Tech
Web3 Foundation and Parity Technologies dismiss fears of Polkadot treasury depletion
Web3 Foundation AND Parity Technologieskey players in the Polka dot ecosystem, have declared their financial independence from the network’s on-chain treasury.
The CEOs of the two companies have revealed their “significant financial runway” after recent reports raised concerns about the the financial health of blockchain.
Parity Technologies is the blockchain infrastructure behind Polkadot and the Web3 Foundation supports the growth of the network through funding and research.
Financial independence
Fabian Gompf, CEO of the Web3 Foundation, clarified that the foundation has over five years of financial activity without selling DOT tokens.
Gompf also dismissed concerns about the Treasury as misguided, noting that “the Treasury has continued inflows [and is] they will never run out of funds.”
However, Gompf suggested that the treasury should focus on initiatives not covered by the foundation. He criticized recent spending on low-return activities and urged the community to vote for change.
Likewise, Björn Wagner, CEO of Parity Technologies, supported Gompf’s views. noticed that both organizations have significant financial independence from the on-chain treasury, which receives continuous inflows.
While Wagner agreed with concerns about recent spending, he highlighted Polkadot Governance as a leading and evolving DAO that offers “many opportunities for those looking to help build this exciting future.”
Industry recognition
Meanwhile, Polkadot’s treasury report has received considerable praise for its transparency within the cryptocurrency community.
Mikko Ohtamaa, CEO of Trading Strategy, praised the network for its unprecedented transparency and accountability in the blockchain industry. He She said:
“Public blockchains and foundations should be transparent, as they are morally accountable to token holders (even if not legally). Polkadot has led the way in this regard. Being transparent exposes past wrongdoings and you can redeem your sins. There can be a change of direction, a turning of the page.”
Several community members have advised other crypto projects to follow Polkadot’s example and publish their treasury reports. They say that some of these projects may be spending more on ineffective activities without disclosing their financial status to their communities.
Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.