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Crowdloan
Kusama and Polkadot allow Parachains to source tokens for their Parachain bids in a decentralized crowdloan. Shiden Network and Astar Network conduct a crowdloan campaign to secure Parachainn slots.
Kusama Network
Kusama is a scalable network of specialized blockchains built using Substrate and nearly the same codebase as Polkadot. The network is an experimental development environment for teams who want to move fast and innovate on Kusama, or prepare for deployment on Polkadot.
Crowdloan Mechanism
The crowdloan mechanism allows people to contribute by agreeing to lock up their own KSM until the end of the lease. SDN token (the native token of Shiden Network) is distributed based on the amount a user lock and when he/she locks.
Step1: Creating a crowdloan campaign
Stake Technologies sets a maximum of the total allowed contributions and a campaign end date and invites our community to participate. We incentivize people to join the crowdloan instead of the auction.
Step2: Initiate a transaction
Crowdloan contributors initiate a special transaction allocating transferable KSM to the campaign’s index. Keep in mind that this transaction is different from a normal transaction. Contributors should NOT send KSM to an external account.
Step3: Contribute
KSM contributions can be submitted throughout the duration of the crowdloan campaign or until an auction is won, up to the maximum amount of contributions set by the parachain team when creating the campaign. However, because of the nature of the auction, the earlier you joined the campaign, the more SDN tokens you can get.
Step4: Winning the auction
If Shiden Network wins an auction, the chain is automatically deployed at the start of the lease, and the full amount of KSM contributed to the campaign index will remain locked for the duration of the lease.
Step5: Returning KSM
Crowdloaned KSM will be returned to the contributor’s control at the end of the lease period. Contributors don't need to withdraw KSM tokens. KSM will be returned automatically.
The details is described 👇
Source:
Kusama, Polkadot's Canary Network
Last modified 4mo ago
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