Kusama Parachain Auctions – The Next Generation Of Token Offerings is Here

There is a lot of underground buzz in crypto surrounding the upcoming Polkadot and Kusama auctions. The sister networks, founded by Ethereum co-founder Gavin Wood, aim to give developers the ability to create new crypto assets and decentralized applications on top of the network, with interoperability with other blockchains as the main advantage. 


The auctions are a key ecosystem development as they provide an opportunity for retail investors to participate in new project launches and receive project tokens. A key difference between parachain auctions and ICOs (or IDOs and IEOs), however, is that participants maintain control and ownership over their funds. Instead of exchanging ETH for tokens, users can stake their DOT or KSM in exchange for project airdrops. If the project loses the auction or the parachain slot expires, all funds are returned. 

How Do Parachain Auctions Work?

Both Polkadot and Kusama are designed around two types of blockchains – relay chains and parachains. Relay chains finalize network transactions, while parachains confirm that transactions are accurate. 

The relay chains do not support smart contracts themselves. Instead a relay chain secures smart contract functionality from parachains that plug into it. In order to launch a project on one of the relay chains, such as Polkadot or Kusama, projects must compete for one of 100 parachains slots available, but that number is subject to change over time through governance voting. 

To win a parachain auction, projects must stake tens of millions of dollars, usually done through ‘crowdloans’ supported by the community members. The projects must vie for a limited number of spots, with large pools of capital, creating capital insulation against market volatility, but the most amount of funding does not necessarily guarantee a parachain slot. 


Prior to the auction going live, supporters can stake DOT or KSM for a predetermined amount of time, usually 48 weeks for Kusama, to support the project they believe should receive the parachain slot. In return, many of the projects are committing airdrop tokens and other rewards to their supporters. It appears that projects will also be able to buy parachain slots on the secondary markets from those who won it on auction. 

Kusama actions are starting June 15th, with a full schedule available on their website. Polkadot auctions are expected to follow later this summer.

Which Projects Are Launching?

There are dozens of projects vying for the available parachain spots in the coming weeks. To illustrate a few of the top projects, I picked five that were referred to me by community members and received the most institutional investment support pre-launch. 


Sakura: Clover’s sister project, an operating system parachain on Kusama, supported by Polychain Capital, Kyros Ventures, Blockdream Fund and Alameda Research.

Karura: Acala’s sister project, building a DeFi hub on Kusama, backed by Arrington XRP, Pantera, ParaFi Capital and Coinbase Ventures. 

Moonriver: Moonbeam’s sister project, a Solidity Smart Contract platform on Kusama, backed by Coinbase Ventures, Parafi and Fenbushi Capital.


Crust Shadow: Crust Networks’s sister project, a decentralized storage network for the Web3.0 ecosystem, supporting multiple storage protocols such as IPFS. Crust is supported by Chain Capital and Bitcoin.com.

Shiden:  Plasm Net’s sister project, a multichain smart contract platform for Kusama and backed by Binance Labs, Block Dream Fund, Microsoft MSFT and Berkeley Blockchain Accelerator.

How to Participate in Kusama Auctions

There are both centralized and decentralized options for users to stake their DOT and KSM for parachain auctions. 


Participants can contribute KSM directly without leaving the exchange through Kraken, KuCoin and OKex. 

Alternatively, participants can stake their KSM through decentralized options such as Bounce Decentralized Auction Protocol, MathWallet, FearlessWallet and Polkadot.js.

It remains to be seen whether Polkadot and Kusama will create a new standard for participants to join cryptonetworks going forward. It is clear, however, that the community is excited to support the new ecosystem through the upcoming auctions and beyond.


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Dhruv Bansal On Societal Organization Systems And Bitcoin

This interview with Dhruv Bansal was conducted by myself in an effort to obtain valuable insight into a rather visionary Bitcoiners mind, and I believe my mission was accomplished. Bansal’s answers are profound and thought-provoking, giving us a glimpse into his thoughts on Bitcoin at large. Be sure to check out his talk at Bitcoin 2021 here after reading the edited transcript of our interview below.

Casey Carrillo: Hi everyone, I have here Dhruv Bansal, co-founder and CSO at Unchained Capital.

I was lucky enough to have an email Q and A with Mr. Bansal, and we agreed to sit down here at Bitcoin 2021, where I’ve had the pleasure to finally meet him in person. First of all, welcome to Bitcoin 2021, and I hope you are enjoying your time here.

Dhruv Bansal: Thanks Casey, it looks like I’m going to be a little overwhelmed, it looks like a huge conference.

Carrillo: Absolutely. So, jumping right in: in your previous article you mentioned that you’re excited to see the Bitcoin-inspired discoveries other scientists make within their respective fields. What, in your opinion, gives Bitcoin this capacity to inspire different ways of thinking about things?

Bansal: I think anytime humanity discovers a new principle of organization, governance, construction or material science, it affects everything. I think that’s true for ideas of evolution and for ideas of computation. I think we’re seeing that with Bitcoin. Bitcoin is interdisciplinary. One of the things it does is that it distributes decision-making, order matching, reality and truth in a way that we’ve never seen happen before, which gives Bitcoin a lot of its strength and resilience and is what makes it unique. I would love to see scientists and researchers of all stripes apply those kinds of thoughts and methods to other kinds of systems. My talk with Ryan is attempting to apply some of this thinking to things like the internet, other networks and civilization. But I think Bitcoin can go beyond that: it can teach us how to deal with systems that don’t have any definite state in a given moment in time but that eventually become consistent. We know this from databases quite intimately, but to see it not only affect a database in an esoteric programming context but to see normal people talking about notions of forks and eventual consistency is really powerful. I love to see that learning wash over humanity as a whole and allow us to be more informed of the trade-offs and rules of distributed systems.

Carrillo: I find your business, Unchained Capital, extremely interesting. What is your personal interpretation of the macroeconomic conditions surrounding the surge in bitcoins price, and do you believe the conditions we’re in currently are set to continue?

Bansal: That’s an interesting question—and I’m certainly not an economist or anybody you should look to for macroeconomic commentary—but what I’ll mention is that like a lot of Bitcoiners I expected the price to increase in 2021 tremendously. Why? History, stock-to-flow, four-year cycles. It feels a little bit silly to say that just because it happened four years ago it’s going to happen again, but I have admitted to myself that that’s kind of what I believe. And here we are: it’s happening again and it’s been happening. Now, truthfully, it’s not happening merely because it’s four years from the last time. It’s happening for real reasons. Most people who are buying bitcoin probably don’t care that four years ago was the halvening or that last year we had a halvening. It’s so curious to me, believing that the price would increase, to watch things like the COVID pandemic happen, to watch things like money printing go crazy over the last year, and to watch people pay attention to that and connect it to bitcoin. And lo and behold, the price started to increase. And as much as I expected it would, I was still shocked to understand why it did. Obviously nobody expected the COVID pandemic. There are probably other reasons too, which if I was more of a macroeconomic thinker I would be able to draw out. To me that’s been the most interesting part of this whole process, knowing that it would happen but not really knowing why and then seeing the why and understanding thesense behind why it happened.

Carrillo: Going off that, I suppose it may be believed that these conditions drive the price in the short term. Are you of the personal belief that in the long term these things are irrelevant to bitcoin and we’re experiencing a sort of water flowing down a mountain, a sort of inevitability?

Bansal: I think that’s a nice way to put it. I mean yes, this is something Ryan and I were talking about: Bitcoin has already won. And I’m not saying there’s no risk or no concern and we should all just be chill and not try to work hard to make this asset class better, richer, stronger and more robust. We should be doing those things. But essentially I believe it’s already won. That, in your words, it’s kind of like we’re just going to be going downhill in the next fifty years as Bitcoin takes over every aspect of society and affects it in some meaningful way. Nevertheless, even water going downhill has to contend with things in its way like obstacles, boulders, whatever you like. And there are a lot of those. So I think when we see the price retrace by 50%, that affects my business very strongly, it affects so many people here [Bitcoin 2021], and so when I see that happen I kinda think “well, we’re still just rolling down hill, aren’t we?” Like, we’ll be right back at $60,000 in a couple months, we’ll maybe cross $100,000 after that. I still tend to be extremely optimistic. Of course I could be wrong and it won’t work out this way, but hopefully it continues to do, on the largest scale, the thing I think it’s going to do, which is increase in price tremendously over the next few decades.

Carrillo: Having conducted this interview at Bitcoin 2021, I want to ask you what you’re most looking forward to at the conference.

Bansal: Oh that’s an easy answer. There are so many people here that part of me is worried that, while walking through the conference and all the events, there’s gonna be so much noise and chaos. But the excitement is that there are so many people here, so many of my friends and colleagues, people I’ve been reading the last few years and admiring from a distance. And I’m getting to meet them, have drinks, go on walks with them. You know, the chance to really dig in and have that kind of conversation you can only have in person is what’s so great about conferences in general, and in particular that’s what’s going to be so great about this one for me.

I really appreciate Mr. Bansal taking the time to answer my questions at Bitcoin 2021. Thanks for reading, and be sure to check out his talk at the conference on YouTube.


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Bitcoin price hits stock-to-flow rebound level not seen since 2017 all-time high

Bitcoin (BTC) spending over three weeks in the $30,000 range is proving a crucial test for one of its best-known price models.

As noted by Philip Swift, co-founder of trading suite Decentrader on June 11, Bitcoin is issuing a major challenge to the stock-to-flow price forecasting tool.

Is it bounceback time for BTC price?

BTC price action has hovered in a lower corridor between $30,000 and $40,000 since mid-May. This has worried day traders, while vintage bulls have called for calm and a long-term mindset.

As Cointelegraph reported, the stock-to-flow model continues to accommodate such behavior, even if its estimates call for a BTC/USD value closer to $70,000.

Its creator, PlanB, has nonetheless voiced concern over the future. Should current levels remain for a longer period, his model risks becoming invalidated for the first time in its history.

Highlighting spot price divergence from the stock-to-flow average, Swift explained that such instances have in fact occurred before. Each time, Bitcoin bounced off a given price point relative to the stock-to-flow average to eventually hit new all-time highs.

“It’s a long time since price has been this far below S2F line,” he told Twitter followers.

“Divergence oscillator at bottom of the chart is highlighted by the orange dotted line and arrows to show comparable historical periods. Bitcoin price rebounded hard from such divergence previously.”

Bitcoin stock-to-flow model with divergence extremes highlighted. Source: Philip Swift/ Twitter

PlanB eyes moving averages

Previously, PlanB suggested that this year’s Bitcoin bull cycle is more reminiscent of 2013 than 2017 thanks to the veracity of May’s price dip.

Both 2013 and 2017 ultimately saw a two-tier run to an all-time high. The first peak was followed by a significant drawdown in each instance, which then reversed to spawn a run to a new top.

PlanB still believes that $100,000 per Bitcoin will appear this year, while stock-to-flow calls for either a $100,000 or $288,000 average price between now and 2024.

Related: Bitcoin drops below $36K as century-old financial model predicts big BTC crash

Earlier this week, he referenced two key day moving averages (DMAs) as a potential launchpad for a recovery in the coming months.

“If June close will be $54K (or higher) and July, August also $54K (or higher), then 50DMA will bounce off 200DMA and stay above 200DMA,” he tweeted.

“So a nice short squeeze and V-shaped bounce back to $54K (+69%) would result in then bounce back scenario.”

BTC/USD 200-day, 50-day moving average, relative strength index (RSI) and months to halving. Source: PlanB/ Twitter