Polkadot's experimental network Kusama recently announced an upgrade to version v0.9.1, which includes crucial code for parallel chains, auctions, and crowdfunding. This upgrade reduces the minimum allocation by 100 times and cuts fee deposits by 50 times, signaling the imminent launch of Kusama's slot auctions.
Earlier this month, Polkadot released version v0.9.0, enabling full parallel chain functionality and preparing the groundwork for cross-chain bridges—including the anticipated Polkadot-Kusama bridge. Once deployed, this bridge will allow the transfer of 1% of DOT tokens into the Kusama ecosystem.
What Is Kusama's Role in the Polkadot Ecosystem?
Often referred to as Polkadot's "canary network," Kusama serves as an experimental testing ground for cutting-edge blockchain governance, staking, and sharding mechanisms. Unlike Polkadot, which prioritizes stability, Kusama operates with faster governance parameters and lower barriers to entry, making it ideal for rapid innovation.
Despite its experimental nature, Kusama has its own native token (KSM) and mirrors Polkadot’s token distribution model.
The Road to Polkadot’s Slot Auctions
The auction process unfolds across three networks:
- Rococo v1 Testnet: Stabilization and testing.
- Kusama: Deployment of public-interest parallel chains and auctions.
- Polkadot Mainnet: Final audits, auctions, and parallel chain integration.
Key Auction Steps:
- Rococo v1 stabilization.
- Kusama’s public-interest parallel chains go live.
- Kusama auctions commence.
- Winning parallel chains deploy.
- Polkadot’s public-interest chains launch post-audit.
- Polkadot auctions begin.
- Winning Polkadot parallel chains go live.
The successful launch of Rococo v1 in March 2021 marked the first step toward slot auctions. Now, Kusama’s auctions will determine the pace of Polkadot’s mainnet rollout.
👉 Why Kusama’s auctions are critical for Polkadot’s growth
Understanding Kusama’s Slot Auctions
Auction Mechanics
Slot auctions use a modified candle auction format:
- Fixed start time.
- Retroactive end-time determination (a past block is randomly selected as the true cutoff).
- Later bids carry higher failure risks.
Polkadot founder Gavin Wood estimates ~100 parallel chain slots long-term, though Kusama’s initial capacity will be lower. Not all slots are auctioned—some are reserved for system chains and threads.
Crowdloans: A Community-Driven Alternative
Projects can leverage Kusama’s built-in crowdloan mechanism to pool KSM from supporters. Contributors lock their KSM for the lease duration, earning project tokens as rewards.
Crowdloan Process:
- Teams set campaign parameters (max KSM, end date).
- Supporters lock KSM via specialized transactions.
- Funds remain locked until lease ends or auctions fail.
- Unlocked KSM returns post-lease.
Note: Locked KSM cannot be staked or transferred during the lease.
What’s Next?
With parallel chain modules now deployed on Kusama, governance votes will soon initiate:
- Blank-slate chains.
- Public-good parallel chains.
- Project auctions.
Expect Kusama’s auctions in late May 2021. Once stable, the system will migrate to Polkadot, potentially triggering a major ecosystem expansion.
FAQs
Q: How long do slot leases last?
A: Leases run for 6–24 months, renewable via new auctions.
Q: Can projects lose auctioned slots?
A: Yes—teams must rebid post-lease or transition to parallel threads.
Q: What’s the cost of running a parallel chain?
A: Primarily the staking opportunity cost of locked KSM/DOT.
Q: How many slots are available initially?
A: Kusama will start with fewer than 100, scaling up over time.
For deeper insights, explore Kusama’s auction dynamics.