KSM Kusama

Kusama Use Cases

Kusama serves multiple purposes within its ecosystem:

• Network Governance: Kusama's governance is managed through a council, technical committee, and reference chamber. The most critical part is the referendum process, where KSM holders vote on proposals to amend the chain. Proposals become referendums after a 28-day launch period, and users with staked KSM can vote on these proposals. If passed, the changes are enacted 30 days later.

• Parachains and Parathreads: Kusama supports both parachains and parathreads. Parachains are standalone blockchains with custom tokenization and functionality, connected to the relay chain for throughput. Parathreads are unique parachains not constantly tethered to the relay chain. The network uses a nominated proof-of-stake (NPoS) consensus mechanism, allowing users to stake KSM by locking it in a contract to validate data and participate in consensus and voting.

• Kusama Treasury: The Kusama Treasury funds come from transaction fees, lost deposits, and other sources. KSM holders can propose expenses by depositing 5% of the proposed amount. Proposals must receive a favorable vote from at least 60% of the board to be adopted. If rejected, the deposit is forfeited; if accepted, the deposit is repaid.

• Network Maintenance: Kusama is permissionless, allowing any KSM holder to interact with its features, including governance, parachain auctions, and transfers. Network maintainers, such as collators, gather data from parachains and pass it to validators for validation. They can also engage in future network activities like consensus.

• Experimental Hub: Kusama acts as a "canary network" for Polkadot, testing new blockchain ideas and experiments before they are implemented on Polkadot. It provides developers with a live environment to test early versions of Polkadot projects, offering fast transactions, high security, and scalability.

• Token Utility: The KSM token is used for governance, staking, parachain auctions, and paying transaction fees. It can also be used for speculative investment and trading on cryptocurrency exchanges.

Pros of Kusama

• Scalability: Kusama has the potential to scale infinitely and host several applications without network congestion. This allows for fast transactions and high throughput.
• Staking Rewards: Kusama (KSM) tokens can be staked in software wallets, allowing users to earn rewards. This encourages long-term commitment to the Kusama ecosystem.
• Test Blockchain: The Kusama blockchain serves as a testing ground for projects deploying on Polkadot, enabling adjustments and refinements. This provides developers with a highly realistic testing environment for blockchain projects.
• Decentralization: The Kusama project is community-driven, prioritizing decentralization and inclusive decision-making. This includes voting rights for KSM holders and a governance system with referenda and proposals.
• Interoperability: Kusama allows for interoperability between different blockchain networks through bridges, facilitating the exchange of value and data.

Cons of Kusama

• Experimental Nature: Kusama is an experimental network, which means it can be more prone to security risks and uncertainties regarding current and future features.
• Competition: Kusama faces strong competition from other blockchain projects, which can impact its adoption and market value.
• System Complexity: The Kusama system can be complex for average users, making it less accessible to those without technical expertise.
• Dependence on Polkadot: The interest in using Kusama may drop with the release of Polkadot, as Polkadot offers a more secured, stable, and robust environment.
• Price Volatility: Kusama's token price can be highly volatile, which can make it risky for investors.

Founders of Kusama

The founders of Kusama are:

• Gavin Wood: A co-founder of Ethereum and the creator of Polkadot.
• Peter Czaban: A co-founder of Polkadot.
• Robert Habermeier: A co-founder of Polkadot.

These individuals are also associated with Parity Technologies, which developed the Substrate framework used by Kusama.

Investors in Kusama

Kusama has attracted a variety of investors across different tiers. Here are some of the notable investors:

• Tier 1 Investors: MULTICOIN CAPITAL
• Tier 2 Investors:
  • Blockchain.com Ventures
  • DCG
  • Shima Capital
  • Animoca Brands
  • Pluto
  • Magnus Capital
  • MEXC
  • Parafi Capital
  • Mechanism Capital
  • Double Peak
  • Slow Ventures
  • Rockaway Blockchain Fund
  • Republic Realm
• Tier 3 Investors:
  • Mapleblock Capital
  • X21 Digital
  • Kosmos Ventures
  • LedgerPrime
  • BTA Ventures
  • Titans Ventures
  • BBS Finance
  • CryptoDormFund
  • Wings Ventures
  • gumi Cryptos
  • Kyros Ventures
  • RR2 Capital
  • Figment Capital
• Tier 4 Investors:
  • Moonboots Capital
  • Sky Ventures
  • Incuba Alpha
  • Four Seasons Ventures
  • Bitcoin.com
  • coinIX
  • 8 Decimal Capital
• Other Investors:
  • OPW Ventures
  • WEB3 Venture Capital
  • Sub0 Capital
  • BlockVC
  • BitBlock Capital
  • Existential Capital
  • Blue Archer Trust
  • Block Hype
  • Kryptonite Capital
  • CryptoViet Ventures
  • Stakely.vc
  • In Square Ventures

These investors have contributed to various projects within the Kusama ecosystem, supporting its growth and development.

Investment Potential

Kusama is considered a promising investment due to its unique features and long-term earning potential. Here are some key points to consider:

• Blockchain Advancements: Kusama's advancements in blockchain technology, such as its robust security mechanisms and scalability, enhance its appeal to investors.
• Governance Model: The platform's governance model, which empowers token holders to participate in decision-making processes, fosters a sense of ownership and collective responsibility.
• Parachain Architecture: Kusama's parachain architecture allows projects to build customized chains with specific features and governance models, creating a vibrant ecosystem of decentralized applications and services.
• Community Support: The dedicated community and active participation in governance contribute to the platform's resilience and scalability.
• Long-term Prospects: The long-term bullish sentiment among market participants and the potential for cross-chain collaborations increase its attractiveness to investors.

Key Factors

• Innovation: Kusama's innovative approach to blockchain technology and its role as a canary network for Polkadot enhance its value proposition.
• Adoption: Increased adoption and recognition by the blockchain community, successful project developments, and strategic partnerships contribute to its potential.
• Scalability: The platform's ability to facilitate seamless connectivity among multiple blockchains and its focus on decentralization make it an attractive choice for projects and investors.

Future Outlook

• Growth Potential: Kusama's past performance and current developments suggest a strong potential for future growth.
• Market Sentiment: The overall bullish sentiment in the crypto market and the specific interest in Kusama indicate a positive outlook for the token.

Halal Status of Kusama

• Halal Status: Yes
• Reason: Kusama (KSM) is considered halal because its staking method and overall ecosystem are permissible under Islamic law. The token itself does not involve interest-based lending or other activities that are considered haram.

Key Points:

• Staking: The staking method used by Kusama is permissible and aligns with Islamic principles.
• Ecosystem: Kusama's ecosystem, which involves connecting different blockchains through parachains, does not inherently involve haram activities.
• Token Usage: The KSM token is primarily used for transactions within the Polkadot ecosystem and does not directly facilitate interest-based lending or other non-compliant activities.

Additional Information:

• Crowdloan System: The crowdloan system on Kusama, where users lend KSM to projects bidding for parachains, is a form of investment where tokens are locked and returned at the end of the parachain period. This system does not inherently involve riba (interest) or other haram elements.

Conclusion:

Kusama (KSM) is considered halal based on its staking method and the nature of its ecosystem, which do not involve activities prohibited by Islamic law.