KR1 contributed 5,000 KSM (cryptocurrency tokens) to the Moonriver crowdloan campaign, successfully securing the second parachain slot in the previous round of Kusama parachain auctions.
According to the Polkadot wiki, a parachain slot is a scarce resource on the Polkadot cryptocurrency network and only a limited number will be available.
Parachain slot auctions take advantage of Polkadot and Kusama’s ability to provide developers with ways to create new crypto assets.
Moonriver is a community-led Ethereum-compatible smart contracts platform on Kusama, acting as a permanently incentivised canary network of the Moonbeam project; a canary network is a stand-alone network whose primary function is to serve as a testing network (i.e. be the “canary in the coal mine”).
Subsequent to the successful Moonriver parachain auction bid, KR1 received an initial unlocked tranche of 19,666.35 MOVR (the Moonriver cryptocurrency) and is expecting to gradually receive a further estimated 45,888.15 MOVR over a period of 48 weeks.
The contributed KSM are time-locked on the Kusama blockchain for a period of 48 weeks and will be returned to the company following the completion of the respective Moonriver parachain lease. This method of token distribution involves no direct investment of capital, instead, it is an indirect investment, with the opportunity costs being the inaccessibility of the locked KSM funds, as well as, foregoing any staking yields on the contributed KSM for the time period, KR1 said.
The company has already realised a part of its initial tranche of received Moonriver tokens, having sold a total of 15,643.19 MOVR and, in turn, having purchased a total of 5,162.25 KSM with the entire proceeds from this sale.
“It is fantastic to see the excitement within the Kusama community for Moonriver, as well as the many other extremely well-coordinated launches of technically sophisticated parachains. Moonriver and the entire team have our full support and we are looking forward to developers taking advantage of Moonriver’s Ethereum-like environment that is fully compatible with existing tools and protocols,2 said George McDonaugh, the managing director and co-founder of KR1.
“Considering the exceptional traction of MOVR in the secondary markets, we had to find a balance as a company and could not pass on the opportunity to realise some profits on our contributed KSM. This partial exit allows us to be an even more active participant in further upcoming parachain auctions and is also strengthening our staking activities going forward,” he added.