Polkadot (DOT) stirs up the crypto community once again with a rebranding post.
On July 3, Polkadot Network’s official X account suddenly tweeted that with community permission, they would change their name to “KOLKADOT”.
community voted, we’re rebranding to KOLKADOT https://t.co/knmF5CihUl
— Polkadot (@Polkadot) July 3, 2024
The jokes are too much
Name changes are not uncommon in the cryptocurrency ecosystem. However, the lighthearted reactions to Polkadot’s post suggest that it was just a ploy to attract community attention.
Polkadot has recently come under fire for its excessive marketing spend, which may explain its desire to ease tensions in the community with such shocking statements.
Among the many challenges that this protocol is facing, two stand out and they depend on the toxic treatment from core developers in the ecosystem.
Victor Ji, founder of Manta Network, one of the largest Polkadot applications, said Gavin Wood, founder of Polkadot, was unaware of the protocol despite it ranking second in terms of non-DOT Total Value Locked (TVL).
Additionally, Polkadot has been criticized for its excessive advertising or marketing budget. Critics argue that despite spending millions of dollars on branding, Polkadot still has limited visibility compared to other competing projects with much smaller advertising budgets.
Dismissing concerns
However, Web3 Foundation and Parity Technologies, key players in the Polkadot ecosystem, have revealed their financial independence from the network’s onchain treasury.
Parity Technologies is the blockchain infrastructure behind Polkadot and the Web3 Foundation supports the network’s development through funding and research.
Fabian Gompf, CEO of the Web3 Foundation, clarified that the foundation has been operating financially for more than five years without selling DOT tokens.
It’s worth saying a few things here:
1) This is not @Web3foundation spending but on-chain treasury spending voted on by the community. The foundation has a >>5 year runway without selling a single DOT.
2) The whole notion of a “runway” for the on-chain treasury is misleading.… https://t.co/wfc34jBUSE
— fabi (@FabianGompf) July 2, 2024
Gompf continued to dismiss concerns about the treasury as misguided, noting that “the treasury has a constant inflow of money and will never run out of capital.”
However, Gompf suggested that the treasury should focus on initiatives that are not sponsored by the Foundation. He criticized recent spending on low-return activities and called on the community to vote for change.
Likewise, Björn Wagner, CEO of Parity Technologies, supports Gompf’s view. He note that both organizations have significant financial independence from the onchain treasury, which receives a constant flow of funds.
While Wagner agrees with recent spending concerns, he emphasizes that Polkadot Governance is a leading and growing DAO, with “many opportunities for those who want to participate in building this exciting future.”
Despite these troubles, Polkadot is by far one of the most innovative protocols in the rapidly evolving Web3 world today.
In a move to a brighter ecosystem, Polkadot Network has hinted at plans to replace its iconic auction system for parachains with the JAM Protocol – which was introduced by Wood earlier this year.
Itadori
Bitcoin Magazine
