Polkadot (DOT) is investing a whopping 18,936,300 DOT worth about $770 million in a new development fund for the cryptocurrency network. Co-founder Gavin Wood, also co-founder of Ethereum (ETH), revealed this on October 17 via Twitter:
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.
— Gavin Wood (@gavofyork) October 17, 2021
“The Polkadot Treasury currently has 18,936,300 DOT (DOT, not USD – do the math) ready to spend on *your* ideas for building, improving, teaching and indeed anything else the Polkadot board deems valuable. ”
Spending from the Polkadot Treasury must first be approved by the Polkadot Council. This currently consists of 13 members, but the intention is that this will soon be expanded to 24. Someone then asks Wood on Twitter where all this DOT actually comes from. He answers as follows:
“The DOT in the treasury is a natural part of the network protocol. Fees, slashes, and sub-optimal stakeout configurations are all contributing factors. If left unused, it is slowly destroyed. It currently burns 239,988 DOT per month.”
According to Wood, who would rather see the DOT used than destroyed. The Ethereum competitor recently announced that it will finally launch its “parachains” soon. The auctions for this will start in November. The news caused the DOT price to rise sharply last week. However, the above new information does not seem to release anything for now, despite the enormous amount, but almost the entire market is turning slightly red today. DOT is currently hovering around $41.
On the other hand, kusama (KSM), the little brother of Polkadot and a kind of test environment, is in the green today. The KSM price has risen by 4.5% in the last 24 hours and is at $370 at the time of writing.