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According to a report published on June 29, Polkadot’s treasury holds assets valued just under $245 million, providing approximately two years of spending at the current rate. Chief ambassador Tommi Enenkel wrote in the June 28 treasury report for the first half of 2024 that Polkadot’s treasury is becoming more complex and harder to understand.
What’s Happening on the Polkadot Front?
According to a statement by Polkadot ambassador Tommi Enenkel, Polkadot is directly spending and allocating funds for future rewards and collectives. Enenkel continued his remarks on the subject with the following statements:
“At the current spending rate, the treasury has about 2 years left, but the volatile nature of treasury bonds in cryptocurrency makes it difficult to predict with confidence. This situation has sparked various discussions, from a stricter budgeting approach to changes in the system’s inflation parameters.”
The blockchain holds $188 million in liquid assets, mostly in its native token Polkadot, as well as stablecoins like Tether and USD Coin. Polkadot experienced a significant increase in spending in the first half of the year. It spent a total of $87 million, with more than 40% going to advertisements, influencers, conferences, and events.
However, Enenkel noted that the token price reached a 2024 peak of $11.46 in mid-March, generating more hype for DOT. DOT has since fallen to $6.33 but has seen an approximate 11% increase weekly.
Details on the Subject
Enenkel noted that their balances have been declining since the middle of last year and concerns about the treasury’s usage within the ecosystem have increased. Treasury revenue fell by 58.5% from the second half of 2023, dropping from 414,291 DOT to 171,696 DOT. This was attributed to a decrease in network fees. The treasury had inflation-based revenue of 5.2 million DOT in the first half of the year, down from 7.8 million DOT in the previous half.
Enenkel proposed giving more responsibility to these executive bodies, claiming that they are increasingly creating and taking on departmental roles within the ecosystem. He also called for reducing DOT’s less-than-ideal 10% inflation rate to lessen selling pressure, as a treasury mostly in DOT derives its purchasing power from a solid DOT/USD exchange rate.
