Gavin Wood, the 41-year-old founder of Polkadot has revealed plans to invest around $774 million (roughly Rs. 5,800 crores) in developing the open-source crypto network. To fund the development, Wood plans on using the idle native tokens of Polkadot (DOT) — that have registered some growth in recent days. As per the Gadgets 360 crypto price tracker, Polkadot is currently trading at $1,009 (roughly Rs. 3,246) on October 20. In a tweet, Wood revealed that presently, 18,936,300 DOT tokens are lying idle in the Polkadot treasury.
These tokens could have been “burned” or pulled out of circulation, but instead, Wood plans to use them to further grow the Polkadot architecture. The founder has also hinted that the changes to the network will be based on the ideas suggested by Polkadot investors and supporters.
“The DOT in the treasury comes as a natural part of the network protocol. Fees, slashes and suboptimal staking configurations are all contributing factors. If it goes unused, it slowly gets burned,” Wood explained on his Twitter thread.
As per the founder, Polkadot usually burns 239,988 DOT tokens every month that amounts to over $10 million (roughly Rs. 75 crores).
The public reaction to Wood's tweet seemingly supported his idea of using idle DOT tokens to grow the network.
Wood's announcement comes just weeks before Polkadot's first para chain slot auctions that are slated to commence on November 11.
This auction will allow several blockchain projects to integrate with the Polkadot cryptocurrency's governance, security, and decentralised mechanisms, news portal Medium said in a report.
Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.