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Polkadot Launches $770 Million Development Fund

UTC by Oluwapelumi Adejumo · 2 min read
Polkadot Launches $770 Million Development Fund
Photo: Depositphotos

The revelation of the development fund came weeks ahead of the network’s highly anticipated parachain auctions.

News emanating from Polkadot has indicated that the project is working on its development, as a Twitter announcement by its founder Gavin Wood revealed a $777 million development fund. This came ahead of the network’s parachain auctions.

This indicates that the project would fund the said development fund using the nearly 19 million DOT (equivalent to $777 million) in its treasury, and it would be disbursed via community governance.

In the tweet, Wood hinted at the areas that the development fund would cover. The fund is expected to support some of the community’s vision, such as building, improving, and educating the Polkadot ecosystem, plus other valuable beliefs of the Polkadot project.

While Polkadot proposed to fund the development using the over 18 million DOT in its treasury, this proposal is dependent on the council’s position, which currently consists of 13 members. Their voting pattern would determine if the fund would be spent.

The network’s proposed on-chain governance system considers token holders, validators, a Council, and a Technical Committee.

“The DOT in the treasury comes as a natural part of the network protocol. Fees, slashes, and suboptimal staking configurations are all contributing factors,” the creator of Polkadot and Kusama explained.

Polkadot Parachain Auction Is Coming

The revelation of the development fund came weeks ahead of the network’s highly anticipated parachain auctions, indicating it could be targeting the development of the Polkadot Parachain ecosystem.

Parachains are sharded side-chains of Polkadot. They host decentralized applications and protocols, plus offer specialized computation and communication with the Project’s POS. Its auction would see some projects building on Polkadot, competing to secure a position among the 100 parachain slots.

Following its announcement days ago, DOT’s price rose. The news that Polkadot is technically ready to support its first parachains – diverse, specialized blockchains that will actualize the network’s groundbreaking multichain architecture sent DOT up by more than 16%.

As it is set to go live in November, it would mark the last stage of Polkadot’s multi-phase launch process that started in the previous year.

Analysts have predicted that Acala network could be the first parachain slot on the network. This is because Karura network, the deployment of Acala on Kusama won the first parachain auction by a landslide in June.

Blockchain News, Cryptocurrency news, News
Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

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