Cheap transactions - The price per transaction in the Moonriver blockchain is around 0.01 USD
Fast governance system - For testing purposes, there is a fast governance system
EVM - The compatibility with Ethereum makes Moonriver a good choice for developers who are familiar with the Ethereum ecosystem

Weaknesses

Testing blockchain - Moonriver will always be a test network for Moonbeam and therefore there is less emphasis on security
Slow transactions - Moonriver can handle 0.4 TPS

Basic Information

Moonriver is a blockchain environment that operates on the Kusama network as a "canary network." This concept of a "canary network" is used to test new code and functionalities before deploying them on the main blockchain. In the case of Moonbeam, designed for the Polkadot network, Moonriver serves as a means to verify and test new smart contracts and applications.

The Moonriver blockchain provides an implementation of EVM (Ethereum Virtual Machine) as it allows for the migration of Ethereum-based smart contracts into the Kusama environment. It also enables the creation of bridges within the network that can be used for state visibility, token transfers, and facilitating communication processes between different chains. The Moonriver platform also allows for various integrations through its Web 3.0 compatible API feature. Developers and projects can easily connect their applications and services to the Moonriver blockchain and leverage its functionality. This Web 3.0 compatibility opens up broad possibilities for developing new applications and utilizing the features of the Moonriver blockchain.

Moonriver came into existence through the efforts of the Moonbeam Foundation and PureStake. The Moonbeam Foundation is a foundation that focuses on the development and support of blockchain technologies and decentralized applications. Its goal is to create an environment where developers and projects can easily harness the benefits of the blockchain environment and contribute to the development of innovative solutions.

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Functioning of the Chain

Moonriver is a decentralized open-source blockchain compatible with the Ethereum blockchain, using substrate framework, and having Web 3.0 RPC integrated API with Ethereum. The interoperability ability is from the Parachain protocol of Kusama. The Parachain consensus mechanism is Proof of Stake (POS).

Moonriver is a "canary network" for Moonbeam, which means that these two blockchains operate in exactly the same way. The only difference is that new features and designs must be implemented and tested first on Moonriver.

Moonriver has the same number of collators as Moonbeam, which is 72. Collators create blocks that are then sent to validators on the relay chain for finalization.

The difference between these networks arises in the speed at which changes can be made on Moonriver, and that's due to one simple reason: it is a test network where greater emphasis is placed on efficiency and speed rather than security.

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Minimum Gas price

Moonriver

Moonbeam

Here, the difference in the minimum gas price is evident, and that's because on Moonriver, being a testing network, it's necessary to perform as many transactions as possible to test a given update. Setting high fees would be illogical in the context of a testing environment.

‍Governance

Moonriver

Moonbeam

Here, we can already see some key differences between the two blockchains: the voting period, which is shortened from 14 days to 5 days, and the minimum deposit, which, despite different tokenomics, significantly differs in dollar value (as of June 9, 2023). If you were to submit a proposal on Moonbeam, you would need approximately 104 USD, while on Moonriver, approximately 23 USD would be sufficient. This functionality is present here to meet the needs of testing and expediting the deployment of various changes.

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Staking

Moonriver

Moonbeam

These changes in the minimum staking amount and the duration of one round are another example of how Moonriver focuses on testing and expediting the process of deploying changes. By reducing financial barriers and shortening time cycles, Moonriver brings greater flexibility and efficiency to users participating in the network.

TIP
Since February 2023, Moonriver has been testing a new version of governance called OpenGov2 (Gov2). This mechanism was introduced with the aim of improving and enhancing the governance process on the blockchain. During testing, thorough verification and tuning of OpenGov2 features are carried out to ensure its smooth operation and benefits for the community.
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After successful testing on Moonriver, OpenGov2 will also be introduced to Moonbeam. This will ensure that both blockchains have access to an enhanced governance mechanism and can take advantage of the benefits that this new system brings. The open and transparent governance process supported by OpenGov2 will enable active community participation, precise proposal formulation, and decision-making in line with the needs and desires of users.
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This proposal for a Governance mechanism originates from the Polkadot blockchain and brings the following enhancements:
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- Decentralization: The aim of OpenGov2 is to further decentralize the governance process by transferring all Council responsibilities to the public through a system of direct democratic voting. This means that all proposals are initiated by the public, making the system more democratic
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- Multiple Referenda: Unlike the previous system, where only one referendum could be voted on at a time, OpenGov2 allows for multiple referenda to be voted on simultaneously. This increases the number of collective decisions that the system can make at any given moment
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- Delegation: OpenGov2 introduces the delegation of multiple roles, where a token holder can assign voting rights in various tracks to different entities that are experts in assessing referenda submitted to these tracks. Token holders can thus ensure that their votes are counted, even if they do not have the technical background to assess the substance of the referendum and vote on it themselves, through delegates
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- Security: OpenGov2 is designed to prevent the execution of harmful decisions. When the network is decentralized, control mechanisms are installed that prevent bad actors from taking control of the majority of votes
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- Transparency: All decisions in OpenGov2 are made on-chain, making the governance process transparent and accessible to all token holders

Development History

2021

- June - Preliminary registration for the Moonriver Crowdloan launched with support from Kraken and Kucoin

- August - Moonriver blockchain launched on Kusama

- September - Moonriver Decentralization Vision unveiled

- December - Moonriver integrates Chainlink Price Feeds into its ecosystem

2022

- January - Cross-chain capabilities launched and XC-20 tokens added to the Kusama ecosystem

- March - Moonriver Grant Hackathon launched, distributing 150 000 USDC

- November - Moonriver begins supporting Auto-Compounding of Staking Rewards

2023

‍ - February - OpenGov2 launched

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TIP:
In February 2022, an attack occurred where reserves of Meter's BNB and wETH were drained and sold on the SushiSwap platform. This incident caused a sharp 77% drop in the price of BNB on Moonriver. As a result, some individuals took advantage of the low BNB price and used it as collateral on the Hundred Finance platform to borrow ETH, FRAX, and MIM. However, due to the price difference in BNB, the value of the loans exceeded the collateral value, leading to a market crisis. The demand for collateral exceeded the supply, and the system was disrupted. This incident highlighted the importance of robust security and monitoring of financial flows, demonstrating the vulnerability of the system to abuse and speculation.

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Team

The main team in charge of improving the Moonriver blockchain is PureStake.

Derek Yoo - CEO

Stefan Mehlhorn - COO

‍Tim Baldwin - VP of Engineering

Francisco Gamundi - Software Engineer

The PureStake team consists of a total of 32 individuals who are experienced in building global technologies and infrastructure for some of the fastest-growing companies in the world. The team members have a track record of managing and overseeing a wide range of projects, including data centers, networks, and numerous “as-a-service” platforms for stringent companies’ security and availability requirements.

The team actively contributes to the development and DevOps practices used in leading cloud service platforms, mobile payment platforms, and applications worldwide. This collaboration allows for deep knowledge and understanding not only of technical aspects but also of the business and strategic challenges our clients encounter.

Governance

The native token of the Moonriver blockchain is MOVR, which is used for:

Staking
Pay for transaction
Governance participation

In February 2023, OpenGov2 was deployed on Moonriver for testing before its deployment on Moonbeam, which currently uses Gov1.

OpenGov2 is a mature version of Polkadot Governance v1 that enhances the democratic process of approving proposals. The level of importance for each proposal is determined by the amount of time and participation required for its approval or rejection.

The improvements in governance compared to version 1 include changes and adjustments within the original principle of Polkadot's governance, which allows token holders with sufficient conviction to influence the future of the system. The Council and Technical Committee are replaced with community-driven pathways for proposals and the creation of a community.

OpenGov2 also brings changes to referendum proposals, their approval, organization, and cancellation processes. One of the major changes that comes with the removal of the existing Council and Technical Committee includes transference of full control to the community through proposal pathways and the creation of the Community.

These changes in the approval process bring greater transparency, facilitate the leadership and approval of proposals by the community itself. Overall, OpenGov2 aims to ensure that important proposals are decided with sufficient participation and time requirements while minimizing the concentration of power in Polkadot's governance.

All voting and proposal submissions are managed in Polkadot.js. There, you can submit a proposal or vote on existing ones. Anyone can submit a proposal, and it will cost you approximately 15 MOVR.

You can find a guide on how to successfully submit a proposal here.

Revenue & Tokenomics

Moonriver blockchain, also known as the "canary network," is funded through its own resources. It also has various sources of funding to support its protocol, including token sales, grants, and partnerships with other organizations. To ensure the sustainability of the Moonriver network, a fee model has been introduced for certain operations such as deploying smart contracts or conducting transactions.

These fees are paid in MOVR and contribute to the development and maintenance of the protocol. Every user who performs operations on the Moonriver blockchain pays these fees, which contribute to funding the network's growth and sustainability. With increasing usage and monetization of network usage and services, the Moonriver blockchain has the potential to generate income and secure its long-term viability.

Initial allocation of MOVR

The original allocation in 2019 was 10 million MOVR

40% (4,000,000) - Community Initiatives and Parachain Slot Reserve
30% (3,000,000) - Parachain Crowdloan
24,5% (2,450,000) - Long-Term Network Stewardship & Adoption
4,5% (450,000) - Developer Adoption Program
0,5% (50,000) - Parachain Bond Reserve
0,5% (50,000) - Treasury

Community Initiatives and Parachain Slot Reserve

Tokens allocated for securing future Kusama parachain slot leases play a crucial role in supporting the network's further development. These tokens are intended for ongoing parachain slot occupancy, meaning they contribute to funding additional leases and ensuring network stability and sustainability.

Furthermore, these tokens are also utilized to support various community initiatives. For instance, they are used to provide liquidity incentives that motivate users to contribute liquidity and enhance ecosystem functionality. They are also utilized for granting strategic program rewards to those who bring forth innovative ideas, which naturally lead to network growth.

Parachain Crowdloan

These funds were provided to acquire the necessary KSM (Kusama) for a crowd loan during the Kusama parachain auction, specifically for the initial 48-week lease. This measure was employed as a means of distributing tokens for Moonriver. Upon the launch of the Moonriver parachain, 30% of the tokens will be immediately distributed among the crowd loan contributors, while the remaining 70% will be gradually distributed on a weekly basis throughout the duration of the lease (48 weeks).

Long-Term Network Stewardship & Adoption

Tokens under the control of the Moonbeam Foundation play a crucial role in funding and supporting the adoption of the Moonbeam network and its ecosystem. These tokens are intended for financing various initiatives and network needs that are vital for maintaining and advancing the Moonbeam ecosystem.

Developer Adoption Program

Supply that will be used in the short term for project and platform adoption and practical needs. These are matching funds for the Moonbeam developer adoption program.

Parachain Bond Reserve

The funds intended for parachain bond purposes represent a strategic fund that serves as a reserve to secure a parachain slot indefinitely. This fund is financed through a portion of the supply inflation, and its main objective is to gradually accumulate sufficient assets to ensure the continuous availability of the parachain slot.

Treasury

On-chain governed funds represent an approach to managing and spending resources that ensures transparency and decentralization. These funds operate through on-chain governance mechanisms, utilizing weighted tokens. This means that all fund expenditures are carried out directly on the blockchain and are governed by the community.

The MOVR inflation mechanism

The goal of inflation in the Moonriver network is to cover the ongoing security requirements of the network. The primary budget allocation for security focuses on ensuring the continuous provision of the parachain slot and motivating collators to provide collator services, thereby ensuring smooth network operation for Moonriver. The system aims for an annual inflation rate of 5%, with approximately 1% allocated for collator incentives and approximately 1.5% allocated to the parachain bond reserve. The reserve accumulates funds on-chain to permanently secure the parachain slot indefinitely. The remaining portion, approximately 2.5%, is designated for users who stake their MOVR and contribute to the collator selection process.

The issuance of inflationary tokens can be adjusted over time based on various factors such as changes in parachain block times, network conditions, performance fluctuations in the relay chain, runtime errors, and other relevant factors.

Transaction Fees - Transaction fees and smart contract execution fees on Moonriver are governed in two ways.

First - 80% of the generated fees are burned, creating a deflationary effect
Second - 20% of the fees are directed to the on-chain treasury, which can be allocated through on-chain governance to support projects and initiatives

The Uniqueness of the Chain

Moonriver shares the same original intent as Kusama - to function as a "Canary Network'' or a warning system that raises an alarm about potential issues before deploying code on Polkadot. Specifically, Moonriver serves as a "canary in the coal mine" that proactively reveals any potential flaws and warns against risks. In practice, this means that code is initially deployed on the Moonriver blockchain, where it undergoes testing and scrutiny for both functionality and more challenging-to-predict scenarios of abuse and manipulation. This enables developers on the Moonriver blockchain to have rapid iteration and simultaneous evaluation of real-world use cases on a live and significant version of the network. This approach allows for valuable experiences to be gained and swift feedback from the real world before the actual deployment on MoonBeam.

Therefore, Moonriver allows for the testing and optimization of code in real-world operation, adapting it to the users' needs. Through this approach, Moonriver creates a secure platform that transitions from MoonBeam and is expected to encounter minimal issues when implementing new updates.

How the Network is Secured

The security of Moonriver is ensured by Kusama validators who finalize blocks and send them to the Kusama relay chain. Moonriver has 72 Collators responsible for block production, which they send to the validators of the relay chain. Collators are selected by a consensus algorithm called Nimbus, which employs a two-tiered approach:

The first tier consists of a parachain staking filter that selects an active pool of collators based on their stakes
The second tier adds an additional filter that limits the number of collators for each slot

Nimbus is capable of answering the question of which collators are eligible to produce a parachain block in the next available slot. This block is then marked as the best using the Cumulus consensus and incorporated into the relay chain using the hybrid consensus of BABE and GRANDPA, which are utilized by Kusama.

Bug bounty

Since December 2021, a bug bounty program has been launched for the Moonriver and Moonbeam blockchains in collaboration with the Immunefi platform. The program aims to identify and uncover security vulnerabilities and weaknesses in both blockchains. The bug bounty program is open to the public and invites researchers, developers, and security experts from around the world to contribute to the network's security by discovering potential vulnerabilities.

Participants in the bug bounty program have the opportunity to report discovered security bugs and vulnerabilities and receive financial rewards. The program focuses on identifying and fixing issues that could jeopardize the security and reliability of the Moonriver and Moonbeam blockchains.

Rewards:

Blockchain / DLT

Critical - Up to 1,000,000 USD
High - Up to 50,000 USD
Medium - Up to 20,000 USD
Low - Up to 5,000 USD

Websites / Applications

Critical - Up to 15,000 USD
High - Up to 7,500 USD
Medium - Up to 2,500 USD
Low - Up to 1,000 USD

Nodes

Collator Node

To participate in block production, you need to have a running full node, and then you can connect as a Collator and create new blocks that will be distributed to the validators of the Kusama relay chain. To set up a Collator node, you will need 10,000 MOVR.

Hardware Requirement

CPU - 8 core
RAM - 32 GB
SSD - 1 TB
Network - 24/7 online

To start the Collator node use this guide.

Benefits

Reward for newly created blocks
Delegation fees
Network security

Delegation

Candidates for collators (and token holders if they delegate) have a stake in the network. From the top candidates based on the size of their stakes, a selection is made to create blocks with a valid set of transactions. A portion of the reward for each block goes to the collators who created the block, and they share it with their delegates based on their percentage contribution to the collator's stake. This incentivizes network members to stake tokens and increases overall security.

On the staking page, you can choose a collator to delegate your MOVR tokens to. A minimum of 5 MOVR is required for delegation. Rewards for delegation are paid out with a two-round delay, with each round lasting 2 hours.

Once you have selected a collator and made a delegation, you will start earning rewards for your contribution. These rewards will be paid out with a certain delay, meaning that you will not receive rewards immediately but after the completion of two rounds, which amount to a total of 4 hours. After this time period, you will be entitled to your share of the rewards, which will be automatically disbursed to you.

The size of your delegation reward depends on the amount of MOVR you have delegated and the overall size of the delegated fund. The larger your share in the fund, the larger your rewards will be.

Benefits

No hardware needed
Minimum amount for delegation 5 MOVR
Rewards from Collators

Delegation

The size of your delegation reward depends on the amount of MOVR you have delegated and the overall size of the delegated fund. The larger your share in the fund, the larger your rewards will be.

Benefits

No hardware needed
Minimum amount for delegation 5 MOVR
Rewards from Collators

Road Map

At the time of writing this article, there is no specific long-term plan known for Moonriver. PureStake has several ongoing implementations that it plans to gradually deploy on Moonriver, but none of them have a set timeframe.

However, tests are presently (as of July 2023) underway with the OpenGov2 project with the goal of preparing it for deployment on Moonbeam. Although precise information about future plans remains unavailable, testing and incorporating such projects indicates an effort to expand the functionality and usage of Moonriver in various areas, which could bring interesting prospects for the network's future. We will closely monitor the development and further updates regarding plans for Moonriver and its further growth.

There are proposed enhancements for Moonriver:

ERC-20 Bridging for Moonriver and Moonbeam - The main idea of this proposal is to transform all existing ERC-20 tokens on Moonriver into transferable tokens that can be moved to other parachains through a special palette or XCM precompile
Remote EVM execution for Moonriver and Moonbeam - This proposal opens up new possibilities for remote execution of the Ethereum Virtual Machine (EVM) on Moonriver and Moonbeam. The main idea is to implement the Ethereum XCM palette in Moonriver and Moonbeam, which serves as an intermediary between XCM execution and the EVM ecosystem

Ecosystem

Moonriver has over 40 active projects in its DeFi ecosystem.

The three largest among them are:

Moonwell Apollo - Lending
Solarbeam - Dex
House of Rome - Reserve Currency

The Moonbeam Foundation operates a Grant program for both Moonriver and Moonbeam.

Funding project initiatives for their launch, adoption, and overall growth within the Moonbeam / Moonriver network is provided through the grant program. This program represents a multi-tiered financing structure designed to support various types of projects within the ecosystem and contribute to strengthening Moonbeam / Moonriver as a leading destination for cross-chain connected applications.

Community

Discord is shared for both Moonbeam and Moonriver. The administrators have made efforts to organize different sections to ensure clarity and easy access to information. Additionally, active moderators contribute to creating a welcoming first impression by promptly responding to queries and striving to address issues or suggest alternatives, usually within minutes. This interaction ensures that the community feels supported and has the opportunity to obtain necessary information or assistance in real-time. Discord serves as a live communication tool, enabling the community to engage in discussions, share ideas, and collaborate on the development of the Moonbeam and Moonriver ecosystems.

Moonriver has its own X (Twitter) account separate from its main sibling Moonbeam. It boasts a significant number of followers, indicating a high level of user interest. This account presents various updates from the ecosystem, retweets mentions of the Moonriver blockchain, and hosts AMA (Ask Me Anything) sessions with different developers working on dApps for the Moonriver blockchain. Twitter serves as a prominent platform for information sharing, discussions, and interaction with the Moonriver community, providing an opportunity to engage, stay informed, and communicate with the development team.

The community forum is again associated with the Moonbeam blockchain and serves as a space for discussing proposals, changes, and the development of the Moonriver blockchain. This forum is open to the public and represents an important tool for community engagement and the sharing of ideas and perspectives. Live discussions take place here regarding technical aspects, new features, enhancements, and other Moonriver blockchain-related topics. The community forum is an environment where users can present their proposals, receive feedback from other community members, and actively participate in shaping the future of Moonriver. It is a crucial platform for collaboration and coordination, helping to strengthen community participation and ensure that user voices are heard in decisions regarding the further development of the Moonriver blockchain.

Partners

Investors

Partners

Where to Buy

When buying on DEX, only one is currently functioning:

Solarbeam

When making a purchase on a cryptocurrency exchange (CEX), it is always important to verify whether it supports MOVR. Currently ranked at the 465th position in the list of top cryptocurrencies, not all major CEXs may support it.

For example:

Supported Wallets

Ledger Nano X - The most widely used hardware wallet on the market. When paired with your software wallet, you gain greater security for your cryptocurrencies.

MetaMask - Software wallet

Rabby - Software wallet

Analyst Opinion

Moonriver serves as a testing blockchain for Moonbeam, which can be seen as both an advantage and a disadvantage. As a fully functional blockchain, it develops its own ecosystem independently from its main counterpart, Moonbeam.

One of its main advantages is the cost-effective management of the entire blockchain. With faster updates and lower operational costs, it may be more attractive to some compared to its sibling. Moonriver provides users with the opportunity to test new features and experiment with applications and smart contracts on the Moonbeam blockchain without significant expenses or risks.

However, this speed and reduced costs can also be a disadvantage as they may compromise the emphasis on security. Potential attackers could exploit vulnerabilities that do not exist on Moonbeam. It is important to note that Moonriver is a testing network and does not have the same level of scrutiny and security measures as Moonbeam. This means that developers and users should exercise caution when transferring or storing value on Moonriver.

Therefore, before engaging with this blockchain, it is crucial to carefully consider the level of diversification you desire within this ecosystem. It is advisable to evaluate whether you want to limit your investments and activities solely to Moonriver or if it is appropriate to include other blockchains in your portfolio. Diversification can help minimize risk and ensure the stability of your cryptocurrency investments. Each blockchain has its own advantages and disadvantages, and it is important to study and understand their characteristics thoroughly before any engagement.

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