On Tuesday, the Kusama Council approved by consensus the auction of spaces for parachains on the network, giving the green light to the new way of making blockchains on the powerful and innovative Polkadot network.
Auctions on the net Kusama de Polkadot officially began on June 15. The Council of the network approved Recently, with 13 out of 19 votes in favor, the first auction of spaces for Kusama parachains began, leading protocol developers to compete healthily to earn a construction space within this blockchain.
Initially, Gavin Good, co-founder of Polkadot, announced that auctions for parachain slots would begin on June 15, subject to approval by the Kusama Council. Now, with the consent of the network's governance, and following the schedule proposed by Good, the first auction of slots that began yesterday will end on June 22 and will give the winner a space within Kusama to build and deploy their parachain until May 13, 2022. Projects have the option to choose the duration of their parachain slot, ranging from 6 to 24 months.
In total, Kusama will auction off 5 parachain slots consecutively in this first round. Each auction will last for 1 full week and will start 1 hour after the previous one has ended. At the close of the round, the developers will evaluate the performance and operation of the network and the parachains and announce a new round of auctioning for network slots.
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Parachains, custom chains for every need
Kusama is Polkadot’s testnet, designed to allow developers to build new implementations and projects and test them before they hit the mainnet. The chain offers a fast, low-barrier environment that allows developers to iterate much more quickly on a next-generation multi-chain network.
The slot auction opens up the opportunity for protocols and projects to create their own custom blockchains, known as parachains, within this network.
The new generation of blockchains starting on Kusama allows developers to focus on efficient and precise solutions for each need, leaving behind blockchains that do everything. With Polkadot parachains, starting on Kusama, users will be able to enjoy highly scalable, secure, efficient and interoperable chains, which will build Polkadot’s complex and interconnected multi-chain ecosystem to give rise to a complete and truly decentralized web where users are in control.
Companies and protocols at Kusama auctions
The protocol karura of the Acala Foundation, which aims to be the “all-in-one DeFi hub” for Kusama and Polkadot, announced that it will participate in Kusama’s space auctions. In fact, Karura reported that in its crowdfunding program the community had contributed more than 200.000 KSM tokens, valued at more than $100 million, to bid for a space on the network.
In total, at the time of this edition, the protocol DeFi Has got 385.820 KSM tokens of 12.522 contributors. The tokens are valued at over $150 million, based on the current KSM price of $392 per unit.
Another protocol that went to the community to raise funds for Kusama auctions was Composable Finance, which allowed users to deposit ETH or other tokens ERC-20 into a vault to be used in a yield farming strategy. This way, he could return the funds to users and use the profits to purchase KSM tokens.
The company Stake Technologies, developer of Plasm Network and Shiden Network, raised $10 million in a funding round in which companies such as Gumi Cryptos, IOSG Ventures, Digital Strategies, Hypersphere Ventures, among others participated. Fenbushi Capital led the funding round for Stake Technologies.
Parallel Finance She will also participate in Kusama's auctions of spaces, raising $2 million to do so.
KSM and DOT Price
Although parachains are one of the most anticipated events by the Polkadot and Kusama crypto community, the price of KSM, the native token of the testnet, has not changed significantly since the approval of parachain space auctions by the Council.
On the contrary, DOT, the cryptocurrency of the Polkadot network, if it reflects an increase of more than 15% in the last hours, going from a value of 21,2 dollars to $24,5 in the last few hours. However, part of this growth is also related to the inclusion of DOT to one of the exchanges largest in the industry.
It is worth remembering that winning protocols in parachain auctions will lock their tokens for the duration of their deployment on the network. This will reduce the circulating supply of the token, whether they use KSM or DOT to win the space, which in turn could cause a positive effect on its value in the future.
Continue reading: Karura community contributes more than $100 million for auctions in Kusama
