Polkadot’s treasury holds nearly $245 million, enough to spend for about two years at the current rate. Polkadot is spending directly and allocating value to rewards and collectives.
The Treasury holds $188 million in liquid assets, primarily in Polkadot (DOT), Tether (USDT), and USD Coin (USDC). In the first half of 2024, Polkadot spent $87 million, with over 40% ($36.7 million) going to advertising, influencers, conferences, and events.
Enenkel noted that concerns about the use of the Polkadot Treasury are growing as balances have been declining since mid-2023. Treasury revenue is down 58.5% from H2 2023, from 414,291 DOT to 171,696 DOT due to lower network fees. The Treasury had over 5.2 million DOT in inflation-based revenue in the first half of the year, down from 7.8 million DOT in the previous half.
Enenkel proposed giving more responsibility to the “governing bodies” in the Polkadot ecosystem, as they are taking on an important role. He also called for reducing the DOT inflation rate by 10% to reduce selling pressure, as the treasury is primarily denominated in DOT and depends on the DOT/USD exchange rate.
Read more: Polkadot is in Accumulation Phase: Can DOT Surge in June?
