Parachains are being deployed!

$KSM Road to $5k-$10k begins today

TL;DR

There is barely any $KSM tokens available - explosive move start now.

Thread/

1/ Gavin Wood expects to have around 100 parachains connected to Kusama Relay chain. Around 30 of them in 2021.

Each project will have to win a candle auction to secure a parachain slot for max 48 weeks.

2/ How to win an auction?

Projects will bid $KSM tokens and the winner will be revealed after the candle auction is over.

But where will they get $KSM tokens to bid on in the first place?

From the MARKET!

3/ A project basically has two options:

1. Buy as much $KSM from the market itself and use it for bidding

2. Run a crowdfund campaign where they will lurk market participants like me and you to lend our precious $KSM tokens to them in return for some proposed incentives

4/ Some projects will be buying and are buying now through this whole little correction.

One example is $KYL that revealed that they already bought 200k $DOT for the auction on Polkadot. Polkadot parachain auctions are at least months ago..

5/ Meaning projects that are planning to win KUSAMA auctions have been buying and will continue to do so, as the list of projects that will be building on Kusama is growing every week.

6/ But other projects will not have funds to buy tens of millions of USD worth of KUSAMA potentially required to win a parachain auction. Therefore, they will run a crowdfund campaign like the one recently announced by $PHA network: https://medium.com/phala-network/phalas-kusama-slot-auction-strategy-34cb93e07f3a

7/ $PHA is offering 100 PHA (worth $88 at the time of writing) for each $KSM token lent to them for a 48 week parachain lease lock up. The team has allocated 15M $PHA tokens as rewards meaning they are thinking that they may need 150K (!!!!!) $KSM to win an auction.

8/ I repeat 150k $KSM - 1.5% of all KUSAMA supply which is 10M!

$PHA alone is positioning themselves to potentially remove over a hundred k of KSM from the market for 48 weeks.

And it's just one project!

/9 We are yet to find out how much millions of USD of Kusama we can expect to be a winning bid. But $PHA example alone proves that we are about to witness Hunger Games for $KSM

10/ Currently 52% of all $KSM is being staked with a 7-day unbonding period, that earns 14.8% APR. It's a pretty good incentive alone to buy and hold $KSM. But that also means there is less than 4M $KSM in the current circulating supply for projects to buy and bid in the auctions

10/ So some projects are currently buying from the market, some projects are planning the crowdfunding campaigns how to make you and me to lend $KSM to them.

And some of us are buying $KSM to either make 14.8% APR or participate in upcoming crowdfunding campaigns.

11/ We are expecting 30 parachains connected to the KUSAMA network in 2021. That means we will yet to see around 30 auctions this year alone, roughly every week.

Safe to assume at least 3 projects will participate in each auction with a goal to win a parachain eventually

12/ That means around 100 projects alone are thinking how to accumulate $KSM this year alone

Of course this will lead to $KSM price surge and most projects will choose to do the crowdfunding.

13/ The winner of the auction will lock their $KSM for 48 weeks.

But what happens to crowdfunded $KSM if a projects does not win an auction?

They KEEP it until they win! Meaning not only the winner locks $KSM. But the tokens collected across all auctions participants are held

14/ The projects will announce a period of time in which they are planning to hold your $KSM and win an auction. If in that time they do not win, they will return your $KSM back to you.

So tens of projects will be holding probably 1M+ $KSM for months until they win the auctions

15/ To sum up.. How can you expect the team to win an auction if there are barely any $KSM tokens left in the market.. This sort of tokenomics is an unprecented case in crypto history and puts an unlimited upside for $KSM

Let the HUNGER GAMES begin!