Polkadot announces $770M funding as auctions are about to launch


TL; DR Breakdown

  • A $776M development fund has been revealed as DOT’s parachain auctions are soon to launch.
  • The funds could push inventors to invest in the Polkadot network.

Polkadot (DOT) CEO Gavin Wood and co-founder of Ethereum has disclosed a $776M development fund. Wood revealed this as the network plans to launch network’s long-awaited parachain process. When the auctions are launched next month, projects will get an opportunity to build on DOT’s cryptocurrency network. The company has not revealed whether the money could boost the upcoming project targeting Polkadot‘s future parachain ecosystem.

On Oct. 17th, the founder said that  Polkadot’s treasury had assigned almost 19M DOT (roughly $776M) to a development fund. Through Twitter, he noted that Polkadot would utilize the funds in administration towards the community.

Supporting projects in Polkadot’s governance

Wood believes the $776million could cater for any projects that the company finds significant. He speculates that the capital pushes towards achieving the community’s insight for “structuring, enhancing, training” the network’s structure. The network would also channel the money to other essential projects.

Polkadot’s Wiki says the network could allocate treasury funds to projects after the council’s approval. The board has to decide by voting on proposals submitted to them. Presently, the DOT’s council has under 15 members. However, the council intends to increase this number in the future by adding more than ten seats.

The network’s governance votes have experienced meager participation from the public. Thus they may allocate the capital to support the network’s holders’ commitment to the regime.

The company presented governance proposals a few days ago. However, the Polkassembly noted that they had observed meager votes, which was unexpected.

Stakeholders can propose by booking a minimum of 5% of the figure suggested. The stake will go through a burning technique if DOT rejects the proposal. Upon approval, the deposit will be returned. Since funds can be jeopardized in case of a failed vote, Polkadot’s slashing concept could go between the upcoming regime’s commitment on the mainnet.

Polkadot’s  auctions

The upcoming DOT parachains are essential in enacting multichain interoperability. The launch will ensure the network’s vision for an extensive ecosystem comes to pass. The auctions enable projects to build on the network. Developers will have to get one of the parachain positions through bids to be part of DOT. The slots are limited to 100.

The DOT community approved the proposal for parachain auctions. Web3 Foundation member Joe Petrowski forwarded the proposal to the network’s community governance discussion platform, polkassembly.io. He praised Kusama’s parachains and Parity’s public assessment, noting that Polkadot is ready to move to the next stage. The development fund could entice developers to start building on Polkadot while waiting for parachains to go live next month.

Edith Muthoni

Edith Muthoni

Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, cryptocurrencies, blockchain, and cryptocurrency investments.

Related News

Hot Stories

Bitcoin, Ethereum, Polygon, and Ethereum Classic Daily Price Analyses – 8 August Roundup
Avalanche price analysis: AVAX continues to trend upwards near $30 decisive price point
Dogecoin price analysis: DOGE swiftly retraces to $0.07, more upside tomorrow?
How to stake Verasity (VRA): What's the 2,500,000,000 reward capacity?
Singapore’s crypto lender Hodlnaut shuts down

Follow Us

Industry News

Singapore’s crypto lender Hodlnaut shuts down
Celsius withdraws motion to rehire CFO at $92,000 a month
Crypto.com earns license of operation in South Korea
Elon Musk drags Twitter to court for fraud
Binance CEO Urges To Move Funds From WazirX To Binance