Kusama Parachain Auction Plan | Crust Network
On April 7, Kusama announced the details of the Kusama parachain slot auction (https://kusama.network), signaling the parachain slot auction process is nearing the launch stage and will start the auction process after the successful launch of the public benefit parachains. Learn about how KSM holders can participate in the auction process, rewards they will receive, and claiming rewards.
The Crust parallel network is named ‘Shadow’.
The Crust parallel network ‘Shadow’ will participate in the Kusama parachain slot auction. As a bridge using Kusama parachain resources, Crust Shadow is responsible for the exchange of information between the Kusama parachain and the Crust Network (mainnet).
Crust Network will participate in the Polkadot parachain slot auction in the near future, and strive to access parachains to bridge the information exchange between Kusama and Polkadot through parallel net Crust Shadow.
Contributors
Once Kusama formally launches the parachain auctions, Crust will launch a Crowdloan on Kusama. The Kusama-native crowdloan mechanism does not require users to send KSM from their wallet/account to a third-party address to participate. 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:
1. For the Kusama-native crowdloan, you can follow the instructions given by Kusama, Crust also has a detailed tutorial for everyone to follow.
2. To participate in an auction organized by an exchange, wallet application or other third party organization, you need to follow the instructions of the third party.
Contributor Rewards
Crust will offer a certain amount of CRU (Crust native token) as a reward for contributors. Currently, CRU has been listed on more than 10 exchanges with good circulation. The reward will be divided into two parts:
1. Rewards for Crowdloan Period
Crust will set a duration for the crowdloans activity launched on the Kusama network, and token holders can contribute at any time during the validity period. This duration will not be too short, and will allow Crust to use the crowdloaned KSM for multiple bids, in order to deal with possible bid failures, and avoid frequently opening crowdloans. If the bidding is successful, the crowdloan activity will end immediately; if the bidding fails, the activity will end after 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.
The tentative ratio of rewards is 1KSM : 0.07 CRU + 14 CSM each week, that is, contributors can receive 7 CRU + 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 3,000,000 CSM will be distributed during Crowdloans period.
2. Rewards for Slot Lease Period — 75,000 CRU and 15,000,000 CSM
Once Crust wins the auction, the contributor’s KSM will be locked until the end of the lease period, and Crust will distribute rewards to the contributor after winning the auction. A parachain slot at Kusama is divided into 8 leases period of six weeks each. Crust is bidding for 1–8 leases period on a parallel chain for a total of 48 weeks, and plans to award a total of 75,000 CRU and 15,000,000 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 (every 6 weeks).
The award scheme is summarised as follows:
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.
Claiming Rewards
After the rewards are distributed, contributors that participated in crowdloans through Kusama’s local crowdloans mechanism can use the account of KSM to claim CRU rewards on the Crust Preview Network ‘Maxwell’ (https://apps.crust.network/) . There are no restrictions for CRU on Maxwell, and it can be withdrawn at any time or provide pledge for validators /candidates on Maxwell to earn extra profit. A detailed guideline will be published shortly.
If participating through another third party, contributors should claim award with the instructions issued by the third party, and Crust will also provide corresponding assistance.
Liquidity Release Plan of Locked KSM
In order to meet demands of some contributors for a liquidity release of locked KSM, Crust is actively communicating with exchanges and third-party liquidity release providers to develop a liquidity release solution. Crust will keep you updated as soon as we have the latest news.
Auction Plan Highlights
1. Rewards will be the Crust native token CRU, which has a market value and high liquidity.
2. There will also be rewards during the crowdloan activity period, and the APY is very attractive. No matter whether the auction is successful or not, the contributors will be rewarded.
3. After the successful auction, the corresponding rewards will be released immediately, without any restrictions.
4. After receiving the reward, contributors may choose to become a guarantor of the Crust Preview Network ‘Maxwell’ , providing a pledge for validators/candidates on Maxwell to earn extra profits.
Disclaimer: As there is still some information that is not clear about the Kusama Parachain Auctions, according to the changes of the actual situation, the above plan may be adjusted accordingly. Stay tuned for the latest news.
