(“KR1” or the “Company”)
Revenue from Kusama Staking Yields
Kusama is an incentivised ‘canary’ network for the Polkadot blockchain project. Kusama is designed to battle-test technical upgrades for Polkadot as well as allow aspiring Polkadot parachain projects to test their systems before deploying on Polkadot. However, it is also envisioned that Kusama may become home to a range of lower value blockchain projects, that do not require Polkadot’s ‘stability’ and far superior safety guarantees. As such, Kusama could become an important standalone platform with a thriving economy over time.
The Kusama blockchain launched in early 2019 and migrated to a decentralised ‘Proof-of-Stake’ network in
As at the date of this announcement, KR1’s total holding of Kusama tokens is 40,270.10 KSM, which are being actively staked. These might also be utilized for future token distributions through Kusama parachain auctions or similar activities.
As with the Company’s
Given the high tolerance for technically ‘breaking-changes’ for the Kusama network and potentially rapidly changing network conditions and parameters, it is currently not possible to provide useful estimates as to how many KSM the Company is going to generate on a continuous basis but the Company will provide updates on any revenue in future announcements.
Staked digital assets in ‘Proof-of-Stake’ networks carry certain unique risks, specifically, ‘slashing’. Slashing occurs when certain network participants are automatically penalised by the network if the network’s health is compromised by major technical issues, internal attacks or cyber-attacks.
The staking activities do not impose any overhead or additional operating costs to the Company. KR1 has been staking and will continue to stake a substantial majority of its KSM holdings with a trusted and secure third-party staking service provider.
“It is extraordinary to see the various ways new crypto networks are launched, continuously innovating with new token distribution methods, which can capture a lot of value. Kusama, which currently has a
The Directors of
For further information please contact:
+44 (0)16 2467 6716
|(AQSE Corporate Adviser)
+44 (0)20 7469 0930
KR1 is a leading digital asset investment company supporting early-stage decentralised and open-source blockchain and
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a