Kusama has officially kicked off its 13th consecutive parachain slot auction, marking another pivotal moment in the evolution of the Polkadot ecosystem. As one of the most dynamic and experimental networks in the blockchain space, Kusama continues to empower innovative projects through decentralized governance and community-driven participation.
The 12th parachain slot was recently secured by Picasso, a DeFi-focused parachain developed by Composable Finance. The auction concluded on January 1, 2021, at 18:44, followed by a 52-minute "candle auction" phase where a random block was selected to determine the final result. Picasso emerged victorious after successfully locking 112,655 KSM in support of its crowdloan campaign.
It’s important to note that Picasso will not immediately begin producing blocks on the Kusama relay chain. The project won the lease period from Lease 17 to Lease 24, while the current network cycle remains in Lease 16. This means Picasso will go live approximately 26 days after the auction ends, once the new lease period begins.
Understanding Kusama's Parachain Auction Mechanism
Kusama uses a candle auction model for its parachain slot allocations—a unique mechanism designed to prevent last-second bid manipulation. During each auction, there is a randomized ending point ("candle moment") determined by an on-chain random number. This ensures fairness and reduces strategic bidding behavior near the close.
Each slot lease lasts for 8 weeks, and up to 8 concurrent leases can be active at any given time across Kusama’s 24 available slots. Projects can bid for multiple lease periods, and successful candidates are integrated into the relay chain when their designated lease begins.
With the launch of the 13th auction just hours after the 12th concluded, Kusama maintains its fast-paced, continuous rollout of innovation. Notably, during the ongoing Lease 16, four auctions will take place. All winning projects from this phase will join the network simultaneously at the start of Lease 17.
Currently, the leading contender in the 13th auction is Bit.Country Pioneer, the Kusama-based precursor to Bit.Country—a metaverse platform enabling users to create sovereign digital worlds. Its strong community backing reflects growing interest in decentralized virtual environments and user-owned digital economies.
How Crowdloans Work: Community Support for Parachain Bids
Projects without sufficient capital often rely on crowdloans to gather enough KSM for a competitive bid. In a crowdloan, community members contribute their KSM to support a project’s parachain bid in exchange for future rewards—such as project-specific tokens, NFTs, or ecosystem incentives.
Contributors should understand two key outcomes:
- If the project wins the auction, their KSM is locked for the duration of the lease period (e.g., 8 to 96 weeks) and automatically returned upon expiration.
- If the project fails to win, contributed KSM is returned shortly after the crowdloan campaign ends.
This mechanism fosters strong alignment between teams and supporters, ensuring only projects with real community demand gain network access.
Key Considerations When Participating in a Crowdloan
Before contributing to any crowdloan, it’s crucial to perform thorough due diligence (DYOR—Do Your Own Research). Below are essential factors to evaluate:
Project Fundamentals
- Vision & Use Case: What problem does the project solve? Is it building infrastructure, DeFi tools, gaming platforms, or identity solutions?
- Technology Stack: Is it built on Substrate? Has it received Web3 Foundation grants or participated in official programs like Substrate Builder?
- Development Progress: Is there a working testnet? When is mainnet functionality expected?
Team & Reputation
- Are team members publicly identifiable with verifiable professional backgrounds?
- Do they have prior experience in blockchain or related industries?
- Check LinkedIn profiles, AMAs, interviews, and past projects.
Tokenomics
- What role does the native token play?
- Is the supply fixed, inflationary, or deflationary?
- How are tokens distributed among contributors, team, treasury, and investors?
- What is the vesting schedule and staking yield?
Ecosystem & Community
- Who are the project’s partners and validators?
- How active is its social media presence (Twitter, Telegram, Discord)?
- Are there regular development updates or transparent reporting?
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Trusted Channels for Participating in Crowdloans
Not all participation methods are equal. Here are secure and widely used options:
Polkadot.js Portal
The official interface provided by Parity Technologies. It offers maximum security since your KSM is locked directly within the Kusama relay chain via the native crowdloan module. No third party can access your funds.
Zenlink SlotVault
A multi-reward platform allowing users to earn both project-specific tokens and ZLK (Zenlink’s native token). Funds remain secured in the official crowdloan module, combining safety with enhanced yield opportunities.
Bifrost SALP (Smooth Automatic Liquidity Protocol)
One of the most innovative solutions for crowdloan participants. Since most parachain bids require locking KSM for up to a year, SALP issues vKSM (liquid staking derivatives) that represent locked KSM value—enabling users to maintain liquidity while still supporting their chosen project.
This means you can trade, stake, or use vKSM in DeFi protocols across Kusama and Polkadot ecosystems without waiting for lease expiration.
Avoiding Scams: Safety Tips for Crowdloan Participants
With increased participation comes higher risk of fraud. Follow these guidelines:
- Never send KSM directly to individuals or private wallets.
- Always verify URLs—scammers often create fake versions of popular sites.
- Only use channels officially endorsed by the project team.
- Double-check announcements via multiple sources (official website, Twitter, GitHub).
- Be skeptical of promises offering unrealistic returns.
Frequently Asked Questions (FAQ)
Q: When will my KSM be unlocked after a crowdloan ends?
A: If the project wins, your KSM stays locked until the end of its lease period (e.g., 48 or 96 weeks). If it loses, funds are typically returned within a few days after the campaign closes.
Q: Can I participate in multiple crowdloans at once?
A: Yes, you can split your KSM across different projects using separate accounts or wallets. However, each contribution is subject to lock-up terms if that project wins.
Q: What happens if a project I support wins but later fails operationally?
A: Even if a project underperforms or shuts down, your KSM is still securely held by the relay chain and will be released at lease end. Your principal is protected regardless of operational success.
Q: Are there tax implications for crowdloan rewards?
A: In many jurisdictions, receiving token rewards may be considered taxable income at fair market value upon receipt. Consult a tax professional familiar with crypto regulations.
Q: Why choose Bifrost SALP over direct contribution?
A: SALP allows you to retain liquidity through vKSM tokens while still supporting your preferred project—ideal for those who want exposure without sacrificing flexibility.
Q: How often do new auctions occur on Kusama?
A: Kusama runs continuous auctions with overlapping cycles. A new auction starts roughly every few days as part of a sequence of 24 total slots.
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Final Thoughts
Kusama remains at the forefront of blockchain experimentation, serving as a canary network for Polkadot while fostering groundbreaking innovations in DeFi, NFTs, metaverse applications, and cross-chain interoperability. With each new parachain auction, the network strengthens its decentralized foundation through community participation.
As the 13th auction unfolds and projects like Bit.Country Pioneer vie for network resources, now is an excellent time to engage thoughtfully—with research, caution, and optimism.
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