Polkadot founded in 2017 by the web3 Foundation comes in the Top 10 Cryptos by market value. Its market value currently stands at $44 Billion. Polkadot’s co-founder Gavin Wood recently announced a $774 Million Development Fund for its platform. Polkadot is known for its efforts in forming a truly decentralized blockchain network. Since its launch, it has been working on launching its Parachains. And with this development fund Polkadot also announced the date for its first parachain slot auction. Polkadot’s first parachain slot auction is scheduled to be held on 11th November.
Gavin’s tweet says, “The @Polkadot treasury currently has 18,936,300 DOT (DOT, not USD – do the math). Ready to spend on *your* ideas for building, improving, educating. And indeed, anything else that the Polkadot governance believes valuable.” The value of the DOT mentioned in the tweet is $774 Million. Polkadot’s mission is to combine or connect all the private and public chains together. So that the independent Blockchains can easily exchange data and information or make transactions via their Relay chain.
What is the Fund for?
Polkadot has allocated a huge sum for the development of its platform. For adding more and more innovative features on its platform. As highlighted by Gavin in his tweet, he is directly asking the DOT users to contribute to the chain.
The DOT Fund is for bringing new and innovative features to the Polkadot platform. Polkadot’s Relay Chain is a unique idea of its committee that plans to bring all the independent blockchains together. Unlike other blockchains that only let certain nature and structure of chains to join their network. Polkadot is extensively flexible and heterogeneous. As it does not care about the nature or the structure of the chain. Its Relay chain has various parachains with different-different characteristics.
Polkadot has a completely different outlook from other cryptos. Unlike other cryptos, Polkadot is more focused on bringing much-needed changes to the crypto industry. It plans to form a truly decentralized blockchain with the primary focus on including all natures of Blockchains within its purview. And this is the reason why Polkadot has been able to make such quick success in the markets.
Polkadot is enabling interoperability between chains, regardless of their features or their status as a private or public chain. Interoperability lets diverse chains perform arbitrary messaging, including value. This interconnectivity could encompass privacy-oriented projects, forks, permissioned chains, and more. Polkadot allows all parties to take public and private chains and “plug them in” to a shared connectivity layer. Chains can choose to maintain their own validator set, or utilize Polkadot’s pooled security system to verify their transactions via the Relay Chain. Polkadot helps one chain to leverage another.
Reason behind Polkadot’s quick success
The unique features of Polkadot like parachains and its primed focus on decentralizing finance are the main reasons behind its quick success. Investors have taken a very active interest in Polkadot’s parachain plans. And now that it has announced the date for the Polkadot’s parachain slots, the value of the DOT coin is moving up every day.
These innovative and unique plans of Polkadot have helped it to make it to the Top 10 cryptos by market value, within 4 years only. It has also given substantial gains to its investors in the past few years. Polkadot’s price was fixed at $0.29 in its first ICO in October 2017. Later during the second ICO held in July 2020, it was priced at $1.25 per token. While today 1 token of Polkadot will cost you $44.5. Polkadot has given multi-bagger returns to its investors, within the last 1 year itself. And the pace at which it is growing in the markets, it may reach the top spot pretty soon.