Kusama opens slot bidding to challenge ethereum

Polka cross-chain network operation officially enters the trial phase.

At 18:51 pm on June 15, Kusama parallel chain slot bidding channel officially opened at block height 7924237, one hour earlier than the original plan of 20:00 pm.

Since then, Polkadot (Polka) cross-chain network operation has entered the real experimental stage, and popular projects such as community Moonbean first network Moonriver, Bifrost and Karura pledged KSM to participate in the auction at the first time.

OKLink data shows that as of 3:00 pm on June 21, 12 registered IDs participated in crowdfunding bidding and 2 registered IDs participated in self-funding bidding, and a total of 741,000 KSMs have been locked, among which Karura locked 492,000 KSMs and is the project with the most pledged KSMs in the Kusama parallel chain slot for bidding at present.

For KSM holders, the opening of the parallel chain slot auction provides an additional investment channel, but long-term pledges also test investors’ ability and luck in selecting projects.

Karura leads the way with 740,000 KSM locked in 6 days

The first phase of Kusama parallel chain slot auction is coming to an end in one day. OKLink data shows that as of 3:00 p.m. on June 21, a total of 14 projects have participated in the auction, locking in a total of 741,000 KSM. At the same time, KSM is provisionally quoted at $266, and the slot auction has locked in KSM equivalent to about $198 million.

Kusama, as the pioneer network of Polkadot, the core functions and formation deployed on the Polkadot main network will be the first to experiment on Kusama. Parallel chain slot bidding has landed on Kusama for experiment, and subsequently, the Polkadot main network will also enter the parallel chain slot bidding stage.

On June 8, Pokadot founder Gavin wood posted on the community blog that Statemine, the first real-world functional parallel chain, had started processing transactions without permission after last week’s upgrade, and after a smooth run over the weekend, it was time to move on to the next phase: slot auctions.

Statemine is the equivalent of a relay chain on Kusama, and based on Statemine, developers can create, issue and trade common Tokens, NFTs and other on-chain assets, plus serve as a low-cost place to hold and transfer KSMs, and most importantly, other parallel chains can access the Kusama network through Statemine for cross-chain interaction.

To access the Kusama network, parallel chains need to pledge KSM to bid for slots, some teams may not have enough KSM to pledge for bidding in the early stage, and at the same time, so that all KSM holders can participate, Kusama has set up a Crowloan (crowd lending) function to encourage teams to raise KSM to participate in bidding by motivating community users with their own Tokens.

This model is similar to DeFi liquidity mining, where users provide KSM to the project owner to participate in the bidding slot and receive incentives in the form of project owner tokens. The difference is that DeFi liquidity mining users can withdraw the pledged assets at any time, while slot bidding can only unlock the pledged KSMs after the end of the usage cycle.

This kind of rule is more like a long-term investment for ordinary users to participate in KSM slot bidding, so it also tests users’ ability and luck to select projects.

According to Wang Haifeng, a senior researcher of OUKE Cloudchain Group, users’ participation in Kusama and Polkadot parallel chain slot auctions has a certain realization period, which indeed tests investors’ ability and luck in choosing projects. He suggests that when selecting a project, it is not only important to look at the economic model of the project, the amount of community users and other basic elements to measure whether a project can create value in the long term, but also to pay attention to whether the founding team of the project has the determination and readiness to stick to the project in the long term.

After the Kusama slot auction channel opened, popular projects such as Moonriver, Bifrost and Karura from Polkadot community were the first to participate in the auction. Among them, Karura had the highest pledge volume, pledging 457,000 pieces as of 3pm on June 21, accounting for over 60%, followed by Moonriver, locking 111,000 pieces of KSM at the same time. The mainstream funds still went into the head projects with stable operations.

Kusama opens slot bidding to challenge ethereum

Kusama opens the first auction

In order to prevent projects from sniping bids, i.e. not participating in the first stage and then bidding the highest price at the last moment to get the right to use the parallel chain slots, Kusama slot bidding uses candle auction, the specific rules are “2+5” two stages combined, the first 2 days is a general auction, the highest bidder wins, after 2 days into the uncertainty of After 2 days, the auction enters an indeterminate “Endingperiod” in which the system selects a random block height for 5 days as the real auction end time to determine which item is successful.

Therefore, Karura, which currently has the most KSMs locked in, is not guaranteed to be 100% successful.

As planned, Kusama is expected to start with 5 rounds of auctions, each 7 days apart, and if no major issues arise, it will move on to the next round of auctions, with the next ranking round to open on June 22 at 11:00 GMT (7:00 PM BST).

Polkadot experimental run meets public chain turnover boom
Polkadot’s technical route and vision is to open up links between different blockchains through cross-chains, while bringing together chain core data such as transactions from different chains to record and process on relay chains, so as to solve the current problems of insufficient scalability, high usage cost and low efficiency of public chains, and has always been highly expected.

However, starting from the project launch in 2016, the public chain experienced a silence in 2018 and 2019, and then DeFi exploded in the second half of 2020, forcing the public chain to upgrade and iterate to prosper a round again, with Polkadot team always developing.

Coincidentally, Kusama’s opening of parallel chain slot bidding at this time coincides with the public chain iteration boom, and the market is bustling with Solana, founded by Intel and Dropbox engineers, Polygon (MaticNetwork), known as India’s Ether, and a host of other Layer2s all showing their skills to make up for Ether’s shortcomings to seize the market.

Looking at the circulating market value of project tokens, these new public chain projects are on the rise, and old public chains such as EOS have been left behind. As of June 21, 3pm, Solana’s circulating market value was $8.29 billion, ranking 12th, and Polygon’s circulating market value was $7.96 billion, ranking 13th.

Ether 2.0, which is also not yet online, is also eyeing the competition in the public chain. According to OKLink data of OUKE cloud chain, as of 10:00 a.m. on June 21, Ether 2.0 deposit contract address has received a total of 5.72 million ETH, and Ether fans keep pledging ETH into the Ether 2.0 contract, and the expectation for Ether 2.0 is not low.

After all, despite the congestion and high Gas fees that have caused many developers and users headaches, the current completeness and volume of the Ethernet ecology is unmatched by any public chain project. Data from OKLink, the OUKE cloud chain, shows that as of June 21, the TVL of DeFi protocol on Ether is $69.3 billion, of which Curve, which ranks first in TVL, has $8.17 billion in locked funds.

TVL of DeFi protocol on Ether has picked up recently

At the same time, the highest circulating market cap on Ether is the decentralized exchange Uniswap, whose governance token UNI is provisionally quoted at $18.4 with a circulating market cap of $9.57 billion, ranking ninth, while Polkadot’s token DOT is provisionally quoted at $18.3 with a circulating market cap of $17.04 billion, ranking eighth, with the market cap of one Uniswap on Ether exceeding Polkadot’s market cap is more than half that of Polkadot.

The Polkadot community currently has close to 300 projects being deployed, and data shows that 54 are currently on the exchange, with the highest market cap being the data storage platform ANKR, with a circulating market cap of $469 million at press time.

Polkadot ecological volume is still far behind Ether, once Ether 2.0 lands and solves the current problems of congestion and high cost of use, relying on the current strong ecological foundation, it is difficult for Polkadot, the challenger of Ether, to shake the status of the king of public chain in a short time. There is a popular saying in the public chain circle recently that the period before the official landing of ETH 2.0 is the last window period for all new generation public chains.

In early June, Vitalik, the founder of Ether 2.0, revealed to the public that Ether 2.0 will only be able to have the scalability needed to support large enterprise applications perhaps by the end of 2022.

If it lands at the time V-God expects, Ether 2.0 is still a year and a half away from being operational, which gives Polkadot more opportunities to grow. Now that Kusama has opened the parallel chain auction, according to the timeline announced by the Polkadot community, the parallel chain auction is the last procedure for Polkadot to be officially put into use. Once all audits are completed and the parallel chain is running smoothly on Kusama, the Polkadot community can enable the parallel chain feature and start the slot auction via on-chain governance on Polkadot to start slot auctions on Polkadot through on-chain governance.

With the parallel chain running on Polkadot, after the code is fully developed, tested, benchmarked and audited, future iterations of the network upgrades will also be decided by community governance, and from here, Polkadot is put into use and where it goes from here will depend on the community.

Although Polkadot, as a cross-chain network, is different from the independent blockchain ecology of Ether, to challenge Ether, Polkadot currently has a long way to go. Whether it can successfully complete the basic network before the landing of Ether 2.0 is crucial to the construction of Polkadot’s ecology.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/kusama-opens-slot-bidding-to-challenge-ethereum/
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