Kusama (KSM): token and blockchain network overview, price, rate chart, how to buy and store KSM

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Kusama is the first parachain in the Polkadot network, a kind of “proving ground”. Kusama received some functions even earlier than Polkadot (participation in the auction of slots, composite applications), and this parachain also has a higher speed of work. It provides an environment for developers to test and debug projects before deploying them to Polkadot. However, some projects prefer to stay on Kusama, considering this parachain quite suitable for themselves.

KSM is a native Kusama token designed for staking and participating in auctions when renting slots that host parachains. It is possible to pay for the rent of the slot by users on the basis of crowdfunding (this option is called crowdloan). You can buy a KSM token on the Binance exchange, where it is traded in pairs with BUSD, BTC, BNB, USDT.

Btcnewsweb.com editors prepared an overview of the project and its key functions.

KSM token price to USD

Name Price Market Cap Change % (7D)
$36.70
$354,199,680.46
+0.14%

KSM to USD chart

General information

NameKusama
TickerKSM
BlockchainKusama / Polkadot
Launch year2019
Reviewerhttps://polkascan.io/pre/kusama-cc3, 
https://kusama.polkastats.io/
Current issue as of 18.04.218 980 098 KSM
Maximum emission10 000 000 KSM
Course on 18.04.21 408,68 $
Capitalization on 18.04.21 3 674 924 345 $
Official sitehttps://kusama.network/
Sourcehttps://github.com/paritytech/polkadot/
Bloghttps://medium.com/polkadot-network/kusama-network-7446706b8f4c
Documentation https://guide.kusama.network/docs/en/kusama-index
Social networkshttps://twitter.com/kusamanetwork, 
https://forum.kusama.network/, 
https://discord.gg/9AWjTf8wSk; 
https://www.youtube.com/channel/UCq4MRrQhdoIR0b44GxcCPxw
ExchangesBinance, Huobi, OKEx, Kraken, Gate.io, KuCoin and others

Technical features

Kusama is called the “canary” chain of Polkadot – by analogy with how canaries were brought into the mines in cages, and if a canary died, then this indicated methane or carbon monoxide in the air, and people had to urgently leave. On Kusama, developers can build and deploy parachains, try various management functions, validation and other aspects in a real workable environment.

The chain runs on the same codebase as Polkadot, so from a developer’s point of view, the process of building apps and smart contracts is no different. At the same time, projects on Kusama develop faster, are cheaper, and if desired, they can be transferred to Polkadot at any time.

Maintaining the Kusama network involves standard user groups:

  • Nominators (select validators).
  • Validators (confirm transactions and generate blocks).
  • Collators (responsible for creating blocks on parachains containing the latest transactions).
  • Subjects of management (by voting they determine how the platform will develop further).

The main component of governance is a referendum, within the framework of which proposals are made and a vote is held on whether to introduce this or that change into the protocol. An unlimited number of changes can be made through a referendum, for example, adjusting network parameters, registering or excluding a parachain, voting on the distribution of funds from the general treasury, etc.

How auctions work on the Kusama network

To launch your project on Kusama, you need to rent a slot on the blockchain. The right to rent is obtained by participating in an auction.

The parachain startup process is as follows:

  1. Development of the parachute and its placement on the initial layer.
  2. Local testing and optimization.
  3. The choice of strategy for the auction.
  4. Joining the auction, placing bids.
  5. After the start of the allotted lease term – deployment of the parachain on the purchased slot.

Once the lease has expired, it is necessary to participate in a new auction to renew the right to support the parachain on Kusama.

During the auction, the team places bids, choosing at least one six-week rental period, as well as the amount in KSM tokens that they are ready to block for the selected period. Other teams see bids and can raise them throughout the entire trading time. The winner at the close of the auction automatically receives the rental right. The amount declared by him in KSM is blocked for the lease term, then returned.

What are crowdloans

Kusama’s built-in crowdloan mechanism allows third-party users to contribute to KSM by blocking it for the duration of the lease. In return, teams can, at their discretion, reward users and organize a crowdloan in various ways (either on Kusama or on some third-party site).

Approximate procedure for conducting a crowdloan:

  1. Campaign creation – setting the number of allowed contributions, start and end dates. Also, the project needs to notify its community about the campaign so that those who wish can take part.
  2. Initiation of a special smart contract where participants will send KSM.
  3. Depositing funds throughout the campaign period, subject to a set maximum.
  4. If the team wins the auction, then the KSM will remain locked for the entire lease term, and the chain will automatically start.
  5. If the team does not win, all contributed KSMs are unlocked immediately after the end of the campaign.

You need to be careful about crowdloan campaigns that you may encounter on the network. These can be tricks of scammers. In particular, you cannot transfer KSM to any address, since the crowdloan is arranged differently, here deposits are made using a special transaction in Kusama. Fraudsters can impersonate the official representatives of the project. If in doubt, then contact real representatives at the contacts listed on the official website of the project you are interested in.

Kusama Token (KSM)

KSM plays many important roles in the Kusama ecosystem:

  • Used by nominators who delegate their KSM to validators, thereby performing a passive investment function.
  • Allows validators to launch a node and earn approximately 7.5% per annum (dynamic amount).
  • Serves as a reward for people who find bugs and bugs in the code.
  • Serves as a reward for projects that can add value to the entire network as a whole.
  • Allows you to participate in decision-making on the development of the protocol.

In addition, KSM allows you to add accounts to ENS (Ethereum Name Service), a smart contract system on the Ethereum blockchain that allows users to declare their own domain names.

Where to buy and store Kusama (KSM)

The coin is present on the main popular cryptocurrency exchanges:

Wallets suitable for storing Kusama:

Lunie wallet for storing and staking Kusama (KSM)

Conclusion

Kusama (KSM) is a potentially useful project for all developers wishing to join the Polkadot blockchain. This is an effective testing ground, in which you need to win an auction, and you can involve the user community in the process. Decentralized governance, opportunities for staking and delegating assets, rapid development and innovation are the reasons why many developers choose not to switch to Polkadot, but to stay on Kusama. Both protocols today have powerful potential for growth and development.

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