SherpaX is ready to go for the Kusama slot auction

5 min readMay 20, 2021

The Kusama slot auction is coming soon. As the canary network of ChainX, SherpaX will participate in the auction of the Kusama slot and access Kusama as a parachain. At that time, SherpaX will share the security of the entire Kusama network and can communicate with other parachains through the XCMP protocol to truly realize multi-chain and cross-chain, break the ecological barriers of Ethereum, Bitcoin, and Polkadot, and realize the interoperability of ten thousand chains.

SherpaX launch and governance route

SherpaX is the pioneer network of ChainX. It has the characteristics of experimentation, authenticity, and independent existence. It exists in the real economic environment and has been running continuously under the maintenance of the community.

Before the Kusama slot auction, we will deploy BTC to the cross-chain bridge, ETH to the cross-chain bridge, and AMM-mode dex to SherpaX for joint debugging. After SherpaX is connected to the parachain, it can be officially launched.

Community governance plan

SherpaX is managed by all people who own KSX (SherpaX’s native token) in a fair and transparent manner, and each community member may decide the future direction of SherpaX. All KSX holders can propose proposals, participate in a referendum, and elect council members.

SherpaX will initially issue 21 million KSX in the form of IAO (Initial Airdrop Offering), and there will be a certain amount of additional issuance every year.

SherpaX auction method

SherpaX chose to use Kusama’s built-in Crowd Loan mechanism to crowdfund the slot lease. This mechanism supports the SherpaX team to win the parachain through users voluntarily locking their KSM until the slot lease expires. The SherpaX team rewards supporters KSX and hosts them on Kusama or ChainX platforms.

SherpaX bidding parameters

There are several key parameters of the SherpaX slot auction.

1) Total Token

SherpaX will initially issue 21 million KSX in the form of IAO (Initial Airdrop Offering), with approximately 10% additional issuance each year.

2) Distribution principle

As the pioneer network of ChainX, SherpaX, its native token KSX is distributed as follows:

21 million * X = KSX airdropped to PCX (1:1) holders

The specific value of X depends on the time when Kusama goes online on the Parachain of Statemint (T1) and the time when the PCX mining reward is halved (T2).

When T1 is earlier than T2: 1:1 airdrop to PCX holders according to the actual issued volume of PCX, X <50%

When T1 is equal to or later than T2: According to T2, the actual issued volume of PCX is 1:1 airdrop to PCX holders, X=50%

(100%-X)* 21 million is allocated to the treasury

From this, 20% is used for community autonomy, and 80% is used for Kusama parachain slot auctions.

For example, when 50% of the KSX is allocated to the treasury, 40% of the KSX is used to reward the Kusama parachain slot.

~10% additional KSX is issued annually

Allocated to the treasury to reward Collators.

SherpaX Slot Auction Incentive Rules

1. Basic incentives:

The user that supports the successful auction of SherpaX’s parachain slot, will be rewarded 10 KSX for every 1 KSM voted;

2. Additional incentive bonus for successful slot auction:

According to the user’s total locked KSM, different percentages of extra bonuses are given on top of the basic incentives. The specific conditions are as follows:

1) Quota bonus: According to different lock-up quotas of users, different percentage bonuses will be obtained.

2) Invitation bonus: Invite others to support the SherpaX slot auction, and users can get an additional bonus of 5% of the basic reward. In other words, users can enjoy a maximum bonus of 40% (amount bonus) + 5% (invitation bonus) = 45%. details as follows:

3.Incentives for auction gap period:

In order to ensure the interests of community users, if you support the SherpaX slot auction, but this auction is not successful, if you choose to continue to lock the position to support the next auction, then you will receive an incentive for the additional waiting period.

Each KSM will get one more KSX in each auction period. If you support SherpaX in the Nth slot auction with 100 KSM, and SherpaX actually wins the Mth slot, then you will get a 100*(M-N) KSX auction gap bonus. For example, you started in the first auction, and SherpaX wins the fourth auction, you get a total of 100*(4–1) = 300 KSX extra.

4.Voting lock-up time:

48 weeks after the slot has been attained.

KSX token distribution

According to the online progress of the Kusama network parachain, the Statemint parachain will have priority over the parachains in each auction. In order to distribute KSX to users as soon as possible, the development team decided to issue KSX assets on statemint as soon as the statemint parachain was launched, and combined with PCX snapshot data and previous activity data, the KSX will be issued to user accounts as soon as possible.

After SherpaX officially auctions the parachain, the KSX assets on Statemint and the KSX assets on the SherpaX parachain can be freely converted.

SherpaX’s benefit

As the forerunner of ChainX, SherpaX eliminates more unknown risks for ChainX.

SherpaX’s primary exploration direction at the beginning of its launch

1. After SherpaX becomes Kusama’s parachain, the main experimental direction is to route XBTC of ChainX to SherpaX via Spider.

2. XBTC on SherpaX issues other synthetic assets through mirror simulation. The so-called synthetic asset is a simulated expression of the original asset, but it is not the original asset itself. It is equivalent to a “parallel world” of existing assets.

3. The launch of derivatives such as Bitcoin futures and options has gradually become Bitcoin’s largest Layer 2 financial derivatives platform.

About ChainX

ChainX, the earliest launched project in Polkadot’s ecosystem, is committed to the research and application of Bitcoin layer 2 expansion, digital asset gateway, and Polkadot second-layer relay chain, to realize cross-chain asset exchange, leading the new direction of Bitcoin Cross-Defi.

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ChainX is a BTC Layer 2 solution compatible with EVM that utilizes Bitcoin as a gas fee, serving as the predecessor network of BEVM.