Gavin Wood has Announced a $774 million Development Fund for DeFi
Polkadot, the world’s eighth-largest blockchain by market capitalization, has seen its fortunes change for the good since the month began. A few days ago, DOT witnessed a dramatic price increase. Experts believe this is all tied to the incredible events being anticipated within the community, and Polkadot still has some exciting news for its followers.
Gavin Wood, the founder of Polkadot (DOT), has announced a $777 million growth fund ahead of the community’s para-chain leasing auctions. In a recent tweet, Wood noted that Polkadot’s treasury had set aside more than 18.9 million DOT, which is about $777 million, for a growth fund that can be distributed under group governance.
Building and Education
The Polkadot founder outlined explicitly how the newly raised funds could be used, indicating that they would be used to realize the group’s vision for building, expanding, and teaching the Polkadot community, as well as anything that the Polkadot governance believes is beneficial.
He wrote, “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.”
Funds to Boost the System
Furthermore, The treasury monies can only be spent if the council approves them, The Polkadot council now has 13 members, but it intends to grow to 24 seats in the future.
With low group participation in several Polkadot governance votes so far, the event fund could be used to boost DOT holders’ engagement with the governance process. According to Polkassembly, three governance ideas t t were put forward this week received zero, six, and seven votes, respectively.
The recently announced funds come just weeks before Polkadot’s highly anticipated parachain auctions, which are set to begin in early November, which shows the ambition of the Polkadot team to use the cash to jumpstart development for the upcoming parachain ecosystem.
Polkadot’s Parachain Launch
Polkadot’s parachain auctions will be used to build the sharded environment that Polkadot envisions. Also, Projects being developed Polkadot will compete in the auctions to secure one of the 100 parachain spaces by bidding to lock up DOT.
Polkadot’s c side-chains, known as parachains, can host decentralized apps and protocols, perform specialized computing, and connect with Polka Dots proof-of-stake “Relay Chain ” to complete transactions.
Currently, Polkadot’s relay chain handles just transfers, governance, and staking services for the Polkadot network, while the next parachains will handle advanced capabilities like smart contract functionality and cross-chain compatibility.
As a result, the new growth fund may be intended to incentivize developers to begin building on Polkadot in advance of parachains going live.