Karura’s Community Backed Parachain Launch in Kusama

Overview of Polkadot and Kusama

At its core Polkadot is a network of networks connecting several use case specific customized blockchain (parachains) built with a framework called substrate. Polkadot aims to create a big ecosystem of interconnected blockchains which inherit Polkadot’s relay chain network security. In fact, plug and play security is an interesting and kind of underrated aspect of Polkadot. Parachain development teams don’t have to actually go out and recruit a whole set of tens or hundreds of validators to secure the network. By doing a parachain auction and actually connecting to polkadot’s network, the parachain will automatically benefit from the security offered by Polkadot validators.

Overview of Acala /Karura

Unlike most projects that are not built with specialization in mind; Polkadot and Kusama ecosystems allow the deployment of not only highly customizable but also specialized parachains that serve one particular domain or a particular use case. This is the case for Karura and Acala that are going to be respectively launched as defi hubs and stable coin platforms on Kusama and Polkadot networks.

Karura launch process

Once Kusama enables the auction process (crowdloan module) development teams can start competing for a slot to launch their parachain. The Crowdloan module is run on-chain for a period of time before the parachain auction happens.

Karura Auction Economics

  • 100M total supply - fixed and deflationary.
  • Assuming 12 month lease period (TBD) at least 12 KAR per KSM
  • 30% of the paradrop reward from the crowdloan will be immediately liquid and will be transferable on launch. The rest of the reward will be vested throughout the lease period and going to be released gradually.