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Web3 Foundation and Polkadot treasury motivate you to build on Polkadot

Photo of: Janeth Diamond
by Janeth Diamond

Polkadot is riding high on its popularity and is doing everything in its clout to accelerate the growth process of the DeFi ecosystem. Months after the launch of its mainnet, Polkadot has established what is called the Polkadot treasury which will be a decentralized platform meant to fund projects. It will be managed by the council members which the community will choose. The treasury will be those funds that have been collated through transaction fees and staking inefficiencies. 

Funding for projects

The Polkadot treasury has said that some teams are already submitting proposals to the treasury to make this work. The initiative will allow participants who want to take advantage of the funding to submit their spending proposals. This can be initiated by any holder of DOT. The council members who also are the custodian of the funds will have to power to approve the funding of members for project development giving more traction to the network. 

So, once the momentum reaches when there is enough feedback for a particular project the proposers of the project can deposit 5% of the total submission or 100 DOT as an anti-spam measure. The amount will be returned when the proposal gets accepted. The treasury also plans to allow the funds to be used for tipping the community for their excellent work including translating documents, writing articles and posts, supporting the Polkadot Telegram community, and educational videos.

As per the latest indications, many firms have already submitted proposals in different categories from infrastructure development to software development. The teams that will get the funding are not known yet but the treasury wants the maximum number of proposals to be funded without running out of funds. If the treasury somewhat ends without spending all funds, 1% of it will be burned meaning 1% of the treasury funds can be out for circulation every 24 hours unless they are put to use. 

Web3 Foundation to bolster further funding

Web3 Foundation of Polkadot also announced a host of funding for projects that would create infrastructure and tools for the ecosystem. It is thus implying that the future developers and users should have a great experience building on the protocol. The Web3 Foundation will begin the first of its grants program with categories for funding included being infrastructure deployment, operations projects, and software development proposals. This means that DeFi projects cannot apply as of now but teams that build interoperability like SnowFork can apply.

Redspot (testing and development environment), Centrifuge and Substrate client (API provider), Polkascan (blockchain explorer), and Encointer (identity protocol) are among the first four concerns to give their proposals to the foundation for funding. 

Even though DeFi projects have been excluded from this round, funding is not much of a problem on Polkadot. Acala in its round of seed capital raised $7 million to build its network. Yet this does not rule out the importance of infrastructure funding and laying out a robust layer of the application. The foundation’s decision to place more importance on funding this sector initially is in the best interest.