Clients looking to support their favorite Kusama projects can now, for the first time, participate in Parachain Slot Auctions (or ‘Parachain Auctions’ for short) directly from the Kraken platform.
Key points to note:
1. Parachain auctions are not available to residents of the US, Canada, Japan and Australia.
2. Only verified Intermediate accounts and higher are eligible to participate in the Parachain Auctions. Get verified now.
3. Parachain Auctions are an entirely new mechanism for supporting projects. It is important that you understand how they work before participating.
4. The focus of this post and our offering is on the Kusama Parachain Auctions (Polkadot auctions are set to happen later in 2021).
What are Parachains?
Parachains are custom blockchains that are integrated within the Kusama network. They can be customized for any number of use cases and feed into the main blockchain and heart of its network, called the Relay Chain, thus benefiting from Kusama’s network security.
Importantly, only 100 parachain slots are expected to be available, a number that is flexible and subject to change by governance vote over time. To claim one of these slots, the parachain projects have to win a parachain slot auction.
For Kusama auctions, the project with the most KSM bonded to support its bid, at the time the auction snapshot is taken, will generally be able to claim the auctioned parachain slot. Projects may, in their discretion, give rewards to contributors who support their winning bid.
If the auction is lost, the KSM bonded by contributors may be re-claimed at the end of that project’s specified campaign duration, which may last for one or more auctions.
For more detailed information on Parachain Auctions, check out our “Parachain Auctions Explained” page.
In the first ever parachain auction, Kraken will allow clients to support the bids of at least two projects, starting with Karura and Shiden, with potentially more on the way for…