Subsocial Network, an open platform designed to support the creation of decentralized social networks and marketplaces, announced on November 11th that it will be participating in the upcoming Kusama parachain slot auction.
As per the announcement, Subsocial will bid for one of the competitive Kusama parachain slots to scale its ecosystem within the Dot and Kusama community. The project has since invited Kusama (KSM) token holders to participate in its crowdloan, where a total of 16.5 million (16.5% of the total supply) SUB tokens will be allocated as rewards.
Launched in June 2021, the Kusama parachain slot auction has been an enormous success, with Karura (a Polkadot-based DEX) winning the first auction. A total of eleven projects have since been awarded parachain slots through this initiative. Subsocial is looking to join this growing list, setting itself apart as the primary social network-building platform on Polkadot and Kusama.
At the core, Subsocial leverages Web 3.0 to introduce a decentralized social media and NFT marketplace. The platform’s infrastructure is built on Polkadot’s substrate blockchain framework and IPFS tech stacks to support decentralized file storage. As such, users can create decentralized and censorship-resistant social media platforms.
Following the parachain slot bid, Subsocial’s native token SUB stands to gain significantly if the project wins a slot. For starters, it is likely to be listed on popular DEXes within the Polkadot ecosystem, including Karura.
Additionally, crowdloan participants who receive SUB tokens can start using them to monetize Subsocial’s ecosystem opportunities. This native token allows Subsocial users to deploy their own censor-ship resistant chains and tip their favourite content creators, alongside supporting other in-built monetization options.
Subsocial’s Crowdloan Campaign
As mentioned, Subsocial has set aside 16.5 million SUB tokens to reward KSM token holders that will dedicate their tokens towards the crowdloan campaign. Out of these, 15 million SUB tokens will be allocated as participation rewards, while the remaining 1.5 million tokens will be allocated to a referral program and distributed as per the stipulated terms.
The crowdloan has a cap of 100,000 KSM which means that participants will get 150 SUB tokens per KSM if the cap is achieved. However, should Subsocial win the parachain slot with a lesser bid, the contributors will receive more than 150 SUB tokens per KSM. Assuming Subsocial wins with a 50,000 KSM bid, contributors will receive 300 SUB tokens per KSM.
Besides the SUB token rewards, contributors to this crowdloan can also earn referral bonuses. The contributors will be allocated unique referral codes, enabling them to generate 15 SUB for each KSM token contributed by their referrals; these rewards will be split on a 50/50 basis between the referrer and the referee.
Notably, 80% of SUB token rewards will be subjected to a vesting period of over 48 weeks as per the parachain slot lease. Meanwhile, the remaining 20% can be claimed upon receipt. The initial unlock of 20% of the SUB rewards is expected to go a long way in stimulating the use of Subsocial’s network and its capabilities.
While the parachain slot auction bid is a significant milestone, Subsocial has already distributed over 750,000 SUB tokens through the Dotsama token claim initiative. The project is set to hold the fourth Dotsama token claim round to hit the 1 million distribution target.