A once so promising project remains working "on the ground". I did some digging why it's not reacting to the market, and it's mainly due to that the Polkadot community is expressing concern over the heavy spending by the project's decentralized autonomous organization (DAO). In the first half of 2024, Polkadot spent $87 million, with $37 million allocated to marketing, which some believe is excessive and poorly directed. I mean... the results shown that..it had no result. Like wtf, 87m?
Critics argue this spending is creating significant selling pressure on the DOT token markets. The DAO's treasury holds $245 million, but projections suggest that if current spending continues, it could be depleted in two years, raising alarm among community members. However, Polkadot's Web3 Foundation CEO argues that the treasury won't run out of funds anytime soon due to continuous inflows. I don't know, I love the project, but something keeps them from growing, and I feel like not getting a finger behind it.
Despite this, there is a push to reduce DOT's inflation rate to ease selling pressure, though a proposal to lower inflation was narrowly rejected. The ongoing debate highlights differing views on how Polkadot should manage its resources and market its platform. Show Less
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