Staking involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network, effectively locking cryptocurrency to receive rewards.
Kusama, which launched in early 2019, is an incentivised ‘canary’ network for the Polkadot blockchain project and is designed to battle-test technical upgrades for Polkadot as well as allow aspiring Polkadot parachain projects to test their systems before deployment on Polkadot.
Since Kusama’s launch, KR1 said it has been generating revenue on an ongoing basis through staking activities in Kusama’s native KSM digital asset. To date, the company has generated 3,258.7 KSM from staking, which thus far have not been realised into fiat currency but instead are being compounded by staking them. The company’s total holding of Kusama tokens is at 40,270.1, all of which are being actively staked and may also be used for future token distributions.
KR1 said the staking activities do not impose any additional operating costs, and that it will continue to stake a “substantial majority” of its KSM holdings with a 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 US$350mln fully diluted network valuation, makes an incredible addition to our portfolio and staking activities. Further, with Kusama as an experimental ‘canary’ network to Polkadot, we can also benefit and gain experience from the various activities being piloted”, KR1 managing director and co-founder George McDonaugh said in a statement.
“We are looking forward to ‘parachain auctions’ launching with popular projects on Kusama like Acala and Moonbeam and further iterations of ‘lockdrops’ and ‘stakedrops’, which have recently proved very popular”, he added.