Name |
Coinmotion Oy |
Relevant legal entity identifier |
743700PZG5RRF7SA4Q58 |
Name of the crypto-asset |
Kusama |
Consensus Mechanism |
Kusama is a scalable, interoperable blockchain platform built using a Nominated Proof of Stake (NPoS) consensus mechanism. It is a canary network for Polkadot, allowing developers to experiment and deploy new features before they are added to Polkadot. Kusama’s NPoS mechanism ensures high security, decentralized control, and rapid block finality. Key Features of Kusama’s Consensus Mechanism: 1. Nominated Proof of Stake (NPoS): Validators and Nominators: Kusama's consensus mechanism relies on validators and nominators. Validators are responsible for producing blocks and validating transactions, while nominators select trustworthy validators by staking KSM (Kusama’s native token). Staking and Security: Validators must stake KSM tokens to participate in consensus, and nominators back validators with their KSM tokens. The more KSM tokens staked by both validators and nominators, the more secure the network is. Validator Rotation: Validators are selected based on the amount of KSM staked, with a fixed number of validators chosen to participate in consensus at any given time. The network periodically rotates validators to ensure fairness and prevent centralization. Finality and Security: NPoS ensures secure and fast finality. Once a block is validated, it becomes part of the immutable blockchain, meaning it cannot be reverted or reorganized. 2. Governance: On-Chain Governance: Kusama features a robust on-chain governance system that allows KSM holders to vote on important protocol decisions, including changes to the consensus mechanism, network upgrades, and other governance parameters. Democratic Decision-Making: All token holders have voting power proportional to the amount of KSM they hold and are willing to lock up. This ensures decentralized control over network upgrades and parameters. Governance Proposals: Kusama's governance is open and transparent, with proposals submitted by the community, allowing participants to shape the direction of the network. 3. Parachain Auctions: Shared Security: Kusama supports parachains, which are individual blockchains that benefit from Kusama's shared security model. Parachain slots are won through auctions where participants bid with KSM tokens, ensuring that only the most committed participants secure a parachain slot. Scalability: This multi-chain model enables Kusama to scale horizontally, allowing for the connection of numerous independent blockchains, which can interoperate within the Kusama ecosystem. 4. Fast Finality and High Throughput: Speed: Kusama’s consensus mechanism allows for rapid block finality and high throughput, supporting thousands of transactions per second. Low Latency: The system’s low-latency design ensures quick confirmation times, enabling Kusama to handle high transaction volumes efficiently. |
Incentive Mechanisms and Applicable Fees |
Kusama’s incentive mechanisms ensure active participation in securing and maintaining the network while its fee structure supports efficient operation and scalability of the ecosystem Incentive Mechanism: 1. Validator Rewards: Block Rewards: Validators in Kusama earn rewards for successfully producing blocks and validating transactions. These rewards are given in KSM tokens and are distributed proportionally to the amount of KSM staked by validators and nominators. Transaction Fees: In addition to block rewards, validators also earn transaction fees for validating and including transactions in blocks. These fees are paid by users who want their transactions included in the next block. 2. Nominator Rewards: Staking Rewards: Nominators, who delegate their KSM tokens to trusted validators, share in the rewards earned by the validators they support. Nominators receive a proportion of both the block rewards and transaction fees, incentivizing them to choose high-performing validators. Reward Distribution: The rewards earned by nominators are distributed based on the amount of KSM they have staked with a validator. More KSM staked means higher rewards for the nominator. 3. Parachain Auction Participation: Slot Auctions: Kusama's parachain slots are won through an auction process, where participants bid using KSM tokens. This incentivizes KSM holders to lock up their tokens in parachain auctions to secure valuable parachain slots for their projects. Crowdloan Incentives: Projects bidding for parachain slots can incentivize users to participate in crowdloans, where users lend their KSM tokens to the project in exchange for potential rewards once the project secures a parachain slot. 4. Governance Participation: Voting Rewards: KSM token holders who participate in governance decisions, such as voting on proposals and upgrades, are incentivized with the ability to influence the future of the network. Although there are no direct financial rewards for voting, active participation in governance ensures the sustainability and growth of the ecosystem. Applicable Fees: 1. Transaction Fees: Fee Structure: Kusama users pay transaction fees for processing their transactions on the network. These fees are generally low and are determined by the transaction's size and network demand. Transaction fees are paid in KSM tokens and are used to compensate validators for their work. Dynamic Fee Adjustment: The fee rate can adjust based on the current network congestion. During periods of high demand, transaction fees can increase, prioritizing faster processing of transactions with higher fees. 2. Parachain Slot Auction Fees: Bidding Fees: Projects wishing to secure a parachain slot must participate in an auction and bid KSM tokens to win the slot. The auction fees paid to win a parachain slot are burned or redistributed within the Kusama ecosystem to support network growth and maintenance. 3. Storage Fees: Data Storage: Kusama charges fees for storing data on the network, including smart contracts and parachain data. These fees are required to ensure efficient data usage and prevent unnecessary resource consumption. Fees for storage are also paid in KSM tokens. 4. Governance Fees: Proposal and Voting Costs: Participants in governance, such as those submitting proposals or voting on network upgrades, may be required to pay minimal fees, ensuring the governance process is secure and spam-free. These costs help prevent abuse of the voting system and are intended to maintain an orderly governance environment. |
Beginning of the period |
2024-06-09 |
End of the period |
2025-06-09 |
Energy consumption |
474616.80000 (kWh/a) |
Energy consumption resources and methodologies |
For the calculation of energy consumptions, the so called “bottom-up” approach is being used. The nodes are considered to be the central factor for the energy consumption of the network. These assumptions are made on the basis of empirical findings through the use of public information sites, open-source crawlers and crawlers developed in-house. The main determinants for estimating the hardware used within the network are the requirements for operating the client software. The energy consumption of the hardware devices was measured in certified test laboratories. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. |
Renewable energy consumption |
26.538687083 |
Energy intensity |
0.00054 (kWh) |
Scope 1 DLT GHG emissions - Controlled |
0.00000 (tCO2e/a) |
Scope 2 DLT GHG emissions - Purchased |
157.95867 (tCO2e/a) |
GHG intensity |
0.00018 (kgCO2e) |
Key energy sources and methodologies |
To determine the proportion of renewable energy usage, the locations of the nodes are to be determined using public information sites, open-source crawlers and crawlers developed in-house. If no information is available on the geographic distribution of the nodes, reference networks are used which are comparable in terms of their incentivization structure and consensus mechanism. This geo-information is merged with public information from Our World in Data, see citation. The intensity is calculated as the marginal energy cost wrt. one more transaction.
Ember (2025); Energy Institute - Statistical Review of World Energy (2024) – with major processing by Our World in Data. “Share of electricity generated by renewables – Ember and Energy Institute” [dataset]. Ember, “Yearly Electricity Data Europe”; Ember, “Yearly Electricity Data”; Energy Institute, “Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/share-electricity-renewables |
Key GHG sources and methodologies |
To determine the GHG Emissions, the locations of the nodes are to be determined using public information sites, open-source crawlers and crawlers developed in-house. If no information is available on the geographic distribution of the nodes, reference networks are used which are comparable in terms of their incentivization structure and consensus mechanism. This geo-information is merged with public information from Our World in Data, see citation. The intensity is calculated as the marginal emission wrt. one more transaction.
Ember (2025); Energy Institute - Statistical Review of World Energy (2024) – with major processing by Our World in Data. “Carbon intensity of electricity generation – Ember and Energy Institute” [dataset]. Ember, “Yearly Electricity Data Europe”; Ember, “Yearly Electricity Data”; Energy Institute, “Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/carbon-intensity-electricity Licenced under CC BY 4.0 |