The Kusama ecosystem is in full swing as potential projects continue to compete for auction sites.
According to Twitter user DonnieBigBags, around 2.4 million KSM – the network’s native token – are blocked in auctions, which is more than a quarter of the circulating supply.
Around 2.37 million $ KSM Tokens are now locked in auctions.
Almost a quarter of the total offer. It will only continue to dry out.
– Donnie (@DonnieBigBags) September 28, 2021
“Approximately 2.37 million KSM are now locked in auctions, or almost a quarter of the total offer. It will continue to exhaust itself. I currently know of 3 projects to buy KSM and I am vying for the remaining 2 auction places of this round. ”
In addition, more than 5 million KSMs are staked out and the total number of tokens blocked is around 7.4 million.
With only 8.47 million in circulation, tokens that are locked in auctions and staking now account for 87%.
In the event of a supply compression and a case of a negative supply shock, a bullish trigger for KSM is possible.
What is a parachain auction on Kusama?
Kusama, which calls itself Polkadot’s “Canarian Network”, is an experimental blockchain that provides an interoperable and scalable platform for developers to work on.
It is based on Substrate, a blockchain toolkit developed by Parity Technologies, and has the same code base as its brother Polkadot.
Kusama’s goal is to provide a test platform for their own blockchain innovation and implementation projects.
To this end, developers use Kusama’s Parachain architecture to bring their products to market. However, this depends on whether it is possible to rent out a position in the relay chain via an auction without permission.
Each auction lasts approximately a week, and the winners receive rental periods of up to 48 weeks, divided into eight periods of six weeks each.
There are 10 spaces available, with the auction for the last ending on October 6, 2021.
The process is democratised through crowdfunding. Projects can set up crowdfunding campaigns to increase their auction bids. Supporters help by keeping KSM on the selected project until the end of the rental agreement.
The rewards are usually distributed among the backers, but this is structured on a project basis, often in the form of tokens thrown in proportion to the amount of the KSM contribution.
Projekt won the 9th Parachain auction
The 9th auction is drawing to a close. Shortly before the editorial deadline, there are two brilliant candidates:
- The first is Heiko Finance – a DeFi protocol that provides credit, credit and staking services – with a bid of 196,834 KSM.
- Next up is Altair, which has more contributors but is temporarily behind with a lower total bid of 139,313 KSM. Altair’s use case is real asset encryption.
However, the end result was that Altair Network turned upside down and won. According to auction data from parachain, the network has amassed over $ 61.7 million in KSM from over 11,200 contributors, securing first place in the opening competition on Kusama.
More than 11,200 employees have engaged 187,835 KSM for the project. All committed funds will remain on hold for Altair’s term of office, which officially begins September 29 and runs through August 5, 2022.
The winner of this latest Parachain auction is intended to build a bridge between the pilot version of the Polkadot blockchain and Centrifuge.
According to data from Parachains.info, the Altair reward pool is currently 79.8 million AIR, 25% of which will be instantly unlocked and distributed to those who KSM promised in the Parachain auction. . For each KSM committed, users receive 430 AIR tokens. The remaining 75% will be released linearly by Altair during the 48-week parachain phase.
In addition to a decisive win for Altair, the recent Parachain auction is also evidence of the Kusama platform’s auction mechanism. The blockchain parachain position auctions follow a modified candlestick auction format, with each auction lasting approximately 1 week. To prevent last minute bids and change the bottom line, the exact end point of a particular auction remains unknown until it closes.
The source: Twitter
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