2 more years to go π₯ The Polkadot team is now facing backlash from the community after it was revealed that they have just $245M left in their Treasury, equating to just 2 more years of runway. Of that amount, only $188M is currently liquid and mostly made up of its own native DOT tokens, although the Treasury also contains stablecoins such as USDC and USDT. According to the project's 2024 H1 Treasury report, over $87M was spent, with 40% of it going towards various outreach initiatives, including expenditures for advertising, conferences, and influencers. The report also highlighted a 58.5% decrease in revenue for the Treasury due to a decrease in network fees from 7.8M DOT in 2023 H2 to 5.2M DOT in 2024 H1. Naturally, this situation sparked concerns regarding Polkadot's future, with its head ambassador, Tommi Enenkel, suggesting a decrease in the network's 10% inflation rate. Since the report was published, the price of DOT fell temporarily by 2.7% from $6.20 to $6.03 but has since rebounded to $6.42 today. Editor's Note: It's never a good thing when a project that has been in the space for 4 years is starting to run out of money. But at the end of the day, protocols are real businesses, too, and teams need to make wise decisions in utilizing their funds to better improve their protocol or network. |
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