Cryptocurrency exchange Kraken says it will support the competitive process of awarding slots to projects on the Kusama (KSM) network.
Kraken says the parachain auctions, which could begin as soon as next week, will open a whole new vista for global cryptocurrency holders over the next couple of days, except to residents of Australia, Canada, Japan and the United States.
“Kraken clients, excluding those in select jurisdictions, will be able to participate in Parachain Auctions in the next few days. They can contribute Kusama to a project’s parachain slot auction from today.”
On Kusama and its closely-related platform Polkadot (DOT), parachains are a form of custom blockchain that are application-specific and which communicate with the main network known as the relay chain.
The rapidly approaching auctions have triggered a rally for Kusama, which is up 55% in the past two weeks, according to CoinGecko, while the rest of the crypto markets have witnessed a major correction.
According to Kraken, the slots awarded to the successful projects during Kusama’s parachain auction will last for a maximum of 336 days.
“In a parachain auction, KSM holders effectively vote for the project they want to succeed by locking their KSM on the Kusama network. The projects with the most KSM locked on their behalf will generally win a Parachain slot for up to 48 weeks. Once the lockup period is over, holders also get their contributed KSM back.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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