With the Kusama slot auction coming up, will boca see a new explosion?

The Kusama parallel chain slot auction will most likely open in late May, which means the parallel chain feature will be ready to deploy to the main Polka network.

With the Kusama slot auction coming up, will boca see a new explosion?

On May 13th BocaFirst.com Kusama announced on Twitter that the upgrade version v0.9.1 has been approved by the Council (Council) and is undergoing a referendum. The upgrade includes parallel chains, auctions and crowdfunding codes that reduce the minimum allocation by 100x and the fee deposit by 50x. This means that the Kusama slot auction is about to open.

Just on May 6, Polkadot released a new version, Polkadot v0.9.0, which includes client changes that enable the parallel chain to function correctly. Once all nodes are successfully upgraded to this version, the parallel chain functionality will be officially deployed to the Kusama chain. This release also integrates Beefy and MMR (Merkle Mountain Range) in preparation for the Poca-Ethernet bridge, as well as the Poca-Kusama bridge that Gavin mentioned earlier (which, once connected, allows 1% of DOT to be transferred to the Kusama network) and other cross-chain bridges.

What does Kusama mean for Poca?
The Kusama network is known as the “canary network” of Poca. Unlike other blockchain networks, Kusama is an early, unaudited, experimental network that helps users understand how technologies at the forefront of governance, staking, sharding, etc. work in a real economic environment. Although it is an experimental network, it has its own token, KSM, with the same token allocation mechanism as the main Poca network.

Unlike the main network role played by PoC, the Kusama network is more frantic and fast to deploy and build, it has faster governance parameters and lower barriers to entry. On the contrary, Poca is a bit more conservative, it will take more into account the stability and reliability of the network, and is slightly slower but smoother in the governance and upgrade process.

The official slot auction process announced by Poca consists of seven steps, with the core process involving three blockchain networks, Rococo, Kusama, and the main Poca network, the test network.

Auction process.

1、On-line Rococo v1 (test network) and wait for its stable operation.

2、On-line the system (public interest nature) parallel chain of Kusama.

3、Open bidding on Kusama.

4、Launch the parallel chain with successful bidding on Kusama.

5、After the audit is completed, put online the parallel chain of public interest on Polkadot.

  1. opening of auctions on Polkadot.
  2. Launching the parallel chains with successful bids on Polkadot.

The smooth launch and operation of the parallel chain test network Rococo V1 in March this year is the first step to the official opening of Polkadot’s parallel chain slot auction, and after that Kusama’s parallel chain slot auction will be the key link to the final Polkadot parallel chain slot auction. In other words, if the Kusama network can complete the auction properly and smoothly this time, then the subsequent Poca will lead to a real explosive development.

Similar to the previous test network Rococo V1 process, when blockchain projects are connected to the kusama network and run stably for a period of time, these kusama parallel chain networks can be connected to the main Poca network through parallel chain slots as the relevant functions of the main Poca network are improved.

What you need to know about Kusama slot auction
Auction mechanism

Parallel chain slot auctions follow an optimized form of candle auctions. Unlike regular candle auctions, parallel chain slot auctions do not use random numbers to determine the duration of their opening phase; it has a known start time, takes place on the blockchain, and when the auction ends, retroactively determines when it ended at some point in the past. In other words, that is, at the final end, a random block from the past is counted, and this past block is the time when the real auction closes. Polka officials explain that because the retroactively determined end time may be earlier than the bid submission time, later bids have a higher probability of failure.

Gavin Wood, the founder of Boca, said at the Boca China event in July 2020 that the number of parallel chains is capped at about 100, which means the number of slots is also capped at about 100, but the number of slots may be further increased in the future through optimization (e.g. secondary relay chains). Officially, even though Kusama officially opened the auction, to fully support 100 parallel chain slots is not possible in the short term, after which it will gradually increase with the upgrade of the system. In addition, not all slots are allocated through the auction, some of them are through the system parallel chains and parallel threads started by governance.

Crowd-lending of slots

In addition to direct participation in auctions, project parties can use Kusama’s built-in crowdloan mechanism to crowdfund their slot leases. This mechanism is used by users to support project parties to win auctions by locking their KSMs. During this period, project owners can encourage users to support them by rewarding them with tokens for their projects or in other ways.

The process of crowdfunding on the Kusama platform is divided into the following steps.

  1. the team creates a crowdloan campaign, sets the maximum crowdloan amount needed and the campaign end date (considering the possibility of losing one or more auctions, the team launches a crowdloan campaign that can run multiple auctions), and invites the community to participate.
  2. the Crowdloan contributor initiates a special transaction that assigns the transferable KSM to the campaign’s index (unlike a normal send transaction, the KSM contributor cannot send the KSM directly to an external account).
  3. contributors of KSMs can submit them during a crowd-lending campaign, or before winning an auction, up to the maximum crowd-lending amount set by the parallel chain team at the time of campaign creation.
  4. if there are enough KSM to win the auction, then the entire amount of KSM contributed to the campaign will remain locked in for the duration of the lease.
  5. the crowdloaned KSM can be unlocked and returned to those contributors at the end of the rental period. If the team does not win the auction at the end of the crowdloan campaign, the contributor’s KSM can be unlocked at the end of the campaign.

Note that locked KSMs remain in the account used to bid on the slot auction for the duration of the parallel chain lease and cannot be used for other purposes such as pledging. When the slot rental period ends, users can unlock the KSM for free transfers, withdrawals and pledges. For KSMs locked during the crowdfunding process, the KSMs are in a locked state throughout the entire process from the start of the auction to the end of the lease period. If the crowdfunding campaign is unsuccessful in obtaining the right to use the slots through the auction, in this case, the user’s locked KSMs can be unlocked at the end of the campaign and returned by the Parallel Chain team.

If the project owner fails to bid, they can participate in a subsequent auction and bid again. Once the parallel thread feature is live, they will be selected to access the Kusama network as a parallel thread. At the end of the lease period, the slots will be re-auctioned and the team will need to bid again if the project owner wishes to keep the slots. The official announcement shows that the parallel chain slots are interchangeable, so there is no need for project parties to bid on the same slot multiple times. In addition, to minimize the risk of losing subsequent auctions, teams can bid and secure an adjacent slot position before the end of the current lease period.

The price of leasing a parallel chain slot depends on market supply and demand; however, it is important to note that the actual cost of a parallel chain slot is not equal to the price of a parallel chain bid. Since the KSMs (bonds) tied to a parallel chain are returned at the end of the slot lease, the actual cost of a running parallel chain is the opportunity cost of the KSMs that cannot be staking during the lease period.

On May 2, Gavin officially deployed the parallel chain module to Westend and Kusama runtimes. This means that Parity has added the function of parallel chain to the Kusama network, and the next step is to deploy whiteboard chain and public interest parallel chain by governance voting and so on, after which it will start the auction of parallel chain slots for project parties.

According to the official progress announced by Polka, Kusama parallel chain slot auction will most likely be opened in late May, and when Kusama parallel chain function runs stably for a period of time, it can be deployed to Polka main network, and then Polka will probably usher in a period of really explosive development.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/with-the-kusama-slot-auction-coming-up-will-boca-see-a-new-explosion/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-14 19:48
Next 2021-05-14 19:52

Related articles