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Polkadot Treasury Report: Allocation and Expenditure Details
Explore the comprehensive Polkadot Treasury Report to gain insights into the allocation and expenditure details of funds within the ecosystem. Stay informed about how resources are utilized for the growth and development of the Polkadot network.
Polkadot Treasury Report
Polkadot, a prominent Ethereum competitor in the crypto industry, disclosed in a recent treasury report that it allocated $87 million worth of DOT for various initiatives during the first half (H1) of this year. The community representatives shared that the treasury currently holds approximately $245 million in DOT tokens for future expenditures, which is estimated to cover two years of expenses at the current market prices. This spending in H1 marks a significant increase of over 125% compared to the nearly $25 million spent in the second half of 2023.
The largest portion of the allocated funds went towards marketing and outreach activities, amounting to over $36 million. These funds were utilized for advertisements, events, meetups, conferences, and other endeavors aimed at attracting new users, developers, and businesses to the Polkadot ecosystem. Following marketing, software development costs accounted for the second-highest expenditure, with over $23 million dedicated to building essential services like wallets and toolkits to support developers. Additionally, approximately $15 million was allocated for liquidity provision and incentives on Polkadot-based trading platforms.
A detailed breakdown of each transaction is available on a publicly-viewable spreadsheet. Despite the comprehensive transparency in expenditure details, concerns have been raised within the community regarding the significant spending across various activities and the potential risk of depleting liquidity.
The report highlighted, “The Treasury has about 32m DOT (equivalent to 200m USD) in liquid assets accessible within the next year. With a current net loss of 17m DOT (approximately 108m USD) annually, this leaves approximately 2 years of financial runway assuming the DOTUSD rate remains stable. The volatile nature of a predominantly DOT-denominated treasury poses challenges in predicting the future, leading to increasing concerns within the ecosystem about the Treasury’s utilization.”