The Founder of Polkadot develops DeFi

The Founder of Polkadot (DOT) has stated that the Network is prepared to spend 18,936,300 DOT Tokens, or $774 million USD, to develop DeFi.

The Founder of Polkadot (DOT) has stated that the Network is prepared to spend 18,936,300 DOT Tokens, or $774 million USD, to develop DeFi.

Gavin Wood, the founder of Polkadot (DOT), has said that the Polkadot treasury currently has 18,936,300 DOT, which is estimated to be anywhere around US $774 million in value currently. Instead of slowly burning those DOT tokens by the Polkadot governance protocol, they can be spent on innovative ideas. Wood’s teaser comes a week after a significant rally in DOT prices following the announcement of the highly-anticipated parachain auctions in Polkadot. 

While inviting holders of DOT to suggest growth in the network, the Polkadot Founder tweeted:

"The Polkadot treasury currently has 18,936,300 DOT (DOT, not USD – do the math) in it ready to spend on *your* ideas for building, improving, educating and indeed, anything else that the Polkadot governance believes valuable."

The proposed on-chain governance system of the Polkadot network takes into account the following:

  • Holders of DOT tokens
  • Validators
  • A Council
  • A Technical Committee

While explaining the source of funds,  the creator of Polkadot and Kusama went on to say:

"The DOT in the treasury comes as a natural part of the network protocol. Fees, slashes and suboptimal staking configurations are all contributing factors."

He went on to add:

"If it goes unused, it slowly gets burned. It currently burns 239,988 DOT every month. "

Reports say that the first proposed parachain slot auctions of the Polkadot network will start on November 11, 2021. The proposed parachain slot auctions will begin as Polkadot Whitepaper’s outlined heterogeneous multichain architecture approaches unraveling. 

In the last 7-days, the price of DOT coin increased by over 16%, thanks to the announcement that the network is ready to technically support its first parachains. The diverse, specialized blockchains will help in actualizing the groundbreaking multichain architecture of the network. 

The multi-phase launch process of Polkadot will be launched with the parachains. The process began in May 2020, and the final stage will be the Polkadot Relay Chain's initial, proof-of-authority version rollout.