Gavin Wood, the founder of Polkadot, has recently unveiled a development fund of $777 million ahead of the latest parachain lease auctions. Wood spoke about this in a tweet on Sunday, where he mentioned that the treasury of this altcoin had accrued more than 18,9 million DOT to a development fund that would see itself being disbursed through community governance.
Wood further gave broad suggestions as to how the funds would end up getting spent- where he elaborated that the capital would end up being mobilized to realize the vision of the community for the improvement, and education of the ecosystem of this altcoin.
Polkadot Climbing The Ranks
According to the Wikipedia entry on Polkadot, the funds of the treasury can be spent if they have been approved by the council- which ends up voting on proposals that are put towards them. The council of this altcoin- at the moment- has 13 members, but the council is planning on expanding them to 24 seats in the near future.
Most of the stakeholders that have been inching towards putting out a proposal must end up reserving a deposit of at least 5% of the proposed spend- along with the deposit either being cut through if rejected, or returned if they are accepted.
The latest fund for development was unveiled just a few weeks before Polkadot’s highly anticipated parachain auctions. These auctions are scheduled to be organized in the early stages of November, which suggests that the funds could entirely be intended to push the development that has been targeting the ecosystems of this altcoin.
The existing relay chain of Polkadot entirely depends on transfers, governance, and staking services for the network of this altcoin- with the major forthcoming parachains being tasked with providing far superior features such as cross-chain compatibility as well as smart contract functionality.