The founder of Polkadot (DOT), Gavin Wood, has revealed a $777 million development trust before the network’s parachain lease auctions.
Wood tweeted on Sunday that Polkadot’s treasury has assigned nearly 19 million Polkadot (currently worth about $777 million) to a development trust that will be paid out by community governance.
Wood offered broad tips on how to spend the funds’ money. He specified the funds could fulfill the community’s vision for “building, improving, educating” Polkadot’s society and “anything else that the Polkadot governance believes valuable.”
As reported by Polkadot’s Wiki, treasury funds could be used for proposals that the council approves. The now 13-member Polkadot council intends to increase its numbers to 24 seats in the near future.
With several Polkadot administrative votes having seen little past community participation, the development trust could boost DOT holders’ involvement with the governance process. According to Polkassembly, three proposals advanced this week have seen voter turnouts of zero, 6, and 7 votes, respectively.
The brand-new development trust was disclosed just weeks before Polkadot’s anticipated parachain auctions, starting in early November. This suggests that the intent of the funds is to stimulate growth, focusing on Polkadot’s upcoming parachain ecosystem.
Polkadot’s parachain auctions will be used to produce Polkadot’s foresight for a sharded ecosystem. The auctions will see campaigns building on Polkadot battle to obtain one of the 100 parachain slots by bidding to lock up DOT.
Parachains are Polkadot’s sharded side-chains that can hold decentralized protocols and applications, provide specialized computation, and connect with Polkadot’s proof-of-stake Relay Chain to settle deals.
Polkadot’s existing Relay Chain specifically processes governance, transfers, and staking solutions for the Polkadot network. The forthcoming parchains provide sophisticated functions such as smart contract functionality, as well as cross-chain compatibility.
As such, the new development trust perhaps will encourage developers to begin creating on Polkadot to prepare for parachains going live.
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