Crowdloan Strategy
Crowdloan Strategy
Bidding for Parachain Slots #3/4 onwards
With Kusama parachain auctions just around the corner, community interest in the ecosystem is as high as ever. This, combined with an unhealthy dose of FOMO, is leading to a skyrocketing amount of KSM being locked in some of the crowdloan campaigns that were announced early on.
The expectation is that the high ratio of contributed KSM will result in an extremely high valuation of the projects which join as the first parachains. While seeking to become parachain as early as possible, we believe that it is in the best interest of the project and of our future stakeholders to enter the race at a later point.
Our aim is to achieve a more realistic valuation of Basilisk which is sustainable in the long run and which will help propel Basilisk in becoming the go-to liquidity provider of the Kusama ecosystem.
Against this background, we are happy to announce that Basilisk will be joining the Kusama parachain auctions when bidding starts for Parachain slots #3 or #4.
After carefully evaluating the current situation, we would like to present to you the Basilisk crowdloan strategy which is built upon the following 3 pillars:
An ambition to become a Kusama parachain against the lowest possible price, thereby achieving a more realistic valuation and offering a maximum upside for the early supporters.
A generous distribution of BSX tokens to all crowdloan backers which is designed to incentivize long-term participation.
An additional HDX Bonus Mechanism which will help us raise just the right amount of KSM and highlight the tight bond between Basilisk and HydraDX.
Our Strategy
Our crowdloan strategy revolves around the aim to achieve a sustainable valuation of Basilisk by obtaining a parachain slot against a realistic price. According to our present insights, our goal will be to raise 100k KSM. At a current market price of about $500 per KSM, this would amount to $50M of value which would be locked for a period of 48 weeks.
With KSM staking rewards in the range of 10-15%, this locked value will represent an opportunity cost of between $5M and $7.5M. Given that we are distributing 15% of the total BSX supply, this crowdloan goal would theoretically imply a BSX valuation between $33M and $50M. Keep in mind that these numbers might be reevaluated and adjusted once the first parachain slots are auctioned.
As a second and third pillar of our strategy, we are introducing an array of incentives designed to stimulate early community support. To begin with, as recently announced, we will be distributing 15bn BSX tokens (representing 15% of the total supply) to all crowdloan backers.
To make our case even more attractive, we are now happy to announce an additional bonus mechanism. 👇👇👇
HDX Bonus Mechanism
We have thought long about an additional reward element that will help us raise just the right amount of KSM in the crowdloan as necessary for winning a parachain slot. Our aim is to find the sweet spot where we can bid sufficient KSM tokens without overpaying.
To help raise sufficient funds while highlighting the tight link between the two projects, we will stimulate the Basilisk crowdloan by introducing an additional HDX bonus mechanism.
The HDX Bonus Mechanism is financed by the HDX tokens which were unsold during the HydraDX LBP event - 56.8M HDX, representing $4.5M as per concluding LBP price. These rewards will be distributed variably, depending on how good Basilisk is doing in the race for a parachain slot.
The HDX rewards will be higher in the initial phase where Basilisk is still lagging behind its competitors. As we catch up and take over the lead, the HDX bonus will become smaller. We expect that the HDX bonus will roughly amount to 300 HDX per locked KSM in the initial phase, dropping to around 50 HDX as Basilisk leads the way.
Keep yourself updated
We are currently in the process of finalizing our plans and setting in stone the vesting schedule of BSX and HDX for the crowdloan participants. You can expect the following update from our side in the upcoming days. In the meantime, let us know your thoughts in our 👉 Discord 👈 !
For more spicy info don’t forget to join Jakub’s AMA session hosted by PolkaWarriors on June 14th. Turn on, tune in (but don’t drop out).
