Stakeholders in Polkadot’s Ecosystem Debunk Claims of Treasury Running Dry
Concerns about Polkadot’s Treasury running out of funds within two years have been refuted by stakeholders within the network. A recent treasury report raised alarms among the community by suggesting that current spending levels were unsustainable in the long run. However, several key figures have come forward to explain that the Treasury is constantly replenished by the network’s token inflation.
Ben McMahon, Ecosystem Lead at Hydration, emphasized that the Treasury does not have a fixed “runway” as it is continuously being refilled from a portion of the network’s inflation. He clarified that the funds are allocated to various activities, including marketing, liquidity campaigns, DeFi infrastructure developments, ecosystem audits, and security initiatives. McMahon highlighted the importance of DOT holders having a say in how the funds are spent through on-chain voting.
Giotto de Filippi, Chief Memer of Polkadot’s largest memecoin, DED, echoed McMahon’s sentiments, describing the Treasury as “self-sustaining” and suggesting that it could last indefinitely. He explained that the Treasury operates like a DAO, where token holders vote on proposals for various projects and initiatives.
Filippo Franchini, a technical educator at Polkadot’s Web3 Foundation, reassured the community that the Treasury holds less than 2% of the total DOT supply and that the network would remain operational even if the Treasury were depleted. However, he expressed confidence that the Treasury would not run out of funds, pointing to discussions about diversifying into stablecoins and allocating a fixed portion of DOT inflation to the Treasury.
Overall, stakeholders in Polkadot’s ecosystem remain optimistic about the sustainability of the Treasury and its ability to support the network’s operations for the foreseeable future.
