KSM on a parachain card slot auction. If the bid is successful, the KSM in the PLO will be locked for the duration of the parachain card slot lease period, and the PLO initiator will issue the original ecological project to the crowd loan investors. As a reward, a token. KSM will be returned to investors at the end of the lease periodgenuinelyIn addition, oftheir. On the other hand, crowdfunding is locked into a smart contract and lent to the project party. It will not lose its principal but will receive the project party’s Token as a reward fund, killing two birds with one stone.
How do ordinary users participate in the Kusama Parachain card slot auction?
You can lock KSM on Kusama and lend the locked KSM to the project party who wants to bid on the parachain card slot if you are a senior user of the currency circle and familiar with the various operations of the wallet. The project party will hand over some native tokens to the user. Other incentive strategies persuade users to lend themselves KSM. It should be noted that participation in PLO does not guarantee the project party’s Token reward; it is dependent on whether the project party successfully bid for the card slot. Suppose the project party successfully bids for the parachain card slot when the user participates in the PLO KSM. In that case, this part of the KSM will be locked in the smart contract, and the lockup period is the card slot rental time selected by the project party, which also means This portion of KSM will not incur losses, but it will lose liquidity during the lease period.
Is it safe to take part in the KSM auction lockup? How long does it have to be redeemed?
The KSM that takes part in the auction lock is secure. The KSM that the user has locked is not transferred to the project party but is instead locked in the relay chain’s smart contract. As a result, BigONE needs to remind everyone that 99.99 percent of project parties who ask you to transfer KSM directly are scammers.
The KSM involved in the auction lockup will be locked on the Kusama relay chain, but ownership will remain with the individual. If your bid is successful, these KSMs will be redeemed after the expiration of the card slot rental period that the project team bids on. If the bidding fails, they will be returned once the bidding is completed.
What additional benefits can investors get from participating in the card slot auction?
Aside from the Token rewards obtained by participating in the card slot auction PLO crowd loan, some project parties have also set up numerous incentive mechanisms to encourage more people to participate. For example, after . Still, itcompleting the first and second rounds of Kusama auctions, the Kusama network will first suspend the auctions and monitor the network’s overall performance. So far, twelve teams have won the card slot auctions, which are listed in the order of successful auctions. Kintsugi, Statemine, Karura, Moonriver, Shiden, Khala, Bifrost, KILT, Calamari, Basilisk, Altair, and Heiko Finance are in order. Because of the success of the card slot auction, the Tokens of these projects have also risen with the tide, with the Token prices of some high-quality projects increasing by more than a hundred times. Profitability is one of the primary reasons why Polkadot parallel chain card slot auctions are so popular.
As an example, consider Moonriver. It is the winner of the second round of card slot auctions and a parachain deployed on Kusama. Moonriver is committed to providing compatibility with the existing Ethereum developer toolchain and network, and with its token MOVR, it aims to become a supporting network of Moonbeam. MOVR is a token obtained by investors who take part in the PLO card slot auction crowd loan. When Moon River won the card slot auction, the weekly increase in the MOVR currency price exceeded 2384.19 percent, a more than 200-fold increase. This one-hundred-fold income is what investors can get from participating in the card slot auction, and it is a significant additional income.
Participating in the card slot auction necessitates a DOT pledge, resulting in a lack of liquidity. A product to be launched by the BigONE cryptocurrency exchange can ideally release its liquidity. Therefore, more parachain card slot auctions are supported by BigONE. Users who participate in the product will release more liquidity through its DOT and BDOT 1:1 exchange mechanism, providing additional benefits to PLO users. This process can be summarized as the bank mortgages the assets, and the bank lends the funds in the form of mortgage loans, allowing the assets’ liquidity to be released.
There are many unanswered details about the Kusama card slot auction. If the answers to the preceding questions do not satisfy you, you can post your queries and exchanges on the BigONE cryptocurrency exchange’s official community. In addition, there will be how-to articles on how to bid in the BigONE Polkadot auction. And in the video, if it is a common question for everyone, we will collect these questions and answer them all at once, so stay tuned.
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