RFC: Kusama Parachain Auction Strategy

Keep in mind that this is a RFC (Request for Comment) This information is old and outdated. Please see our documentation to get the latest information

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TLDR;

In total, we have a 30% reserve for Kusama Network auctions. For the first auction, we will use 15% of SDN tokens. All crowdloan and auction participants can get SDN tokens by locking KSM tokens for 11 months (1-8 consecutive periods).

We will have a redenomination and 15% will be aound 6,750,000 SDN. Learn more about redenomination here. Some people who are not good at math often misunderstand the concept of redenomination. In terms of value, this doesn’t affect the community and your tokens at all. Polkadot and even European Union executed (re)denominations. If you are interested, you can find so many examples in our history.

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What is a Kusama Parachain Auction?

Shiden Network is one of the Kusama Parachain candidates. Parachains connect to the Relaychain by leasing a slot via permissionless auction. In other words, we need to win the slot auction to lease a Parachain slot. After the start of the lease period, we deploy our mainnet on the acquired slot.

To collect KSM tokens as fast as possible, we choose to crowdfund our slot lease using Kusama’s crowdloan mechanism, allowing KSM holders to contribute by locking up their own KSM tokens for 11 months. We will reward their contributions by providing SDN tokens.

After 11 months, KSM tokens will be returned. Hence, this is neither an ICO nor a direct investment. This is a “staking”.

Learn more from here and here.

Shiden’s Strategy

We will use 15% of the total supply (6,750,000 SDN) and bid for 1-8 slots (7days×6weeks×8slots=336 days). Shiden is a community-driven project and is proud of distributing 65% for the community members in total.

After locking KSM tokens, slot auction participants will receive SDN tokens automatically. Tokens will be locked for one month and have nine months of vesting. We will introduce a new incentive scheme and recommend joining our crowdloan as early as we start the campaign. The earlier you participate, the higher the bonus rate.

The PLO consists of “Crowdloan” and “Auction”. We are going to conduct our crowdloan before the auction. We highly encourage KSM holders to join our crowdloan as soon as possible if they participate in the PLO. The Plasm Network team will publish more details before the actual auction.

Advanced Information


Before the auction, we creates a crowdloan campaign, setting a maximum of total allowed contributions and a campaign end date (likely 1-24 slots), and we invite our community member to participate in it.

What We Need to Decide

  • Early participation bonus
  • When to start our crowdloan
16 Likes

My suggestions

As soon as possible, the Shiden can and must be the first! We can start right now , if everything is ready.

Extra 20% first 5 days
Extra 10% before Auction
No extra after Auction

1 Like

It is impossible to start the crowdloan right now since we need a Parachain ID on Kusama Network. This is not distributed yet.

Where does the bonus come from? 20% and 10% come from 15% SDN distribution budget?

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20% is probably a bit too much. and 5 days is a lot, the bonus should be 1-2 days. the auction may end sooner. I would give out a bonus of 6750000 sdn

One letter, but really important…

auction s

Why you need more than one slot, I conclude that auctions mean slots. Really curious of that.

You need to understand how the Polkadot Parachain slot works. After 11 months, we have to bid the slot again. That’s why I wrote “ auctions”

1 Like

Need a bonding curve for the bonus.

20% is definitely too much. Perhaps start the curve at 5%.

But since there is no cap on the amount of KSM accepted, the amount of SDN per KSM can only be decided when the crowdloan is ended.

1 Like
3 Likes

We close the Request For Comments and we are going to publish our final parameters in days.