KR1 PLC (LON:KR1) said it has participated in a crowdloan for Karura, a scalable Ethereum virtual machine (EVM) blockchain network and will also be taking part in a parachain auction for Kusama, a Polkadot-based blockchain network.
The digital asset investor said it contributed 10,000 Kusama tokens, equivalent to around US$4.17mln, to the Karura crowdloan, which it said will be time-locked on the Kusama blockchain for 48 weeks and will be returned to the company following the completion of the respective Karura parachain lease.
Upon a successful Karura parachain auction bid, KR1 said it will receive a to-be-determined amount of Karura (KAR) tokens in return for supporting the Karura crowdloan campaign.
In addition, the company will also receive a yet-to-be-determined amount of KAR tokens in line with KR1’s previous backing of a seed funding round and strategic funding round for decentralised finance (DeFi) hub platform Acala.
KR1 said this method of token distribution involves no direct investment of capital and is instead an indirect investment where the opportunity costs are the inaccessibility of the locked KSM funds as well as foregoing any staking yields on the contributed KSM for the time period.
“The crowdloans kick-off and initiation of parachain auctions are a historic milestone for Kusama, Polkadot and the wider ecosystem. While delivering bleeding edge technology, the Polkadot and parachain teams are also continuing to innovate in token distribution mechanisms, which will prove to be hugely beneficial for the blockchain community”, KR1 managing director and co-founder George McDonaugh said in a statement.
“This participation shows our strength of conviction with Bette, Ruitao and the whole Acala team to execute on the vision of Karura. Karura is set to become the primary DeFi hub for the Kusama ecosystem, creating a new platform for innovation and limitless potential for new cross-chain decentralised financial services. This could be the big bang event for cross-chain DeFi”, added fellow MD and co-founder Keld van Schreven.
Shares in KR1 were trading at around 136p in late afternoon deals on the Aquis Exchange.