Unpacking Polkadot
Treasury Issues as Manta Co-founder Speaks Up
Manta Network co-founder Victor Ji called out the Polkadot (DOT) ecosystem for
unprofessional conduct at work. Kicking the horse when it is down, the
outburst comes as the community criticizes the network over futile marketing
despite a bloated budget.
As the digital asset space evolves with a focus on decentralization, community
participation in network governance becomes more vocal.
Polkadot Slammed for Workplace Toxicity
Sponsored
Sponsored
Victor Ji of Manta Network criticizes the Polkadot ecosystem, citing its
toxicity. He argues that it lacks real value for Web3, and that the DOT
network fails to prioritize users or drive adoption.
“A concrete example is the Polkadot Academy event held in Hong Kong this
February, where less than a quarter of the participants were Asian, even
though this was an event in Asia (costing over a million dollars). It was at
this event that I first encountered Gavin Wood, and when I told him I was from
Manta Network, he said he was looking forward to Manta launching its mainnet
and using it. At that time Manta had just released its token and was gaining a
lot of traction, yet he didn t even know that one of the biggest
projects in his ecosystem had launched its mainnet,” Ji expressed .
Notably, the Manta network started its journey as a Layer-1 blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн built
on Polkadot’s Substrate framework. It has since expanded its horizons to
introduce a Layer-2 solution tailored for the Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum , effectively widening
its scope and applicability.
Read More: What is Polkadot? Everything You Need To Know
Sponsored
Sponsored
According to Victor Ji, the Polkadot team is incapable, not truly
decentralized, and does not support builders on its stack. The Manta executive
joins the DOT community, which is also disappointed in the ecosystem after
revenues declined during H1 of 2024. Per the reports, Polkadot’s treasury
holds less than $245 million worth of assets, sparking longevity concerns.
“Polkadot s Treasury has about 2 years of runway left at the current
burn rate of $87m per 6 months,” wrote Ignus, co-founder at Pink Brains DeFi
creating studio, echoing Polkadot head ambassador Tommi Enenkel in the June 28
treasury report .
The revenue report shared on the Polkadot governance forum on June 28 revealed
that the project allocated $37 million to marketing in the first half of the
year. This expenditure is part of the $87 million total spent during this
period. The significant marketing investment has sparked backlash, as it
failed to achieve its primary goals, including attracting new users,
developers, and businesses to the Polkadot ecosystem. DOT Ecosystem H1
Spendings. Source: Polkadot Treasury
Why Polkadot Treasury May Not Run Dry
Despite the community concerns, Polkadot’s treasury may not deplete funds even
if it spends the $245 million worth of assets it still holds. This is because
the network sends almost 7% of the total token inflation (staking rewards) to
the treasury.
Sponsored
Sponsored
“It is slowly but steadily refilled with inflation that is split between
staking and treasury,” Polkadot activist Giotto de Filippi wrote , challenging
claims of a limited runway.
With continuous staking rewards flowing in, Polkadot’s treasury actively
finances the network through this steady revenue stream. Moreover, funneled
staking rewards allow for the alignment of incentives between users and the
project itself. Polkadot Total Value Locked ( TVL ) has increased by 5% since
June 30, DefiLlama data shows. This is likely as reports of the sustainable
financial model continue to inspire optimism.
Also Read: 5 Best Polkadot (DOT) Wallets To Consider In 2024
Björn Wagner, co-founder of Parity Technologies, the company behind Polkadot,
provided context to the ongoing debate. In a recent X (formerly Twitter) post,
he shared that both Web3 Foundation and Parity have significant financial
runway independent of the Polkadot on-chain treasury, which receives
continuous inflows.
While I personally too share the current vocal sentiment that some of
the recent treasury spending will likely have inadequate ROI, it is worth
remembering that Polkadot Governance is likely the largest and most
sophisticated DAO out there and is evolving rapidly, he wrote .
Top crypto platforms | July 2024
SunContract Explore
Exodus Explore
BYDFi Explore
Coinrule Explore
Сoinex Explore
Top crypto platforms | July 2024
SunContract Explore
Exodus Explore
BYDFi Explore
Coinrule Explore
Сoinex Explore
Top crypto platforms | July 2024
SunContract
Exodus
BYDFi
Coinrule
Сoinex
Trusted
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to
unbiased, transparent reporting. This news article aims to provide accurate,
timely information. However, readers are advised to verify facts independently
and consult with a professional before making any decisions based on this
content. Please note that our Terms and Conditions , Privacy Policy , and
Disclaimers have been updated.
