Polkadot treasury holds $245M but faces revenue decline and two-year runway

The Polkadot Treasury holds assets equivalent to 38 cardinal DOT, worthy astir $245 million. Head Ambassador Tommi Enenkel, popularly known arsenic Alice and Bob, shared a caller study providing the latest update connected the network’s treasury.

This equilibrium equates to astir 2 years of the runway astatine its existent spending rate. The study stated:

“At the existent complaint of spending, the Treasury has astir 2 years of runway left, though the volatile quality of crypto-denominated treasuries makes it hard to foretell with confidence.”

Polkadot’s archetypal six months of spending

During the archetypal six months of this year, Polkadot invested heavy successful its ecosystem, spending 11 cardinal DOT, valued astatine astir $87 million, crossed assorted projects.

According to the report, the web invested astir $37 cardinal successful Outreach activities specified arsenic advertisements, sponsorships, and events. The web signed sponsorship deals with race car operator Conor Daly and besides pushed respective marketing activities designed to bolster the network’s adoption by the broader planetary community.

Polkadot besides spent $23 cardinal developing its web features and upgrades, including SDK, Data Services and Indexing, Governance, and Subwallets.

Moreover, the web invested $15 cardinal successful liquidity incentives and $5.5 cardinal successful Talent and Education. Additionally, it spent $3.8 cardinal to support the web and halfway ecosystem components, and different $2.1 cardinal went towards Research.

Revenue decline

The study highlighted a diminution successful Polkadot’s revenue. During the archetypal six months of the year, the network’s full net dropped to 171,696 DOT from 414,291 DOT, recorded successful the 2nd fractional of 2023.

Enenkel attributed this diminution to the important driblet successful web fees, which fell from 313,443 DOT past twelvemonth to 39,444 DOT successful the 2024 archetypal half:

“We spot that nonstop gross from fees is inactive marginal. Polkadot made 300k DOT from fees successful 2023-H2 from a short-lived inscriptions campaign. Fees nether regular conditions are beauteous unchangeable with astir 20k DOT per quarter. Other sources of gross are typically transfers from accounts that instrumentality funds that they received and wage them backmost for assorted reasons.”

The station Polkadot treasury holds $245M but faces gross diminution and two-year runway appeared archetypal connected CryptoSlate.