Kusama is set to ignite the next wave of innovation in the Polkadot ecosystem with its highly anticipated parachain slot auctions. These auctions introduce a unique "crowdloan" mechanism, enabling KSM holders to contribute their tokens in support of their favorite projects. In return, participants receive generous token rewards from the winning parachains. This article provides a comprehensive overview of 11 leading Kusama parachain candidates, their token distribution strategies, and the incentives available to contributors.
With parachain slots offering critical network functionality and long-term growth potential, understanding each project’s reward structure is essential for maximizing returns. Whether you're a seasoned DeFi participant or new to blockchain staking, this guide breaks down everything you need to know—clearly and concisely.
👉 Discover how to maximize your KSM rewards during Kusama auctions
Acala (Karura) – 12+ KAR per KSM
Acala’s Kusama counterpart, Karura, issues the KAR token with a total supply of 100 million. For the auction, 11% of the total supply is allocated to crowdloan contributors.
Users lock their KSM for 48 weeks via a permissionless smart contract. Upon successful auction, each KSM contributed earns at least 12 KAR. Of this reward:
- 30% is immediately unlocked upon Karura’s launch, enabling instant use in DeFi protocols.
- The remaining 70% is linearly released over the 48-week lease period.
This balanced release encourages long-term engagement while providing early liquidity.
Plasm (Shiden Network) – Up to 22% SDN Rewards
Shiden Network, the Kusama-based parachain of Plasm, offers SDN tokens as rewards. With a total supply of 45 million SDN, 22% (9.9 million SDN) is dedicated to crowdloan participants.
Contributors must lock KSM for 11 months. The locked KSM is released linearly—starting with a one-month lock followed by ten months of gradual unlocking.
During this period, users can stake their received SDN to earn additional staking rewards, enhancing overall yield potential.
Clover (Sakura) – 200+ SKU per KSM
Sakura, Clover’s Kusama deployment, distributes SKU tokens with a total supply of 1 billion. 200 million SKU (20%) is reserved for crowdloan supporters.
Each KSM contributed earns at least 200 SKU. If Sakura wins the auction:
- 28% of rewards (56 million SKU) are unlocked immediately.
- The remaining 72% are linearly released over 12 months.
KSM is locked for the full lease duration (48 weeks). If Sakura fails to win, all KSM is safely returned.
ChainX (SherpaX) – 10 KSX per KSM
SherpaX, ChainX’s Kusama parachain, introduces KSX tokens through an Initial Airdrop Offering (IAO). Of the initial 21 million KSX:
- 80% is allocated to crowdloan rewards
- Annual inflation of 10% supports ongoing network development
Each KSM contributed earns exactly 10 KSX. Rewards are distributed via Statemint once live, using PCX snapshot and activity data for accurate allocation.
Centrifuge (Altair) – 50+ AIR per KSM
Altair, Centrifuge’s Kusama chain, issues AIR tokens with a total supply of 425 million. Contributors receive over 50 AIR per KSM, with final amounts depending on auction participation and slot price.
Reward distribution:
- 25% unlocked immediately
- Remaining 75% released linearly over the lease period
Additionally, CFG token holders receive 1:1 AIR airdrops, reinforcing cross-chain loyalty and ecosystem continuity.
Moonbeam (Moonriver) – Proportional MOVR Rewards
Moonriver, Moonbeam’s canary network, uses MOVR (10 million total supply). 3 million MOVR (30%) is set aside for crowdloan incentives.
Unlike fixed ratios, Moonriver uses a proportional model: contributors receive rewards based on their share of total contributions.
For example:
- Contribute 100 KSM
- Total raised: 10,000 KSM
- Your share: 1%
- You receive 30,000 MOVR (1% of 3 million)
Of these rewards:
- 30% are immediately available
- 70% are linearly released over 48 weeks
This model rewards both large and small contributors fairly.
👉 Learn how proportional reward models boost participation in blockchain auctions
Phala (Khala) – Fixed 100 PHA per KSM
Khala Network, Phala’s Kusama deployment, uses K-PHA as its native token—fully interchangeable with ERC-20 PHA and mainnet PHA.
The reward structure is simple:
- 100 PHA per 1 KSM contributed
- Reward pool capped at 15 million PHA
- Once Khala reaches 150,000 KSM in support, no further rewards are issued
This fixed ratio ensures predictability, while the cap prevents excessive dilution.
Crust (Crust Shadow) – Dual CRU + CSM Rewards
Crust Shadow, Crust’s Kusama testnet, offers a unique dual-token incentive:
- Contributors receive both CRU and CSM tokens, regardless of auction success
Upon success:
- 30% of lease-period rewards released immediately
- 10% released per lease period thereafter
CRU tokens can be staked with validators or candidates, generating additional staking yields—an excellent opportunity for passive income seekers.
Bifrost (vsKSM) – Liquidity + BNC Rewards
Bifrost introduces vsKSM, a liquid staking derivative. By contributing KSM to Bifrost’s crowdloan:
- You receive vsKSM, maintaining liquidity
- Earn at least 10 BNC per KSM
This dual benefit allows users to participate in auctions without locking capital—ideal for active traders and DeFi users who want exposure without sacrificing flexibility.
Darwinia (Crab Network) – Daily CRING Rewards
Crab Network, Darwinia’s Kusama parachain, offers a novel reward system: daily CRING payouts during the crowdloan period.
Each KSM earns:
- 25 CRING per day
- Equivalent to ~15% APY
- No lock-up on CRING; all tokens distributed at campaign end
Crab targets an 8-period lease (48 weeks), ensuring network stability post-launch.
Equilibrium (Genshiro) – Up to 30% APY on GENS
Genshiro, Equilibrium’s Kusama canary, competes for eight 6-week lease periods. Contributors lock KSM and receive GENS tokens as rewards.
Key details:
- Total supply: 1.2 billion GENS
- 240 million GENS (20%) allocated to PLO (Parachain Lottery Offering)
- Potential returns: up to 30% annual yield
This high-yield model attracts yield-focused investors while supporting network decentralization.
Frequently Asked Questions
Q: How long will my KSM be locked during a crowdloan?
A: Most projects lock KSM for the full lease period—typically 48 weeks (about 11 months). If the project fails to win, your KSM is returned immediately.
Q: Are crowdloan rewards guaranteed?
A: Rewards are only distributed if the project wins the auction. However, your KSM is always returned if the bid fails.
Q: Can I use my tokens while they’re locked?
A: Normally no—but projects like Bifrost issue liquid derivatives (e.g., vsKSM), allowing you to use them in DeFi while still supporting the auction.
Q: How are rewards distributed?
A: Most projects use a mix of immediate and linear releases. For example, 30% may be available at launch, with the rest released weekly over 48 weeks.
Q: What happens if I miss the auction?
A: Once the slot is secured, there’s no way to join later for that lease period. Participation is time-sensitive.
Q: Can I support multiple parachains?
A: Yes—but since each contribution locks your KSM, you must manage your allocation carefully across campaigns.
👉 Start preparing your KSM for the next big parachain opportunity
By understanding each project's incentive model, lock-up terms, and token utility, you can make informed decisions that align with your investment goals. As Kusama continues to evolve as a testing ground for Polkadot innovations, these auctions represent not just financial opportunities—but a chance to shape the future of decentralized networks.