Crust Network has announced a significant upgrade to its Kusama parachain slot auction incentive program, reinforcing its commitment to community participation and decentralized cloud infrastructure. As a key player in the Web3 ecosystem, Crust provides a decentralized storage network that supports multiple storage-layer protocols like IPFS and offers application-layer interfaces. With ambitions to expand into decentralized computing, Crust is building a distributed cloud ecosystem centered on data privacy and user ownership.
On May 15, Crust Shadow — the Kusama-based canary network of Crust Network — successfully registered on Kusama with parachain ID 2012. This milestone marks the beginning of Crust’s journey toward securing a Kusama parachain slot through a community-driven crowdloan campaign. The first auction is expected to launch within a week of official announcement, with Kusama planning up to five auctions spaced seven days apart initially.
In response to extensive community feedback, Crust has enhanced its original auction reward structure to offer greater incentives and long-term value for contributors.
Enhanced Reward Structure for Greater Incentives
The upgraded reward model significantly increases both the quantity and quality of rewards available to participants:
- Total CRU rewards increased from 30,000 to 90,000: This includes 15,000 CRU during the crowdloan period and up to 75,000 CRU during the lease period.
- New CSM token rewards added: Up to 18 million CSM (Crust Shadow’s native token) will be distributed as additional incentives.
This dual-token reward system combines CRU, the mainnet token with established market liquidity, and CSM, the canary network token expected to list on major exchanges soon. The enhancement reflects Crust’s strategy to align short-term participation with long-term ecosystem growth.
👉 Discover how decentralized storage networks are reshaping Web3 participation
Key Features of the Updated Auction Plan
1. Dual-Chain Strategy: Crust Shadow on Kusama, Crust Mainnet on Polkadot
Crust Shadow will compete for a Kusama parachain slot, serving as a testing ground for technologies later deployed on Crust’s mainnet within the Polkadot ecosystem. This approach ensures robustness before mainnet integration.
2. Dual-Token Incentives (CRU + CSM)
Participants earn both CRU — a widely traded token with real-world utility — and CSM, which offers speculative and future-use potential. This combination enhances immediate value while encouraging long-term holding.
3. Guaranteed Rewards Regardless of Auction Outcome
Even if the bid fails, contributors receive proportional rewards during the crowdloan phase. This "no-loss" incentive reduces risk and encourages broader participation.
4. Phased Reward Distribution
Upon successful auction:
- 30% of lease-period rewards released immediately
- 10% released per lease period (8 periods total, each lasting 6 weeks)
This staggered release promotes sustained engagement over the full 48-week lease term.
5. Staking Opportunities Post-Reward
After receiving CRU rewards, users can stake them with Crust validators or candidates to earn additional yield — creating a compounding incentive loop.
How to Participate in the Crowdloan
Kusama’s native crowdloan mechanism allows users to contribute without transferring funds to third parties. Instead, KSM tokens are locked via a special transaction indexed under a campaign ID. This design ensures maximum security and transparency.
There are two ways to participate:
- Direct Participation via Kusama Wallets
Users can contribute directly using Polkadot.js or compatible wallets by following official instructions from Crust. Full step-by-step guides will be provided. - Third-Party Aggregated Campaigns
Some exchanges, wallets, or platforms may run their own campaigns. Participants should follow the specific instructions of those services.
Regardless of method, all contributions are recorded on-chain and eligible for rewards.
👉 Learn how blockchain crowdloans are unlocking new forms of decentralized funding
Reward Breakdown: Crowdloan Phase vs Lease Phase
Phase 1: Crowdloan Participation Rewards
15,000 CRU + 3 million CSM (total cap)
- Distributed weekly based on contribution snapshots
- Reward rate: 1 KSM = 0.07 CRU + 14 CSM per week
- Example: Contributing 100 KSM for one week earns 7 CRU + 1,400 CSM
- Rewards accumulate until either the cap is reached or the auction is won
- Early contributors receive more due to compounding weekly payouts
Note: These rewards are issued regardless of auction success — an important risk-mitigation feature.
Phase 2: Parachain Lease Rewards
75,000 CRU + 15 million CSM (total cap)
Distributed after winning the auction:
- If total contributions are less than 50,000 KSM: Fixed rate of 1 KSM = 1.5 CRU + 300 CSM
- If contributions exceed 50,000 KSM: Rewards are shared proportionally among all contributors
Distribution schedule:
- 30% released immediately upon winning
- 10% released at the start of each subsequent lease period (every 6 weeks)
Real-World Example: John’s Contribution
John contributes 100 KSM at the start of the crowdloan. After four weeks, Crust wins the auction with 48,000 KSM locked.
- Crowdloan Phase:
4 weeks × (7 CRU + 1,400 CSM) = 28 CRU + 5,600 CSM - Lease Phase:
Since total KSM (48,000) < 50,000, fixed rate applies:
100 × (1.5 CRU + 300 CSM) = 150 CRU + 30,000 CSM
✅ Total Earned: 178 CRU + 35,600 CSM
🔒 KSM Locked: For the full lease duration (48 weeks)
This example illustrates how early and sustained participation maximizes returns.
Frequently Asked Questions (FAQ)
Q: What happens if Crust doesn't win the auction?
A: Contributors still receive crowdloan-phase rewards based on their participation duration. All KSM is returned after the campaign ends.
Q: Can I withdraw my KSM during the crowdloan?
A: No — once contributed, KSM remains locked until either the auction succeeds (locked for lease duration) or fails (returned after campaign ends).
Q: When will CSM be listed on exchanges?
A: While no official date is confirmed, Crust plans to list CSM on major exchanges shortly after securing the parachain slot.
Q: Is there a minimum contribution amount?
A: There is no official minimum — even small contributions are eligible for proportional rewards.
Q: How do I claim my rewards?
A: Rewards are automatically distributed via airdrop to your wallet address used in the contribution. No manual claiming required in most cases.
Q: Why use both CRU and CSM for rewards?
A: CRU provides immediate liquidity and value; CSM incentivizes long-term alignment with Crust Shadow’s development and future utility.
About Crust Network
Crust Network delivers decentralized storage solutions for the Web3 era, supporting protocols like IPFS and offering developer-friendly APIs. Its technology stack extends beyond storage into decentralized compute layers, aiming to create a full-stack private and user-owned cloud alternative.
Key milestones include:
- Launch of Crust Maxwell, a fully functional testnet with staking, decentralized storage marketplace (DSM), and file retrieval
- Participation in Substrate Builders Program and Web3.0 Bootcamp
- Recipient of grants from the Web3 Foundation
As part of the Polkadot ecosystem, Crust leverages Substrate’s interoperability features to build scalable, cross-chain applications focused on data sovereignty.
👉 Explore how next-gen blockchain networks are transforming digital ownership
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