By
Steve Muchoki
April 17th, 2024
Polkadot founder, Gavin Wood, announces the auction of Parachain on Kusama network. Auction to last for five weeks and provide a chance to test and experiment with technological features before the deployment of Polkadot.
Ethereum co-founder and Polkadot founder Gavin Wood has stated that the Kusama ecosystem is in shape to host an auction of Parachain. In a blog post released on Tuesday, June 9, 2021, Gavin mapped out a schedule for the rollout and gave several recommendations on how the Parachain slot auctions could be rolled out in the coming weeks on the Kusama network.
According to him, the first bidding set for the Kusama Parachain Slot should hold by 8.am. ET on 15, June 2021. This date will need to be approved by the Kusama council. This is because the council along with other summoned KSM stakeholders make the final decision about what happens on the Kusama network. This includes when the Parachain Slot Auctions will take place.
If the date is approved, winners from the auction of the Parachain will be announced on June 22. This means that each auction will last for seven days. The entire auctions will last for 5 weeks. The auction is not a cheap affair. At the current market price, the auction will require DOT tokens worth 1 million (equivalent to $20 million as at the time of writing.
Implications of the Parachain Auctions
What this issued statement translates to is that projects will bid for a slot to build on the Kusama network. By using the platform’s inbuilt crowd loan option, projects will use crowdfunding to secure a slot. It will require individuals involved in the project to lock away their KSM, Kusama’s native token for a pre-specified period. During this lease period, the individual contributors will earn rewards.
What Makes the Auction Newsworthy?
As a result of the increased acceptance of decentralized finance and non-fungible tokens, Ethereum has become full and pricey. This created a gap; a need to create trusted options. The result is the rise of Cosmos, Polkadot, Solana and many other projects forcefully making their way into the base layer.
Polkadot and Kusama both have the same structural architecture featuring similar codes and features although the networks stand alone. Kusama functions as a testing ground for experimenting with various technological features before their official release.
Once the Parachain auction is successful on the Kusama network, one can expect that Polkadot will be deployed safely without many surprises.