Each Kusama Parachain auction lasted for seven days, beginning with the auction start date and ending with the bidding end date. The final five winners of these auctions were Karura, Moonriver, Shiden, Khala, and Bifrost. Each auction assigned a slot duration of up to 48 weeks, eight lease periods of six weeks each.
The auctions often happen through crowd loans. Before delving deeper into how many KSM tokens were locked during each of these auctions, we must understand how the crowd loan mechanism works.
The Crowd Loans Mechanism
As a team that wants to win an auction, you can choose to crowdfund your slot lease. The in-built crowd loaning mechanism of Kusama enables you to pull contributors who will agree to lock up their KSM tokens in exchange for a reward. What that reward would be is your prerogative. The funders must feel excited about the reward you have promised them.
The contributors can choose to lock their KSM tokens throughout the campaign duration or until the team wins the auction. It can be unlocked and returned to the contributor’s control at the end of the lease period. However, if the team does not manage to win the bid, contributors’ KSM can be unlocked at the end of the seven-day campaign.
The Total Volume of KSM Locked
A total of 33,787 crowd loan participants took part in crowd loaning all the five auctions combined. Let us have a look at each auction’s participant volume and the number of KSM tokens they locked.
- Karura won the first-ever parachain slot auction, garnering more than 500,000 KSM tokens as contributions in a community-backed crowd loan. In terms of exact numbers, the total KSM locked was 501,137.66, coming from nearly 20,000 contributors. Out of these 20,000, 14,164 were on-chain contributions. In terms of contribution channels, 86.8% came from non-custodial wallets and 13.2% via exchange.
- The Moonriver crowd loan comprised a total of 205,935.0111 tokens, received from 5,977 contributors.
- Shiden secured the third parachain slot on Kusama with 138,457.8629 KSM tokens from 4,611 contributors.
- The fourth one to win the auction was Khala Network, with 132,280.7456 KSM tokens, from 2,759 contributors.
- The final one to win a slot was Bifrost, with 136,817.7951 tokens from 938 contributors.
According to the latest compiled figure, the total fund collected amounted to more than a million KSM tokens, 1,323,636.67 to be exact.
At the time of writing this article, the price of the KSM token is hovering around the mark of $175. However, the token recorded its all-time high on May 18th, 2021, at $621.71. It gives us an idea of how much worth the locked tokens can fetch.
The Importance of the Locked Funds
Kusama is a scalable network of specialized blockchains built using Polkadot/Substrate. Its codebase is nearly the same as that of Polkadot. It works as an intermittent testing or pre-launching ground for development teams wanting to innovate in a fast-moving environment or preparing to deploy on Polkadot.
These locked tokens, as an expression of the thriving community support, stand testimony to the innovative qualities of Polkadot and Kusama.
The reason why these leading projects are bidding for a slot on Kusama is its high scalability, transactional stability, and unmatched interoperability.
Such a high volume of raised funds on the platform would only help the Polkadot platform in its developmental efforts to become a viable alternative to the Ethereum network. Polkadot and Kusama thrive on a multi-chain ecosystem of interconnected parachains. The auction helps pull in the best of the projects to that ecosystem.
The community has supported Polkadot/Kusama for the variety of features they bring to the table. User-driven network governance, ease of development are a few among them. Millions of dollars in funds locked for 48 weeks also help augment the leadership position of DOT and KSM tokens. It will help gain traction, increase the trading volume and enhance the liquidity of these tokens and their parent platforms. It would give Polkadot a massive boost in challenging the dominance of Ethereum.