"Polkadot" founder announces $774 million fund for DeFi
Image Source: Bitcoin World

“Polkadot” founder announces $774 million fund for DeFi
Wood encouraged DOT holders to submit ideas for improving the network's growth, and offered Polkadot's treasury funds as a reward.

Gavin Wood teased $774 million set to be invested in innovative projects following DOT’s recent rise, which was fueled by the announcement of Polkadot’s highly-anticipated para chain auctions.

"Polkadot" founder announces $774 million fund for DeFi
Image Source: AZ Coin News

Gavin Wood announces $774 million fund for DeFi

Polkadot, created by Wood, currently has 18,936,300 DOT in its treasury, which, according to the founder, can be used to fund anything that the network’s governance deems vital, rather than being gradually burned by the procedure.

“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,” Wood wrote on Twitter, inviting DOT holders to submit suggestions for the network’s development.

Token holders, validators, a Council, and a Technical Committee are all part of the network’s intended on-chain governance architecture.

“The DOT in the Treasury is a built-in feature of the network protocol.” Fees, slashes, and inefficient staking configurations are all contributing issues,” Polkadot’s inventor and Kusama explained where the funds come from.

“It steadily burns if it is left unused.” He went on to say that it presently burns 239,988 DOT every month. As the heterogeneous multichain architecture detailed in the Polkadot Whitepaper draws near to unraveling, the network’s first para chain slot auctions are slated to commence on November 11.

Similar para chain auctions were seen earlier this year on Polkadot’s canary network Kusama (KSM), which has since auctioned more than 10 para chains to various innovative projects in the DeFi, liquidity bootstrapping, and NFTs environments.

Speaking of Mr. Woods’ announcement, the timing of the grand reveal of the development fund is particularly interesting because Polkadot is currently preparing to hold its first set of para chain auctions, which will allow several projects to integrate with the platform and benefit from its governance, security, and decentralized mechanisms.

Following the developers’ statement that Polkadot is theoretically ready to support its initial para chains — different, specialized blockchains that will actualize the network’s breakthrough multichain architecture – the price of DOT increased by more than 16 percent in the last seven days.

Polkadot’s multi-phase launch process, which began in May of last year with the dissemination of the original, proof-of-authority version of the Polkadot Relay Chain, will conclude with the launch of Parachains.

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