Gavin Wood’s announcement comes a few weeks before the launch of the parachain auction, scheduled for November 11.
Polkadot founder Gavin Wood announced that the blockchain platform’s treasury contains more than $ 777 million in DOT tokens, a significant amount that developers can use to build and improve the project.
In a tweet posted on Oct. 17, Wood noted that Polkadot’s treasury holds over 18.9 million DOT, or roughly $ 777 million at the token’s current price. According to him, this money can be part of a development fund that will be used to build and improve the network ecosystem.
He also suggested that the money could be used to educate the community about Polkadot and the crypto ecosystem.
According to Wood, who also founded Kusama and is a co-founder of Ethereum , the amount of DOT held in treasury is accrued from the network protocol, with DOT being received in the contract via ” fees, cuts, and setups. sub-optimal staking ”.
He added that it is best if DOT is used wisely, noting:
“ If not in use, it is slowly burned. Currently 239,988 DOTs are burned each month. “
Polkadot parachain auction
DOT is one of the cryptocurrencies that has performed exceptionally well over the past few weeks, with DOT / USD rising over 21% in the past seven days.
Much of the optimism surrounding the cryptocurrency is due to the upcoming launch of parachains, a much anticipated event that is expected to lead to an explosion in the growth of the Polkadot network.
Parachains are essentially side chains on which developers can build decentralized applications, with technology making interoperability between protocols and the “relay chain” easier, cheaper, and more secure.
Wood’s proposal could put millions of dollars at the disposal of decentralized finance (DeFi) developers, and herald a new era for the eighth largest cryptocurrency project in terms of market capitalization.
The proposal must, however, be approved by the Polkadot Governing Council, as community participation is essential to unlock funds from the treasury.