Kusama is one of the most popular Poka ecological projects. It comes from the same foundation as Poka. The interesting thing about Kusama is that it is not just a test network. It features its own KSM currency and provides users with the option to explore new functions that may occur in Poka. So, what exactly is KSM coin? What are its future prospects? Next, let's have a look.
What is KSM coin?
KSM coin is a kind of crypto digital currency with full English name of Kusama and total supply of 8058000
Kusama is Poka's canary network, an early, unaudited version of Poka. Kusama provides a way to approach the real environment to detect the wave card network in advance to ensure the security of the wave card network. It can also enable future Poka networks to participate in early exercises, such as verifier nodes, parallel chain teams, and builders of Poka ecological tools can use Kusama to prepare in advance.
Kusama will be used as a testing ground to allow teams and developers to build and deploy parallel chains, or to try the governance, mortgage, nomination and verification functions of Poka in specific environments, and also to provide security alerts for developers. Kusama is not a "test network". This is an early and highly experimental version of Poka, presenting the real economic situation. The cell will have the network completely - this means that switching is strictly prohibited without centralization. As long as the community maintains it, Kusama will exist. Kusama may serve new, early performance and projects to be developed and deployed on Poka.
Kusama provides a way to approach the real environment to detect the wave card network in advance to ensure the security of the wave card network. It can also enable future Poka network participants to exercise in advance. For example, verifier nodes, parallel chain teams, and builders of Poka ecological tools can use Kusama to prepare in advance.
Advantages of Kusama:
First, it brings about a fast iterative process and allows developers to explore new technologies and ideas that may have a significant impact on the market.
Secondly, it allows developers who plan to deploy some applications on the Polkadot network and the Peace Chain to predict the innovative performance, which can be inferred from their experience in Kusama, which provides a testing period for them.
What is the future of KSM coin?
Kusama is called the low value version of Polkadot, but it plays an important role in Polkadot's ecosystem. Kusama can be used as a test platform for publishing parallel chain projects on Polkadot, but it will also bring real economic benefits and effects. Therefore, obtaining Kusama parallel chain will be an important link. In order to obtain a parallel chain quota, the project must participate in the parallel chain auction. At the auction, he will submit the bid amount (based on DOT or KSM) and the required schedule (6 to 24 months). In the future, the project can also be leased or purchased from the secondary market.
Once released, in the foreseeable future, parallel chain auctions will be held approximately every two weeks. If there are nearly 100 quotas, and one quota is auctioned every two weeks, each quota must be made up for 3.8 years, and the validity of the quota is only 6 to 24 months. The reality is that the auction rate is likely to depend on the team's requirements for the number of parallel chains and the appetite of investors for crowdfunding loans. Polkadot will have the best positioning to auction parallel chains only when the demand for parallel chains increases sharply.
If the Polkadot ecosystem is successful, it will mean that more and more KSM and DOT currencies can be locked in parallel chains, while less and less currency will be in circulation. Currently, 65% of the DOT supply is locked, while 30% is in circulation. After the parallel chain is started, 40% of the DOT will be linked in the parallel chain, so the efficient circulation supply will be reduced to 15%.
Speaking of this, I believe you have a certain understanding of what KSM currency is and its future prospects. In general, Xiao Bian also reminds investors that although investing in digital currency is a very popular project at present, the currency market is volatile and unpredictable, and investment is accompanied by certain risks. You must have a comprehensive understanding before entering the venue, and do not invest blindly.
