How do you test a blockchain system without risking the stability of an entire network? In an environment where one flawed upgrade can result in serious financial loss, developers need a live setting to experiment safely.
That is where Kusama plays a critical role. Often mistaken as just a testing environment, Kusama is a fully functioning network with its own economy, governance, and developer community. It exists not to simulate reality, but to work under it.
What is Kusama?
Kusama is a public blockchain network designed for fast development and early-stage deployment.
It was launched in 2019 by Gavin Wood, who also founded Polkadot and previously co-founded Ethereum.
Kusama uses the same codebase as Polkadot, built with the Substrate framework, and serves as a space where new blockchain ideas can be implemented and evaluated before they move to Polkadot.
Although it was created to support the development process of Polkadot, Kusama is an independent network. It has its own validators, its own token, and its own governance system.
The network allows developers to test new ideas under real conditions, with real users, and with assets that hold actual value.
How Kusama Works
Kusama operates using a central chain called the Relay Chain. This chain is responsible for coordinating all activity on the network.
Independent blockchains called parachains connect to the Relay Chain. Each parachain is developed for a specific purpose, such as finance, identity, or digital content.
Projects can join the Kusama network by either securing a parachain slot through a community-backed process known as a crowdloan or by purchasing Coretime.
Coretime is a model introduced in 2024 that allows teams to rent space on the network as needed. This lowers the cost and complexity of participating, especially for smaller developers.
Kusama uses a consensus system called Nominated Proof of Stake. Holders of Kusama’s token, known as KSM, can nominate trusted validators to secure the network.
Both validators and nominators receive rewards for participating. This mechanism ensures that the network remains secure without relying on a central authority.
All proposals and upgrades are handled through a system called OpenGov. This governance process allows KSM holders to vote on changes, fund projects, or delegate their voting rights to others. One of Kusama’s key advantages is its speed.
Decisions can be proposed, voted on, and enacted within 7 days. In comparison, Polkadot takes 28 days to complete the same process.
What Kusama Can Be Used For
Kusama is often used by projects that are preparing for deployment on Polkadot. Some of the best-known examples include:
- Karura, the DeFi version of Acala
- Moonriver, the test environment for Moonbeam
- Shiden, which preceded the Astar Network
These projects were launched on Kusama to test their technology with real users. Once they proved that their systems worked well, they launched final versions on Polkadot.
However, many teams decide to stay on Kusama permanently because of the faster development cycle and lower entry costs.
By March 2025, Kusama had more than 50 active parachains and a total value locked of $75 million. Moonriver alone had reached $85 million in value, which shows that Kusama is capable of supporting serious applications, not just short-term trials.
Kusama has also proven its strength through real-world stress testing. During an event known as the Spammening, the network processed 82,171 transactions per second.
In a later test, it reached 143,343 transactions per second using just 23 out of 100 available cores. This suggests that the full network capacity could exceed 620,000 transactions per second if fully utilised.
Kusama’s Capabilities
Kusama supports a wide range of use cases and has several important features that allow developers to build quickly and securely:
- Multiple blockchains can run at the same time, each with its structure and rules
- The network supports messaging between different chains using a system called XCM
- Developers can create application-specific chains suited to individual project goals
- Governance is fully handled by the community, with no central decision makers
- The treasury holds more than $50 million and funds development through proposals
- New technologies are introduced on Kusama before reaching Polkadot
These features make Kusama suitable for testing everything from financial tools to new forms of governance. Developers can observe how their systems behave under pressure and make changes based on live feedback.
The KSM Token
The KSM token is the main asset used throughout the Kusama network. It serves several purposes:
- Paying fees for transactions and Coretime
- Staking and nominating validators
- Voting in governance referenda
- Funding community proposals
- Bonding parachain slots
KSM is designed to be inflationary, with an annual inflation rate set at 10%. However, how that inflation is distributed depends on the staking rate. If fewer than 60% of KSM tokens are staked, the network increases staking rewards to encourage participation.
If more than 60% are staked, rewards decrease, and the remaining tokens go to the treasury. This keeps the network secure while ensuring there is enough liquidity for other activities.
As of March 2025, 12 million KSM are in circulation out of a total supply of approximately 15 million. Around 70% of this circulating supply is currently staked, indicating strong support and participation from the community.
KSM was originally distributed to Polkadot holders at a 1 to 1 ratio. The distribution was structured to support long-term growth: 30% was allocated to ecosystem development, 30% to the treasury, 20% to the team, and 20% for parachain incentives and community use.
Conclusion
Kusama provides a unique environment for blockchain development. It offers a full set of tools for creating, testing, and running applications in a live setting.
With fast governance, an active treasury, and strong technical capabilities, Kusama gives developers the freedom to innovate without the high risk or cost of launching directly on Polkadot.
It is more than a testing ground. It is a complete network with its own purpose, its own users, and its own path forward. As the blockchain world grows more complex, Kusama remains a vital space for learning what works and what does not, before those lessons are applied elsewhere.