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As the commencement of the Parachain auctions approaches, the price of KSM tokens rises.
Kraken, a cryptocurrency exchange based in the United States, has unveiled a “first-of-its-kind” Parachain Auction Platform that would allow clients to participate directly from the exchange.
In a blog post on June 8, Kraken revealed the new platform will enable users that qualify to pledge support for Kusama projects vying for a Parachain slot by staking Kusama’s KSM tokens.
The rewards for contributors who support a winning bid vary and can include referral bonuses, early participation bonuses, and airdrops.
Polkadot’s multi-chain ecosystem will execute transactions in parallel via sharded sidechains. These parachains are obtained through an auction procedure in which projects compete to outbid one other for the privilege to utilise the slot for 48 weeks in exchange for KSM tokens. Kusama is Polkadot’s testing and development network, sometimes known as the “Canary network.”
Only 100 parachain spaces are planned to be available, although this may vary over time due to protocol governance votes.
According to the post:
“For Kusama auctions, the project with the most KSM bonded to support its bid, at the time the auction snapshot is taken, will generally be able to claim the auctioned parachain slot.”
Residents of the United States, Canada, Japan, and Australia are not permitted to use the site.
Kraken will allow consumers to support the bids of at least two projects in its inaugural parachain auction, beginning with Karura and Shiden.
Karura is a Kusama network DeFi hub and stablecoin platform that provides a crypto-collateralized stablecoin, a decentralised exchange, access to liquid staking, and an EVM (Ethereum Virtual Machine) compliant blockchain.
Shiden is a smart contract layer for the Kusama network that allows developers to create new DApps. It will be a cross-chain platform that supports Ethereum as well as layer two protocols.
Polkadot founder Gavin Wood has recommended June 15 for the inaugural Kusama Parachain auction, according to Cointelegraph. Following the first five weekly auctions, Wood suggested a halt to assess the network’s success before launching another round of auctions.
Acala Network was the first project to earn a Parachain spot on Polkadot’s Rococo testnet in late March. Polkadot stated on May 17 that Kusama was now ready to host Parachains.
The impending auction launches have given a boost to Kusama’s KSM token which has defied the market slump and surged 28% over the past fortnight. According to CoinGecko, KSM is up 12% over the past 24 hours, trading at $410 at the time of writing.