KUSAMA (KSM)

N

Field

Content

General information

S.1

CASP Name

BB TRADE ESTONIA OÜ

S.2

Relevant legal entity identifier

984500L05A5D0E66Q610

S.3

Blockchain network name

Kusama

S.4

Name of the crypto-asset

KSM

S.5

Consensus Mechanism

Nominated Proof of Stake (NPoS) - GRANDPA & BABE

S.6

Incentive Mechanisms and Applicable Fees

Kusama operates on a Nominated Proof of Stake (NPoS) consensus mechanism, which is an advanced form of PoS, identical to Polkadot's. It involves two main roles:

Validators: Secure the Kusama Relay Chain by staking KSM tokens, validating blocks, and participating in the consensus process (using GRANDPA for finality and BABE for block production). They are incentivized by block rewards and transaction fees.

Nominators: KSM token holders can "nominate" (delegate their stake to) trusted validators to contribute to network security and earn a share of the staking rewards. This allows broader participation in network security. 

Incentives: Validators and nominators earn rewards in KSM for their participation, which come from the network's inflation (newly minted KSM) and a portion of transaction fees. These mechanisms ensure network security and decentralization.

Slashing: Validators and their nominators face penalties (slashing) for malicious behavior or prolonged downtime, ensuring accountability.

Fees: Transaction fees on Kusama are paid in KSM. They are generally low and predictable, composed of a base fee, a byte fee (based on transaction size), and an optional tip for priority. Fees are partly burned, partly go to the Treasury DAO, and a portion is distributed to validators. Kusama's faster governance and development pace mean rapid upgrades to optimize efficiency.

S.7

Beginning of the period to which the disclosure relates

2024-01-01

S.8

End of the period to which the disclosure relates

2024-12-31

Mandatory key indicator on energy consumption

S.9

Energy consumption

~100,000 kWh per calendar year

S.10

Energy consumption sources and methodologies

The energy consumption of the Kusama network is primarily due to the electricity used by its validator nodes that secure the Relay Chain. As an NPoS network, it does not involve energy-intensive mining. Methodologies for estimation typically involve:

Hardware power draw: Analyzing the typical power consumption of standard server hardware used by validator nodes.

Validator count and uptime: Scaling this by the number of active validator nodes and their continuous operational uptime.

Kusama's design is optimized for efficiency, aiming for minimal computational overhead. As a "canary network" for Polkadot, its energy profile is very similar to its larger counterpart.

Supplementary key indicators on energy and GHG emissions

S.11

Renewable energy consumption

n/a

S.12

Energy intensity 

~0.000006 kWh per transaction

S.13

Scope 1 DLT GHG emissions – Controlled

0 t CO2eq per calendar year

S.14

Scope 2 DLT GHG emissions – Purchased

~47.5 t CO2eq per calendar year

S.15

GHG intensity 

~0.00000 kg CO2eq per transaction

S.16

Key energy sources and methodologies

The energy sources for Kusama's validator nodes reflect the diverse electricity grid mixes of their global distribution. These include a combination of conventional sources (e.g., natural gas, coal) and renewable/sustainable sources (e.g., hydro, solar, wind, nuclear), depending on the geographic location of the validator operators. Methodologies for assessing this would involve:

Geographic identification: Attempting to identify the physical locations of active validator nodes.

Grid mix data correlation: Integrating this location information with publicly available datasets on national/regional electricity generation mixes and their associated carbon intensity factors (e.g., from IEA, Ember, regional energy authorities). The relatively stable set of active validators simplifies this estimation.

S.17

Key GHG sources and methodologies

The predominant source of Greenhouse Gas (GHG) emissions for Kusama is Scope 2 (indirect emissions from purchased electricity). Methodologies for estimating these emissions involve:

Energy consumption * Emission Factor: Multiplying the estimated total electricity consumption of the Kusama network (S.8) by the carbon intensity (grams of CO2 equivalent per kWh) of the electricity mix used by its validator nodes.

Focus on operational emissions: Calculations primarily focus on the operational energy usage of the NPoS validator nodes and the Relay Chain, which constitute the main energy-consuming components. Kusama's shared security model means its parachains also derive their security (and thus part of their environmental benefit) from the Relay Chain's efficient operations.