Investment Research Analysis on Manta Network’s Canary Network, Calamari (KMA)
1. Project Introduction
Calamari network is Manta Network’s community-driven canary network, a part of Polkadot’s ecosystem privacy-preservation project. It is also a parachain of privacy protection on Kusama, which aims to provide online privacy services for the whole Kusama DeFi network.
As the canary network of Kusama, Calamari firstly has the attributes of the Manta Network: Providing privacy protection for cross-chain infrastructure. Calamari’s early products include:
1. Privacy payment MariPay — MariPay supports private transactions of Kusama and parachain assets, including the main crypto assets that are supported on Kusama. Users can privatize mainstream assets such as Stablecoins and wrapped BTC. Additionally, Calamari provides secure online privacy zero-knowledge proof technology.
2. Decentralized, private AMM trading platform, MariSwap — MariSwap provides users with private addresses to carry transactions of parachain assets and it also offers new functions including private liquidity pools.
At the same time, Kusama, originally a Polkadot’s testnet, has become more and more independent. As a result, its ecosystem development will be faster than Polkadot’s ecosystem, and Polkadot’s ecosystem projects have launched their own pre-production environment. Therefore, the Calamari network is not only the testnet of the Calamari network, but it is also an independent private infrastructure on Kusama to provide privacy protection services for its ecosystem projects while participating in the construction of the Kusama ecosystem.
Calamari will participate in the parachain slot auction in Kusama’s 6th auction which will last 8 periods, that is, the lease period is 6 weeks * 8 = 48 weeks;
Details of the bidding strategy and rewards that Calamari officially announced include:
Up to 3 billion KMA tokens will be rewarded to KSM contributors, accounting for 30% of KMA’s total initial supply. Calamari will design the hard cap using the step-up limit.
Every KSM rented to Calamari’s slot auction will receive a fixed amount of 10,000 KMA tokens as a reward. The advantage of this fixed ratio is that the reward of KMA will not change.
In addition, the top 1000 contributors will receive additional KMA Rewards:
· The top 1–500 contributors will receive an additional 10% reward
· The top 501–1000 contributors will receive an additional 5% reward
No private sales, no team tokens, preferentially allocated to early participants
KMA issued 10 billion tokens in total, including:
30% for PLO Supply;
20% for Lockdrop MA;
15% for Dev Fund;
5% for Marketing;
20% for Liquidity Mining;
10% for PLO Reserve
According to the information previously disclosed by Manta, it completed a million-dollar seed round led by Polychain, Three Arrows Capital, Multicoin, Alameda, Hypersphere, and other institutions. Manta received grants from Polkadot’s official Web3 foundation, and is a member of the Substrate Builder Program and a member of the Blockchain Xcelerator of the University of Berkeley.
4. Practical Value of The Token
1. Slot auction reward
2. Used to pay anonymous tokens and minting costs
3. Network transactions cost
4. Community and governance
5. Valuation Analysis
At present, the accepted valuation methods of parachain auction are as follows:
Parachain project valuation = The Opportunity cost of participating in parachain auction / Proportion of incentive project tokens
Opportunity cost of KSM = KSM contribution x KSM staked income x KSM price
Assuming that the price of KSM is $180 USD and the annualized staked income of KSM is 14.5%, the auction projects of each slot can be calculated. The calculation of the cost of obtaining tokens on Calamari parachain is lower so it will result in more room for growth.
Note: This article is for information sharing only and does not constitute any investment advice.