Plasm Releases Shiden's Kusama Auction Strategy
Shiden Network
Shiden Network is a multi-chain decentralized application layer on Kusama Network. The Kusama relay chain does not support smart contract functions in design, but Kusama Network requires a smart contract layer. This is where Shiden Network comes in. Shiden supports Ethereum Virtual Machine, WebAssembly and Layer2 solutions from the beginning. The platform supports various applications such as DeFi, NFT, etc.
Kusama Parachain Slot Bidding Strategy
Shiden Network is one of the Kusama parachain candidates (2021-05-14). Parachains connect to the Relay Chain through a permissionless auction to lease slots. In other words, we need to win the slot auction in order to rent a parachain slot. After the lease period starts, we deploy the mainnet on the acquired slots.
In order to collect KSM tokens as quickly as possible, we chose to use Kusama's crowdlending mechanism for crowdlending slot rentals, allowing KSM holders to support Shiden by locking up KSM tokens for 11 months. We will reward their contributions by providing SDN tokens.
PLO consists of crowdlending and auctions. We will be crowdfunding ahead of the auction. We strongly encourage KSM holders to participate in PLO and join our crowdlending as soon as possible. The collected KSM will be used for parachain auctions.
After 11 months, KSM tokens will be returned. Therefore, this is neither an ICO nor a direct investment. This is a "staking".
We use 22% of the total supply (9,900,000 SDN) to bid for epochs 1-8 (7 days x 6 weeks x 8 slots = 336 days). Shiden is a community driven project and we distribute a total of 65% of the tokens to community members.
20% of the total supply will be distributed according to the following regulations. 2% of the 22% goes to bonuses (to be announced soon). Please note: Only those who participate in crowdlending will have additional bonuses. If you participate in our auctions directly, you will not receive the bonus.
After locking up KSM tokens, slot auction participants will automatically receive SDN tokens. Receiving Tokens will be calculated by the formula in the Advanced Information section below. Tokens will be locked for one month and released linearly over the next ten months. During the linear release period, token holders can stake SDN tokens to the network so that they can earn staking rewards. (Remember, SDN tokens will be delivered within 1 month of winning the auction, tokens will be distributed immediately)
Additionally, we have introduced a new incentive scheme that suggests joining our crowdlending early on when we start bidding, rather than participating in later auctions. The earlier you participate, the higher your bonus rate will be.
6 (Highest Bonus Rate): Participants who joined the crowdloan from the start of our crowdloan to day 2 of the auction will receive this bonus rate.
5 (Second Highest Bonus Rate): This bonus rate is available to participants who join our crowdlending from the 3rd day of the auction until the start of the second auction.
4 (Third Highest Bonus Rate): Participants who join our crowdlending from the second auction until the start of the third auction will receive this bonus rate.
Please note: Only participating in crowd lending will have additional rewards. If you participate in our auctions directly, you will not receive the bonus.
Although the picture above includes several auctions, if Shiden Networks wins the N-1th auction, we will not join the Nth auction.
After the Web3 Foundation announces the auction date, we will officially start the crowdfunding campaign.
advanced information
Shiden Network is a branch of Plasm Network. We use block #3,000,000 (2021-05-05 04:43:30+UTC) for the snapshot. (Some parameters have been adjusted.)
The number of SDN tokens you can acquire is calculated by the following formula.
C_i : Bonus earned by donating to Crowdloan before auction i starts. KSM_i,j : KSM in the jth contribution before the ith auction starts. SDN_i,j : SDN that can be obtained from the j-th contribution before the i-th auction starts. n : The number of Kusama parachain auctions held before the Shiden Network won the auction. m_i: the number of donations before the i-th auction
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Original link:https://docs.plasmnet.io/learn/parachain-lease-offering/shiden-parachain-auction-strategy
Translation: PolkaWorld, the first Chinese community of Polkadot
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