Our Kusama Parachain Lease Offering (PLO) has started, meaning KSM holders can now lock their tokens on our crowdloan module to receive Shiden Network Tokens (SDN) after the network wins the Kusama Parachain auction.

Our team is very thrilled to announce that we’ve started our Kusama Parachain Lease Offering today! Now, KSM holders can lock their KSM for Shiden Network through Polkadot.js, Fearless Wallet, MathWallet, or exchanges including OKEx, Kraken and KuCoin to get SDN tokens after the network wins the Parachain auction.

The amount you can earn will be decided after the auction, mainly based on the following 2 parameters:

When you joined our crowdloan (The earlier, the more SDN)
How many KSM tokens you locked

As we have explained before, the earlier you join our crowdloan, the more SDN tokens you can get. Please keep in mind that only crowdloan participants can get the bonus!

What is Shiden’s Crowdloan?

Kusama allows Parachains to source tokens for their Parachain bids in a decentralized crowdloan. Shiden Network is conducting a crowdloan campaign to secure a Parachain slots. The crowdloan mechanism allows people to contribute by agreeing to lock up their own KSM until the end of the lease, and SDN token (the native token of Shiden Network) is distributed based on both the amount a user locks and when they lock. Crowdloaned KSM will be returned to contributor’s control at the end of the lease period. Contributors don’t need to withdraw KSM tokens, KSM will be returned automatically.

How to Join Shiden’s Crowdloan

There are 2 ways to join our crowdloan: joining from wallets (Polkadot.js, Fearless, MathWallet), and joining from exchanges (OKEx, Kraken, and KuCoin). In this article, I will explain how to join our crowdloan from Polkadot.js.

https://www.youtube.com/watch?v=8pRmDL70kzk - "Shiden Network Crowdloan with Polkadot.js"

Step1: Access the Polkadot.js Kusama Page

First of all, please visit https://polkadot.js.org/apps/#/explorer and open the Kusama Network page.

To join our crowdloan or auction, please click “Network” → “Parachains”

Once you open the above page, you can see “Parathread”, “Auction”, and “Crowdloan” buttons along the top bars. To become a Parachain, Shiden Network is initially registered as a Parathread (Our Parachain ID is 2007) before it conducts its crowdloan and auction. As we have described in the Shiden Parachain Auction document, only crowdloan participants can get the bonus rate. And, the earlier you join our crowdloan, the more SDN tokens you can get.

Step 2: Join Our Crowdloan

The “Crowdloan” and “Auction” are two different things. Shiden starts its crowdloan 7 days before the auction. From a user’s point of view, there are two options: join the auction or join the crowdloan. In the Shiden’s case only crowdloan participants can receive an additional bonus.

So, please click Crowdloan! Don’t select “Auctions”

Once you clicked “Crowdloan”, you can see the page below 👇

Click “Contribute” and lock your KSM.

Lastly, let’s sign the transaction and save the transaction address!

Shiden Token will be distributed once we win the auction and KSM token will be returned after expiring the lease period.

We noticed a Ledger’s problem on Chrome. You can solve it by adding Ledger directly to Polkadot.js.

https://support.polkadot.network/support/solutions/articles/65000177279-ledger-device-is-disconnected-or-unable-to-claim-interface-errors

How the Crowdloan Works

To collect KSM tokens as fast as possible, Shiden’s team has chosen to crowdfund its slot lease using Kusama’s crowdloan mechanism. This allows KSM holders to contribute by locking up their own KSM tokens for 11 months, and the network will reward their contributions by providing SDN tokens. Shiden crowdloan participants have an 11 month vesting period, but token holders can stake locked SDN tokens to the network, allowing participants to earn staking rewards.

The Kusama Parachain Lease Offering consists of both a “Crowdloan” and the Kusama “Auction”. Shiden Network will conduct its crowdloan before the auction. The team highly encourages KSM holders to join the crowdloan as soon as possible if they would like to participate in the PLO. The collected KSM will be used to help Shiden win a Kusama Parachain auction slot.

After 11 months, KSM tokens will be returned. Hence, this is neither an ICO nor a direct investment — this is more akin to “staking” with a lockup.

If you need more information, learn more from here 👇https://docs.plasmnet.io/learn/parachain-lease-offering/shiden-parachain-auction-strategy

To reiterate, the important thing is that the earlier you join our crowdloan, the more SDN you can get. For example,

If you lock 1KSM for Shiden Network, you are going to receive X SDN after the network wins the auction. Let’s assume 600,000 KSM (About $300M) are locked during the PLO. In this case, X is 25.6 SDN (15,400,000 SDN / 600,000 KSM).
However, since Shiden’s crowdloan has a bonus rate, you can get around 30.8 SDN (6/5 × 25.6 SDN) if you join the crowdloan before the day3 of the auction. On the other hand, if you join our crowdloan later, your SDN will be around 20 SDN.
The insight we can get here is that the earlier you join the crowdloan, the more SDN you can receive.

You can find more information here👇

https://forum.plasmnet.io/t/faq-how-to-estimate-how-many-sdn-you-will-receive-from-crowdloan/1225

About Plasm

Plasm Network is a dApps hub on Polkadot that supports Ethereum and layer 2 solutions like ZK Rollups. Plasm aims to be a multi-chain smart contract platform that will support multiple blockchains and virtual machines like EVM and WASM.

Original published in June 8, 2021, "Shiden’s Crowdloan Has Started!

Shiden’s Crowdloan Has Started!