Kusama's scalable multi-chain architecture relies on a key innovation: parachains that connect to the network by leasing a slot on the relay chain through permissionless auctions. As Polkadot’s canary network, Kusama will host parachain auctions first to test and optimize the process. Parachains are expected to be introduced gradually to ensure a smooth rollout—though a little chaos is always part of the Kusama spirit!
How Parachain Slot Auctions Work
Parachain slot auctions on Kusama use a modified candle auction format. In this type of auction, the exact end time is unknown, which helps prevent last-minute bidding wars and encourages more accurate price discovery for slot leases.
Some teams may use Kusama’s built-in crowdloan mechanism to gather support. This allows users to voluntarily lock their KSM tokens for the duration of the lease period to help a project win a slot. Teams can design their crowdloan campaigns as they see fit—rewarding supporters with tokens, perks, or other incentives—and may host them on Kusama or third-party platforms.
A typical crowdloan process on Kusama involves:
- The team creates a crowdloan campaign, setting a maximum funding goal and an end date.
- Supporters initiate a special type of transaction that locks their KSM using a campaign index—not by sending tokens to an external address.
- Contributions are accepted until the campaign reaches its goal or the auction is won.
- If the campaign succeeds, all locked KSM remains locked for the entire lease period, and the parachain is deployed.
- If the campaign fails, locked KSM is returned to contributors.
How to Participate Safely and Avoid Scams
Scams are an unfortunate reality in the blockchain space. Fake crowdloan campaigns can be particularly tempting for fraudsters. Always stay vigilant to protect yourself and your assets.
Here are some essential safety tips:
- Never share your seed phrase or account password.
- Be aware that scammers can easily impersonate others online.
- When participating in a native Kusama crowdloan, never send KSM to an external address. Legitimate native crowdloans use a special transaction type that locks funds via a campaign index.
- If you’re participating in a non-native crowdloan (e.g., via an exchange or third party), verify all details through the team’s official channels.
Remember: if you are scammed, there is usually no way to recover your funds.
👉 Learn how to participate in crowdloans safely
Frequently Asked Questions
About Parachains
How many parachain slots are available on Kusama?
The initial goal is around 100 parachain slots on Kusama, though this number may evolve over time with optimizations or secondary relay chains. Not all slots will be allocated via auction—some may be assigned to system-level chains or parathreads through governance.
When will parathreads be available?
Parathreads are expected to go live a few months after parachains are operational. This upgrade will require approval via on-chain governance.
Leases and Auctions
What happens to KSM locked during the lease period?
KSM locked during a parachain lease remains reserved in the account or crowdloan index and cannot be used for staking or transfers. After the lease ends, anyone can trigger the unlock process.
How much does it cost to lease a slot?
The cost is determined by market demand. Since the bonded KSM is returned after the lease, the main cost is the opportunity cost of not staking those tokens during the lease period.
What if a team doesn’t win an auction?
The team can participate in future auctions or choose to connect as a parathread once that functionality is live. Crowdloan campaigns can be configured to extend across multiple auctions.
What happens when a parachain lease ends?
The slot returns to the pool for re-auction. The team can bid again to retain it or transition to operating as a parathread.
How can I track auction status in real-time?
Users can monitor live auctions via Polkadot.js apps. Third-party platforms may also offer tracking tools—always do your own research before using them.
Are there other ways to acquire a parachain slot?
Yes. Some slots may be allocated via governance to public good parachains—chains that benefit the entire ecosystem, such as bridges to other blockchains.
Crowdloans
What is a parachain slot crowdloan, and how can I participate?
Crowdloans let users support projects by locking KSM for the lease period. You must have transferable KSM (not locked in staking) to participate. Each team sets its own participation process.
What are the benefits of participating in a crowdloan?
Some teams offer rewards—such as native tokens or exclusive access—to supporters. Reward structures vary by project.
What does “native on Kusama” crowdloan mean?
A native crowdloan uses Kusama’s built-in crowdloan mechanism without third-party intermediaries. You should never send KSM to an external address to participate in a native crowdloan.
Why do crowdloan campaigns have contribution caps?
Caps help teams manage reward distribution—for example, by limiting how much of their native token they pledge per KSM contributed.
Kusama’s parachain slot auctions represent a major milestone in decentralized network evolution. Whether you’re a builder or a supporter, understanding the auction mechanics and participating safely can help you make the most of this innovative ecosystem.