Gavin Wood’s announcement comes weeks before the launch of Parachain auctions, scheduled for November 11
Polkadot founder Gavin Wood has revealed that the blockchain platform’s treasury has $777 million in DOT tokens, a significant amount of money that developers believe they can use to build and improve the project.
In a tweet posted on Oct. 17, Wood said Polkadot’s treasury has $18.9 million, which is about $7,777 million at the token’s current price. According to him, the money can be part of a development fund that will be used to build and improve the ecosystem of the network.
He also suggested that the money could be used to educate the community about Polkadot and the crypto ecosystem.
According to Wood, who also founded Kusama and is a co-founder of Ethereum, the amount of DOT held in the treasury is accumulated by the network protocol, with DOT over “Fees, Slashes and suboptimal staking configurations” enter into the contract.
He added that it is best if the DOT is used well, and shared:
“If left unused, it will be slowly burned. Currently, 239,988 DOT are destroyed every month.”
DOT is one of the cryptocurrencies that has shown excellent performance in recent weeks, with DOT/USD rising more than 21% in the last seven days.
The optimism surrounding cryptocurrency is largely due to the upcoming launch of Parachains, a highly anticipated event that will see the growth of the Polkadot network skyrocket.
Parachains are basically side-chains on which developers can build decentralized applications, with the technology enabling interoperability between protocols and the “Relay Chain” easier, cheaper and safer.
Wood’s proposal could lead to millions of dollars being made available to developers of decentralized finance (DeFi) applications, ushering in a new era for the eighth-largest cryptocurrency project by market capitalization.
However, the proposal must be approved by the Polkadot Governance Council, with Community participation as the key to unlocking the funding.