What is Moonriver? (MOVR)

The Beginner’s Guide

The Moonbeam Foundation created Moonriver as an Ethereum-compatible blockchain environment on the Kusama (KSM) network. Working as a parachain in Moonriver, Kusama. And it is designed to help crypto projects expand their reach to new users and markets with a multi-chain approach.

In Kusama, parachains are private blockchains that feed into the main blockchain and heart of the Kusama network, called the Relay Chain. Relay Chain is responsible for Kusama’s shared security, consensus and transaction agreements. Parachains are integrated into the Relay Chain, taking advantage of the core features of the Relay Chain.

The Moonbeam team has chosen to launch Moonriver (MOVR) in Kusama to provide its community with an ethereum compatible smart contract platform. And then it launches Moonbeam (BEAM), a similar platform for Polkadot, in 2021.

Moonriver is intended to function as a “canary net” for Moonbeam in Polkadot; This means that the new code can be tested and verified under real economic conditions before being sent to Moonbeam. It means it will be sent to Moonriver first.

Moonriver’s native cryptocurrency MOVR should play an important role in maintaining and operating the Moonriver network. Paying transaction fees, supporting smart contract execution, incentivizing block generation to support the network. And Moonriver is expected to be used to facilitate the on-chain governance mechanism.

MOVR is expected to vote on community members using KSMs, Kusama’s cryptocurrency, for the app to be released as a parachain in Kusama in a process called the Parachain Auction.

Moonriver (MOVR) Network Design

Moonriver is designed to work as a smart contract platform that allows developers to redistribute their ethereum dapps in a substrate environment with minimal friction. This is due to the rewriting of smart contracts powering Ethereum dapps for the Karura network. Or it means it won’t need to be reconfigured.

If you’re not familiar, Substrate is a framework for building new blockchains and blockchain applications that can run on Kusama and Polkadot networks.

To access these features, the Moonriver platform will provide developers with the following main services:

  • EVM implementation – allows migration of Ethereum-based smart contracts to the Kusama environment.
  • Web3 compatible API – Allows Ethereum-based tools like the popular Ethereum wallet Metamask to be used with Moonriver
  • Bridges – Allows token transfers, status visibility, and message passing with other chains such as Ethereum and Bitcoin.
  • Built-in integrations for assets like DOT and ERC-20s and infrastructure services like Chainlink and The Graph.

Moonriver’s native cryptocurrency MOVR plays an important role in maintaining and operating the Moonriver platform. And it can be used to execute smart contracts, incentivize nodes, pay transaction fees and simplify management.

MOVR Token Launch & Issuance

Currently, an estimated 100 projects can be built on the Kusama network. And he can exploit the security of the Relay Chain by accessing what Kusama calls the parachain slot. This number is flexible and may change over time through management voting.

Access to Kusama parachain slots is provided to projects for fixed periods of 6-48 weeks. Moonriver must go through an auction to gain access to one of the 100 slots.

During a parachain auction, Kusama owners can link their KSMs to support the project they believe should get a parachain slot. After a set period of time, the project with the most KSM committed to their campaign usually gains access to a parachain slot, allowing them to run on Kusama’s network for a period of 6-48 weeks.

The Moonriver team will crowdsource support for the parachain auction bid by accepting community contributions. If Moonriver wins an auction, backers are expected to receive Moonriver’s MOVR token.

It should be noted that if Moonriver fails to win a parachain slot, the KSM committed to their bid by community participants will be returned at the end of Moonriver’s auction campaign. If Moonriver wins an auction, the linked KSM will be returned to the participants when Moonriver’s access to the parachain slot ends.

Monetary Policy

The MOVR token plays an important role in the maintenance and operation of the Moonriver network. It can be used for:

  • Paying transaction fees on the network
  • Support smart contract execution
  • Incentivizing partners to produce blocks to support the network
  • Facilitate the on-chain governance mechanism

Note: The information, comments and evaluations contained here are NOT in the Scope of Investment Consultancy. Keep following the SinceCoin.

You May Be Interested

Types of Support and Resistance

0
There are different types of support and resistance. We will now talk about a few of them. Psychological support and resistance The first type we will...

Support and Resistance Basics

Bollinger Bands

Related articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here