The US cryptocurrency exchange Kraken has announced a “first” Parachain auction platform that allows customers to participate directly in the exchange.
In a June 8 blog post, Kraken revealed that the new platform will allow users who qualify to pledge support for Kusama projects that are vying for a parachain slot by staking Kusama’s KSM tokens.
The rewards for contributors who support a successful bid vary and may include referral bonuses, early participation rewards, and airdrops.
Polkadot’s multi-chain ecosystem will use shard sidechains to process transactions in parallel. These parachains are acquired in an auction process in which projects try to outbid each other for the right to use the slot for 48 weeks with KSM tokens. Kusama is the test and development network, often referred to as Polkadot’s “Canarian Network”.
Only 100 parachain slots are expected to be available but this may change over time due to voting on the record keeping.
“In the case of Kusama auctions, the project with most KSM bonds can generally claim the auctioned parachain slot to support its bid at the time the auction snapshot is taken.”
The platform is not available to residents of the United States, Canada, Japan, and Australia.
In its first Parachain auction, Kraken will allow its customers to endorse the bids of at least two projects, starting with Karura and Shiden.
Karura is a DeFi hub and stablecoin platform for the Kusama network that offers a crypto-secured stablecoin, a decentralized exchange, access to liquid staking and an EVM (Ethereum Virtual Machine) compatible blockchain.
Shiden is a smart contract layer for the Kusama network on which developers can design and build new DApps. It will be a cross-chain platform that also supports Ethereum and Layer 2 protocols.
As Cointelegraph reports, Polkadot inventor Gavin Wood proposed June 15 for the first auction of Kusama Parachain. After the first five weekly auctions, Wood recommended taking a break to assess the network’s performance before starting another series of auctions.
At the end of March, Acala Network secured a Parachain slot in Polkadot’s Rococo test network as its first project. On May 17, Polkadot announced that Kusama was finally ready to host Parachains.
The upcoming auction starts have given Kusama’s KSM token a boost that has defied the market slump and is up 28% in the past two weeks. According to CoinGecko, KSM is up 12% in the past 24 hours and was trading at $ 410 at the time of writing.