Kusama is a multi-chain network that facilitates early-stage deployment and experimentation for projects intended for the Polkadot ecosystem. Developed with Substrate, a blockchain framework by Parity Technologies, Kusama closely mirrors the Polkadot codebase while offering a more adaptable environment for testing and iteration.^[5][6][1]

Overview

Kusama functions as a testing ground for blockchain developers, providing an environment with lower entry barriers for deploying parachains and reduced bond requirements for validators. The network operates on a heterogeneously-sharded, multichain architecture using a nominated proof-of-stake (NPoS) consensus system.

This system allows for energy-efficient operations compared to traditional proof-of-work (PoW) models and supports on-chain upgrades without the need for forks. Additionally, Kusama enables cross-chain communication through its cross-chain message passing (XCMP) protocol, facilitating interaction between various parachains.
The network’s governance model is decentralized and permissionless, allowing token holders to participate in decision-making processes. This governance is quicker than Polkadot’s, with a combined voting and enactment period of 15 days, making it suitable for projects that require rapid development cycles. ^[1][2]

History

Kusama was introduced in 2019 by Parity Technologies, the creators of Polkadot, under the direction of Dr. Gavin Wood, a co-founder of Ethereum. It was designed as a "canary network," offering a real-world environment for testing new features and upgrades before their deployment on Polkadot.

The Web3 Foundation, which supports decentralized web technologies, has played a significant role in Kusama’s development by providing grants and resources for research and community initiatives. ^{[7][8][9][10][11][12]}

Tokenomics

KSM, the native token of Kusama, was initially distributed through an airdrop to participants in the Polkadot (DOT) token sale on a 1:1 basis. It was also available through a frictional faucet, which has since been discontinued. Unlike Polkadot, Kusama has not undergone redenomination, maintaining a stable circulating supply.

KSM tokens are utilized for governance, staking, and rewarding validators. The economic model supports early-stage projects with low transaction fees and a flexible framework, allowing for cost-effective deployment and testing. Validator rewards are distributed in KSM tokens, and the network's inflation rate is managed to ensure a balanced token supply.^[3][4]

Funding

Kusama’s growth has been supported by funding from the Web3 Foundation and other blockchain-focused organizations. These funds have been used to advance research, foster community development, and enhance technical capabilities.

The Kusama Treasury is also instrumental in financing innovative projects within the ecosystem, providing resources for initiatives that contribute to the network’s ongoing development.^[8]