Since its launch in May, Polkadot (DOT) announced the establishment of its ‘Treasury’ which is a new decentralized platform to fund projects according to a press release shared with AMBCrypto today. Polkadot Treasury, which is said to be a pot of funds collected through transaction fees, slashing, and staking inefficiencies, will be run by a Council, that includes members elected by the community. As per the release, some teams have already submitted proposals to Polkadot Treasury, however, the names of the teams were not disclosed.
With this move, Polkadot will now directly compete with Ethereum which also allocates funds for project development.
According to the release, the Treasury will allow participants to use the funds to submit spending proposals, which can be initiated by $DOT holders. It also planned to use the funds for tipping community members for translating documents, writing Polkadot-related articles, and for supporting the Polkadot Telegram community, among others.
In addition to this, the Council responsible for administering the funds, would also approve the funding of development projects.
The release further detailed that participants who want to submit their proposals to the Treasury for approval would need to find an off-chain way to explain what the proposal is about – to minimize on-chain storage. These participants can discuss their topics on the ‘Polkassembly’ forum and share the details of their proposal with the Council members. Following this, if the Council shares enough feedback for the proposed project, participants can proceed to deposit 5% of the total submission or 100 DOT as an anti-spam measure. This Council will return this amount once they accept the proposal.