Crust Updates Kusama Parachain Slot Auction Rewards

Crust Network
CrustNetwork

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On May 15, Crust Shadow successfully completed the registration of Kusuma parallel chain with the ID of 2012. The road to Kusama parachain launch has already begun, according to the Polkadot official release, they will announce the date of the first auction and the expected schedule of further auctions one week in advance. Currently, the Kusama network is expected to launch five auctions in every seven days. More auctions will follow up if there’s no fundamental problems.

According to the latest rewards plan release, with extensive suggestions from our community, Crust has decided to upgrade and optimize its previously announced slot auction plan.

Auction Rewards Upgrade

  • Increased the original rewards cap of 30,000 CRU (Crust Mainnet Token) to 75,000 CRU for the leasing period. With the crowdloans period rewards cap of 15,000 CRU, for a total rewards to 90,000 CRU.
  • Increased CSM (Crust Shadow Native Token) rewards, maximum of 18 million CSM.

Overview of the Latest Auction Plan

  • Crust introduced parallel network Crust Shadow to participate in the Kusama ParaChain Slot Auction. Crust Main Network will participate in the Polkadot ParaChain Slot Auction.
  • We upgraded the rewards to ‘CRU+CSM’. CRU is the Crust mainnet token, which has a recognised value and high liquidity. CSM is the Crust Shadow native token, will be listed on major exchanges in the near future.
  • There will also be rewards during the crowdloans period. Whether the final auction is successful, the contributors can be rewarded.
  • After successfully win the auction, 30% of the rewards will be released immediately and 10% for each subsequent lease term (Kusama parachain slots are divided into 8 leases, each of which is 6 weeks for a total of 48 weeks).
  • After receiving the rewards, you can become a guarantor of the Crust preview network ‘Maxwell’ , to provide guarantee for validators/candidates to earn extra profit.

How to Participate

Once Kusama formally starts the Parachain Auction, Crust will launch a Crowdloan on Kusama. Kusama-native crowdloan mechanism does not require users to send KSM from their wallet/account to a third-party address to participate in. Native crowdloan contributions are made with a special transaction in Kusama using what’s called a campaign index, where contributed KSM remain locked until the end of the lease period.

To participate in a parachain auction, there are two options:

  • For the Kusama-native crowdloan, you can follow the instructions given by Kusama, Crust will also publish a detailed tutorial for everyone to follow.
  • To participate in an auction activity organized by an exchange, wallet application or other third parties, you need to follow the instructions of the third party.

Rewards for Contributors

Crust will offer a certain amount of CRU (Crust native token) and CSM(Crust shadow native token)as rewards for contributors. Currently, CRU has been listed on more than 10 exchanges with a good circulation, and CSM plans to launch on major exchanges in the near future. The reward consists of two parts:

Rewards during Crowdloans Period15,000 CRU and 3 million CSM

Crust will set a valid duration for the crowdloans activity launched on the Kusama network. KSM holders can contribute at any time during our validity period. This duration will not be too short, in order to ensure that Crust can use the crowdloaned KSM for multiple bidding, also prevent possiblefailures and frequent opening crowdloans. Once the bidding is successful, the crowdloan activity will end immediately; if the bidding fails, the activity will last until the set duration expires.

During the crowdloan activity, Crust will take a weekly snapshot of the contribution details. Based on this, Crust will distribute rewards to KSM contributors by airdropping CRU+CSM. The ratio of rewards is 1KSM : 0.07CRU+14CSM each week, that is, contributors can receive 7 CRU and 1, 400 CSM for every 100 KSM loaned per week. The earlier that token holders contribute KSM to the crowdloan, the more rewards they can receive. Up to 15,000 CRU and 3 million CSM will be distributed during Crowdloans period.

Rewards during Slot Leasing Period75,000 CRU and 15 million CSM

Once Crust wins the slot, the contributor’s KSM will be locked until the end of the leasing period, Crust will distribute rewards to the contributor after winning the auction. One parachain slot at Kusama is divided into 8 leasing periods of six weeks each. Crust is bidding for 1st-8th leasing period on a parallel chain for a total of 48 weeks and plans to award a total of 75,000 CRU and 15 million CSM. After the auction is successful, Crust will distribute rewards by airdrop, if the total raised KSM are less than 50,000, the distribution ratio is 1KSM:1.5CRU+300CSM,if the KSM raised exceeds 50,000, a total of 75,000CRU and 15 million CSM will be equally divided according to their contribution percentage. Contributors will receive rewards according to the sequence of participating in the crowdloans activity, 30% of the rewards will be released immediately and 10% for each subsequent lease term.

The rewards plan is summarised as follows:

Reward Distribution Time

For instance, John contributes 100 KSM on the day of the crowdloan activity launching; and Crust wins the auction 4 weeks later; the parachain lease period to win the auction is 48 weeks; a total of 48,000 KSM are locked, then John will get:

1. The rewards of crowdloans activity period: 100 KSM receive 7 CRU and 1,400 CSM one week, 28 CRU and 5,600 CSM for 4 weeks.

2. The rewards of slot leasing period: 100 KSM could receive 150 CRU and 30,000 CSM.

John can receive a total of 178 CRU and 35,600 CSM (lock 100 KSM for 52 weeks) by participating in the Kusama parachain slot auction on Crust.

For more rules on parachain slot auction, please refer to the below article.

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