The sixth parachain slot auction on Kusama has officially launched, marking another milestone in the network’s decentralized evolution. As a member of the Kusama Council, PolkaWorld participated in voting for Motion 346, which initiated this highly anticipated auction cycle. This event offers projects the chance to secure a coveted parachain slot through community-powered crowdloans — a core mechanism driving Kusama’s governance and innovation ecosystem.
Auction Timeline and Mechanics
Understanding the timeline is crucial for participants and observers alike:
- Bidding Period: 27,000 blocks (~45 hours)
- Candle End Period: 5 days of random termination (candle-style auction)
- Winner Selection Window: Final 3 hours after the candle period ends
- Lease Start: Slot 15, beginning September 3
During the bidding phase, all projects with active crowdloans automatically place bids equal to their total contributed KSM. The highest bidder at any given time appears as the frontrunner on platforms like polkadot.js.org, though the final winner isn’t confirmed until the random candle end.
As of publication, 16 projects have launched crowdloan campaigns on Kusama. The top five in terms of KSM raised are:
- KILT Protocol
- Calamari (Manta Network’s canary chain)
- Basilisk (HydraDX’s LBP-focused parachain)
- Heiko (Parallel Finance’s Kusama counterpart)
- Altair (Centrifuge’s Kusama-based DeFi chain)
Let’s explore each project’s offering, incentive structure, and strategic approach to this competitive auction.
Top Projects in the Kusama Auction
🔹 KILT Protocol: Identity Reimagined
KSM Raised: 208,175
Crowdloan Cap: 220,000 KSM
Reward Pool: 4.5 million KILT tokens
KILT Protocol is building a self-sovereign identity solution where users control their digital credentials. Their crowdloan rewards are governed by KILT’s decentralized community, ensuring fair distribution to contributors — excluding BOTLabs, the founding entity.
👉 Discover how decentralized identity is shaping Web3’s future
With a cap of 220,000 KSM, every 1 KSM contributed earns supporters at least 25 KILT tokens if the cap is reached. If not, rewards increase proportionally. Once fully decentralized, governance will determine final allocations.
🔹 Calamari: Privacy-First DeFi from Manta Network
KSM Raised: 103,231
Crowdloan Cap: 300,000 KSM
Reward Pool: Up to 3 billion KMA (30% of total supply)
Calamari employs a unique tiered hard cap system to prevent reckless bidding wars:
- Tier 1: 100,000 KSM → 1 billion KMA distributed
- Tier 2: 200,000 KSM → 2 billion KMA distributed
- Tier 3: 300,000 KSM → Full 3 billion KMA distributed
This strategy ensures cost efficiency while maximizing user rewards.
Every 1 KSM contributed earns exactly 10,000 KMA, regardless of total contributions. Early birds also benefit:
- Top 500 contributors: +10% bonus
- Ranks 501–1000: +5% bonus
- Referral bonus: Both referrer and referee receive +2.5%
This predictable reward model encourages trust and long-term engagement.
🔹 Basilisk: The Snek Strikes Again
KSM Raised: 33,868
Crowdloan Cap: 222,222 KSM
Reward Pool: 1.5 billion BSX + up to 56.8 million HDX
Basilisk, developed by HydraDX, uses a dynamic time-based multiplier to incentivize early participation:
- Rewards peak at 1x multiplier during the first 45 hours
- Drops linearly during the 5-day candle period
- Reaches 0x at the final block
For example:
Alice contributes early and gets full BSX rewards. If she waits until day 4, her payout could be cut by half.
Additionally, contributors receive HDX tokens as compensation for opportunity cost — ranging from 5% to 30%, depending on Basilisk’s ranking during the auction. The higher the competition pressure, the greater the HDX rebate.
Tokens are released linearly over time, starting two weeks after winning the slot and ending one week before lease expiration.
🔹 Heiko: Parallel Finance’s Gateway to Kusama
KSM Raised: 32,394
Crowdloan Cap: 400,000 KSM
Reward Pool: 25 million HKO
Heiko offers a lending and yield optimization protocol tailored for Kusama’s fast-paced environment.
Reward calculation:
HKO per KSM = Total HKO Pool / Total KSM Contributed
At full cap (400,000 KSM), each KSM earns 62.5 HKO. Below cap, rewards scale upward.
Once Heiko wins a slot, HKO rewards begin a 12-month linear release, promoting long-term holder alignment and network stability.
🔹 Altair: Centrifuge’s Asset-Backed DeFi Chain
KSM Raised: 30,933
Crowdloan Cap: 200,000 KSM
Reward Pool: 400 AIR per KSM
Altair brings real-world asset financing to Kusama with transparent on-chain securitization.
Base reward: 400 AIR per 1 KSM
Boosts include:
- +10% bonus for contributions within first 48 hours
- +5% referral bonus for both parties
- Special surprise rewards for contributions over 10 KSM (TBA)
Rewards are partially vested: 25% unlocked immediately, remainder released over 48 weeks, balancing liquidity with long-term commitment.
Frequently Asked Questions (FAQ)
Q: What is a parachain slot auction on Kusama?
A: It’s a candle-style auction where blockchain projects compete for limited slots on the Kusama relay chain by gathering community support via crowdloans. Winning projects gain access to shared security and interoperability.
Q: How do crowdloans work?
A: Users lock their KSM tokens to support a project. In return, they receive native tokens from that project as rewards. Locked KSM is returned after the lease period ends (up to two years).
Q: When will I get my KSM back if I participate?
A: Your KSM remains locked for the duration of the lease (approximately two years). Afterward, it’s automatically returned to your wallet.
Q: Can I contribute to multiple crowdloans?
A: Yes, but each contribution locks the same KSM amount. You cannot double-commit — choose wisely based on reward potential and project fundamentals.
Q: What happens if my chosen project doesn’t win?
A: All contributed KSM is safely returned to participants regardless of outcome. There’s no risk of losing funds by backing a losing bid.
Q: Why does the candle auction have a random end time?
A: To prevent last-second bidding manipulation ("sniping"), the random termination window adds fairness and unpredictability, ensuring broader participation.
Why This Auction Matters for Web3
Kusama continues to serve as a high-velocity canary network for Polkadot, testing new features and economic models under real market conditions. These auctions reflect more than technical competition — they represent community trust, economic alignment, and innovation velocity.
Each participating project brings unique value:
- KILT: Decentralized identity infrastructure
- Calamari: Privacy-preserving DeFi transactions
- Basilisk: Liquidity bootstrapping mechanisms
- Heiko & Altair: Cross-chain lending and asset financing
Their success fuels ecosystem diversity and strengthens Kusama’s role as a launchpad for next-gen blockchains.
👉 Stay ahead in the race for decentralized innovation
The current frontrunner — KILT — demonstrates strong community backing, but shifts can happen rapidly during the candle period. Watch polkadot.js.org/apps for real-time updates.
Final Thoughts
Kusama’s sixth parachain auction exemplifies decentralized coordination at scale. With over a dozen projects vying for slots using creative incentive models, users have unprecedented power to shape the network’s future.
Whether you're contributing KSM or observing trends, this auction offers valuable insights into tokenomics, governance dynamics, and community-driven development.
As always, conduct due diligence before participating. Understand vesting schedules, reward structures, and project roadmaps. And remember — even if your favorite project doesn’t win this round, their journey is just beginning.
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