Kusama’s Parachain Slot Auctions Could Go Live on June 22, Kraken Announces Support

Key highlights: 

  • We could see the first Kusama parachain slot auction as soon as June 22
  • KSM holders will be able to bond their tokens to help their projects of choice win slots
  • The Kraken cryptocurrency exchange will let its users back parachain projects directly from the Kraken platform

The first Kusama parachain slot auction could go live already on June 22

Polkadot founder Gavin Wood has published a blog post in which he shared recommendations for the rollout of parachain slot auctions for Kusama. According to these recommendations, the first Kusama parachain slot auction would start on June 15, with four more auctions taking place every week from June 22 forward. 

Kusama is very similar to Polkadot, and is often referred to as Polkadot’s “canary network”. Compared to Polkadot, Kusama has looser governance parameters, allowing it to adopt new proposals much faster. Typically, new features are deployed to Kusama and tested before they make their way onto Polkadot. 

Both Kusama and Polkadot are built around the idea of “parachains”, which are customized blockchains that connect to the Kusama or Polkadot relay chain and leverage it for security. However, the amount of parachains that can be supported at any time is limited, so projects that are looking to launch their own parachain have to compete for a slot through auctions (excluding “common good” parachains which can be approved by the community without going through an auction). 

Currently, the only parachain operating on Kusama is Statemine, a parachain designed to support generic assets – these are basically the custom tokens that users of blockchains like Ethereum, Binance Smart Chain or TRON are already familiar with. Statemine was added as one of the common good parachains mentioned above. 

Supporters of projects that are vying for a parachain slot on Kusama can bond their KSM tokens to back the projects’ bids. If the project doesn’t win the auction, the users bonding their KSM can get their tokens back. Otherwise, the bonded KSM tokens are unlocked after the project’s parachain “lease” expires (leases last for at least 6 weeks, but they can go up to 48 weeks). It is expected that many projects who are competing for parachain slots will offer their own tokens as an incentive for users to back them with KSM. 

In line with the imminent launch of parachain slot auctions on Kusama, the Kraken cryptocurrency exchange has announced that its users will be able to take part in these auctions from the Kraken platform. The first two projects that Kraken users will be able to back are decentralized finance platform Karura and smart contracts layer Shiden.

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