KR1 generates income from the Kusama network

By May 4, 2021Bitcoin Business
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KR1 (AQSE: KR1 CONSEQUENCES) has started generating income from staking activities in the Kusama Network (“Kusama”), a “Canarian” network with incentives for the Polkadot Blockchain Project.

“Staking” means holding a digital currency in a wallet for a fixed amount of time to aid in the security and operation of a blockchain network in which you will receive rewards for “using”.

Kusama, a portfolio holding obtained at zero cost under the Polkadot (“DOT”) position of KR1, is designed to test technical upgrades for Polkadot in combat and to enable aspiring Polkadot skydivers to deploy their systems prior to deployment Test polkadot.

“However, Kusama will potentially be home to a number of blockchain projects of lesser value that do not require polkadot’s ‘stability’ and far superior security guarantees. Kusama could therefore become an important stand-alone platform with a thriving economy over time.” said KR1.

The Kusama blockchain was introduced in early 2019 and switched to a decentralized “proof-of-stake” network in November 2019. Since then, KR1’s investment activities have continuously generated income in Kusama’s native “KSM” digital assets.

To date, KR1 has generated a total of 3,258.70 KSM from stakeout activities that the group said were not realized in fiat currency, but “pieced together” by staking out. KR1 holds a total of 40,270.10 KSM of Kusama tokens that are actively used.

KR1 also explained to investors that Kusama is a “proof-of-stake” network that, unlike “proof-of-work” networks like Bitcoin, does not require enormous computing power and energy consumption in order to maintain security and censor resistance ensure the network.

Instead, holders of KSM tokens can use their KSM as a “security deposit” to participate in block creation, network maintenance and securing of connected Kusama parachutes. The income from these activities is known as “stake returns”.

Given the “high tolerance for technical changes to the Kusama network and the potentially rapidly changing network conditions,” KR1 emphasized that it currently cannot provide any useful estimates of how many KSMs are continuously being generated.

“It is extraordinary to see the ways in which new crypto networks are launched that are continuously innovated with new token distribution methods that can add great value,” said George McDonaugh, managing director and co-founder of KR1.

He added, “Kusama, which currently has a fully diluted network valuation of $ 350 million, is an incredible addition to our portfolio and our investment activities. With Kusama as an experimental “Canarian” network for Polkadot, we can also benefit from the various activities that are piloted and gain experience. “

KR1 said its stakeout activities do not incur any overheads or additional operating costs. The company added that it holds and will continue to hold a significant proportion of its KSM holdings in a trusted and secure third-party provider for use.

KR1 shares traded strongly last month, opening 3.25% higher at 15.25p this morning following the announcement.

KR1 price chart

Reasons to Follow KR1

Leading Edge IP

KR1 is Europe’s leading digital asset investment firm supporting early-stage blockchain and DeFi projects. It is a first-time investor in many major blockchain and DeFi projects that support the decentralized platforms and protocols that make up the emerging Web3 infrastructure.

Generate material income

KR1 announced back in August 2020 that it had begun generating substantial income from equity activities in the Polkadot network, the largest investment and portfolio holding to date.

The company activated Polkadot to continue generating revenue after migrating to a blockchain network with proof-of-stake in June 2020.

To date, KR1 has a total of 3,558,490.89 Polkadot DOT tokens according to the nominal value designation. This differs from the original DOT assignment due to the bonus pool of unlisted digital tokens assigned under KR1’s 2017 bonus program that included Polkadot as an asset.

George McDonaugh, managing director and co-founder of KR1, described the launch of Polkadot as “a momentous event” in the group’s history that shareholders have been waiting for since KR1 backed the project in an early funding round in 2017.

Commenting on the group’s largest investing activities, McDonaugh said, “We are pleased to have made a profit at good prices, and we are pleased that Polkadot continues to expand the company’s equity activities as a high-yielding asset.”

Positive outlook

McDonaugh also said that KR1 is seeing keen interest in numerous new projects on Polkadot, many of which have already been endorsed or are currently in active discussion.

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