The Kusama parachain slot auction has entered the start-up stage. After the common good parachains are successfully deployed, the auction process will start. As the canary network of ChainX (PCX), SherpaX (KSX) will participate in the Kusama parachain Auction. Let’s review some important facts together below.
NOTE: This article is based on a 6-month lease slot period, 4 slots making 2 years. With Kusama likely having shorter lease periods, the numbers below will be changed accordingly once these are known.
KSX has an initial issuance of 21,000,000, with a maximum of 10% additional issuance each year, mainly reserved for future Kusama parachain auction incentives.
Given the auction is won and SherpaX is granted a parachain slot, the incentives are issued to the address that locked KSM during the auction period. All KSM locked during the auction will equally share the Auction Incentives of 5,000,000 KSX.
Bonus Incentives are distributed from the Bonus Incentives pool of 3,400,000 KSX as a percentage increase over the KSX granted from the Auction Incentives. The conditions for these are specified as follows:
- Activity bonus: Participate in the warm-up activities initiated by ChainX (such as the Twitter competitions). This bonus does not overlap with other bonus methods. The specific bonus ratio is based on each event;
- Invitation bonus: By inviting other users to participate in the auction and locking KSM to support SherpaX, the inviter and the invitee each receive an additional 5% of the invitee’s Auction Incentives. The invitation mechanism will be launched before the auction starts.
- Quantity bonus: According to the quantity of KSM locked during the auction, an additional Quantity Bonus can be obtained. These are shown in the table below:
Based on the preliminary questionnaire, research, and comprehensive consideration of the project, the decision was made to bid for a 2-year lease on the parachain slot.
NOTE: This article is based on a 6-month lease slot period, 4 slots making 2 years. With Kusama likely having shorter lease periods, the numbers will be changed accordingly once these are known.
PCX Airdrop: a one-time release after the parachain is online
Auction+Bonus Incentives: a one-time release after the parachain goes online
Normally, KSM locked during the auctions will remain locked for the entire lease period. This means it will be locked for half a year. For users who deem this undesirable, we’ve devised an alternative way of participating in the auction.
Instead of locking KSM in the auction directly, users can lock KSM with a trustee which will be responsible for the asset security of the escrow address. After the parachain slot auction is started, the address agent will lock this in the slot auction.
After the user locks KSM with the trustee, they will get XKSM 1:1 as a voucher. XKSM can freely circulate and be traded after SherpaX successfully wins the parachain slot and the parachain is online. After the KSM lock-up period expires, it can be exchanged for KSM 1:1. In this way, users can obtain KSX incentives without sacrificing KSM liquidity and participating in the parachain slot auction.
You are free to choose either solution. Directly locking during the auction, or locking with the trustee. There is no difference in incentives. The only difference is the ability to have XKSM available to circulate.
More details will be released gradually as the Parachain Slot auction advances.
ChainX, the first project in Polkadot’s ecosystem, is committed to the research and application of Bitcoin layer 2 expansion, digital asset gateway and will become Polkadot’s second-layer relay chain, to realize cross-chain asset exchange, leading Bitcoin Cross-DeFi.